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The big takeaways from Biden’s jobs report bust

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Women, teachers and health care employees all suffered from the slow rebound last month.

The labor market recovery that President Joe Biden has promised slowed again in September, with a weaker-than-expected 194,000 new jobs created.

That suggests school reopenings and the end of generous federal jobless benefits haven’t brought enough Americans back into the labor force amid the resurgence of the coronavirus.

Yet the recovery has been uneven throughout the economy, with women, teachers and health care employees suffering from the slow rebound last month, according to a Labor Department report released Friday. Among the gainers in September were white and Asian workers, retail and hospitality employees, the long-term unemployed and wage earners generally.

While the overall unemployment rate fell to 4.8 percent from 5.2 percent, the drop was likely fueled by 183,000 people leaving the labor force.

Biden touted the report as another sign that his administration has delivered steady month-over-month job growth and blamed the disappointing overall number partly on the fact the survey was taken before a recent decline in Covid cases.

“Remember, today’s report is based on a survey that was taken during the week of September the 13th, not today — September 13, when COVID cases were averaging more than 150,000 per day,” the president said in remarks after the report. “Since then, we’ve seen the daily cases fall by more than one-third and they’re continuing to trend down. We’re continuing to make progress.”

Here’s a closer look at how key groups fared in September:

Women

The report showed that 309,000 women 20 years and older dropped out of the labor market in September, marking the second straight month of losses. Men in the same age group regained 182,000 jobs.

Working women have been acutely affected by the school and child care closures prompted by the pandemic, holding many back from returning to the workforce. But they were initially expected to go back to work in September, with school reopenings relieving some of the responsibilities that had been keeping them at home. But since the Delta variant of the coronavirus took hold in late summer and disrupted school plans, economists have been bracing for a devastating September for women who may have had to continue taking care of their kids amid the uncertainty. The numbers show that concern was well-founded.

Race

While other major ethnic groups have seen their unemployment rates near or below the national level throughout most of 2021, the rate among Black workers had remained near 9 percent. In September, Black unemployment fell by almost a full percentage point to 7.9 percent, narrowing the gap on the national rate of 4.8 percent. The bad news: 83,000 Black workers also left the labor force last month, probably contributing to the drop in the jobless rate.

Black workers — and women in particular — make up large shares of the workforce in health services and child care, industries that have been slower than most to recover. AFL-CIO Chief Economist Bill Spriggs has also argued that the stubbornly high unemployment rate among Black workers could be due to discrimination in hiring.

Hispanic workers have also been experiencing jobless rates above the national level, seeing 6.3 percent unemployment in September, little changed from August. White and Asian workers have been recovering more quickly, with the unemployment rate falling to 4.2 percent in September for both groups.

Retail and leisure

Consumer-facing industries including retail, leisure and hospitality were walloped in early 2020 by pandemic safety restrictions and business closures, facing the largest post-pandemic jobs deficit of any sector of the economy. They remain the first to take the hit when fears of the virus increase. But both sectors saw some improvement in September, which is a good sign for the economy as coronavirus cases start to recede. Leisure and hospitality added 74,000 jobs, while retail added 56,000.

Labor force participation

Beyond the topline number, the jobs reports suggests that fewer people were optimistic enough about the market to look for work last month.

While the national unemployment rate has been falling for months, the labor force participation rate — which captures how many people are either employed or actively looking for work — has remained pretty stagnant. That rate was 61.6 percent in September, not much different from the 61.7 percent in August. It’s also still down 1.7 percentage points from February 2020, just before the pandemic hit. That matters because the size of the workforce is tied to productivity, which is the basis for wage gains.

Many Republicans had predicted that the Sept. 6 expiration of federal unemployment benefits would increase employment as Americans could no longer afford to stay away from work. But since the jobless aid has ended for millions, many people have fallen out of the labor force instead and are no longer considered “unemployed.” While this can push the unemployment rate down — if you’re not actually looking for a job, you’re not counted as unemployed — it’s also a sign that there are fewer people actively available for work.

Wages

Average hourly earnings increased in September by 19 cents, bringing them to $30.85. That follows five months of significant hikes in wages and suggests that the widespread demand for workers as businesses have reopened has put upward pressure on pay, as employers compete for labor.

Long term unemployed

The longer people remain unemployed, the longer it typically takes them to find a job, which is why economists like to keep an eye on the number of those who have been out of a job for at least six months. That figure fell by nearly 500,000 last month, which is a good indicator of labor market health, as people with large gaps on their resumés can face more obstacles to reemployment and can find themselves in deeper financial trouble. However, there were still 1.6 million more long-term unemployed in the workforce last month than before the pandemic began.

Education

One of the puzzles in the jobs report was the loss of jobs in state and local public education in September — the month when schools were supposed to reopen. Instead, the market saw a notable decrease in jobs in this area — a drop of 161,000 workers, which dragged down the headline numbers.

Much of this, however, is likely due to seasonal adjustment. That’s because schools usually ramp up hiring in September for the start of the academic year, so the models that adjust for seasonal factors expect it. But this year, some of those hires may have taken place in July and August as students started earlier, making September hiring in public education slower than normal. But while the decline of 161,000 looks bad, it’s probably due in part to hires that did not happen last month rather than actual job losses, a key distinction.

About the author: Rebecca Rainey is an employment and immigration reporter with POLITICO Pro and the author of the Morning Shift newsletter. Prior to joining POLITICO in August 2018, Rainey covered the Occupational Safety and Health administration and regulatory reform on Capitol Hill. 

About the author: Megan Cassella is a trade reporter for POLITICO Pro. Before joining the trade team in June 2016, Megan worked for Reuters based out of Washington, covering the economy, domestic politics and the 2016 presidential campaign.

This blog originally appeared at Politico on October 8, 2021. Reprinted with permission.


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North Carolina just lost out on another 730 jobs because of its anti-LGBT law

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Zach FordThis week, North Carolina found out it is not getting 730 new jobs and a quarter-billion-dollar impact that it was the top contender for. The reason? Its anti-LGBT law, HB2, which bans trans people from using the bathroom and bars municipalities from protecting LGBT people from discrimination.

CoStar Group Inc., a real estate analytics company, had been shopping around cities to build a new research operations headquarters, and the contenders were Charlotte, Richmond, Atlanta, and Kansas City. The Atlanta Business Chronicle heard from sources that Charlotte was the favorite. But the jobs are going to Richmond.

According to David Dorsch, CoStar Group’s commercial real estate broker, “The primary reason they chose Richmond over Charlotte was HB2.” CoStar Group was itself, a bit mum, simply confirming the jobs were going to Richmond-and no expansions were planned anywhere else. But Dorsch was adamant that the jobs were another casualty of the discriminatory law. “The best thing we can do as citizens in North Carolina is to show up on Nov. 8 and think about which party is costing us jobs and which one is not.”

Co-Star’s expansion is the latest-and one of the biggest-losses the state has faced over HB2. In April, PayPal backed out of a 400-job expansion in Charlotte and Deutsche Bank froze a 250-job expansion in Cary-both companies openly stating they refused to expand in a state with such a discriminatory law.

North Carolina has also lost several prominent sporting events, such as the NBA All-Star Game, various NCAA championships, and the ACC championships, each a significant economic impact the state will no longer enjoy.

Additionally, there are countless conventions, entertainers, and film companies that have backed out of economic commitments in North Carolina. Numerous states have even banned state-funded travel to the state. Plus, the state has to spend money to defend the law in court; the legislature even redirected $500,000 from emergency relief funds to cover the legal costs. That was before Hurricane Matthew devastated the state with massive flooding, and Gov. Pat McCrory (R) insists that even though he didn’t veto that measure, he hasn’t actually spent that money (yet).

But McCrory’s administration denies there’s been any backlash whatsoever. His Commerce Secretary, John Skvarla, insisted this week that HB2 “hasn’t moved the needle one iota.” Indeed, he claimed that the state is financially and operationally in the “best position” it’s ever been.

As the Charlotte Observer pointed out, this doesn’t jibe with the losses that local business leaders have reported because of decreased tourism and development. Johnny Harris, a real estate developer in Charlotte, believes that “ for every one company that decides to relocate to North Carolina that another 10 probably are not, deterred by HB2.”

They’re not in total denial, though. Skvarla also admitted that the state made PayPal give back a ceremonial wooden bowl that McCrory had given to the company as a gift celebrating the original plan to expand in North Carolina. As the Observer described it, “state officials did what any jilted ex might: Asked for their stuff back.”

It could be that because the boycotts were either new expansions that don’t appear as losses or recurring events that haven’t happened again yet, they don’t show up in Skvarla’s numbers. But the numbers do show up.

In September, Facing South estimated that, based only on the backlash that was evident so far at the time, the law’s cost would be well over $200 million. Wired similarly crunched the numbers in September and found losses approaching $400 million. And back in May, the Williams Institute made a similar estimate, but also counted the $4.8 billion in federal funding North Carolina receives that it would no longer be eligible for because of its enforcement of HB2 in schools and universities?—?a grand total of $5 billion in potential losses, per year.

This article was originally posted at Thinkprogress.org on October 25, 2016.
Reprinted with permission
.

Zack Ford is the LGBT Editor at ThinkProgress.org. Gay, Atheist, Pianist, Unapologetic “Social Justice Warrior.” Contact him at zford@thinkprogress.org. Follow him on Twitter at @ZackFord.


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288,000 New Jobs Drop Unemployment Rate to 6.3% in April

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Image: Mike HallThe economy added 288,000 jobs in April, a big boost over March’s 192,000 new jobs. The unemployment rate dropped to 6.3% from last month’s 6.7%, according to figures released this morning by the U.S. Bureau of Labor Statistics.

Over the past year, the number of jobless has decreased by 1.9 million and the unemployment rate has fallen from 7.5%. While the improved jobs numbers over the past several months show the economy is beginning to recover, job growth is still not robust enough to provide jobs for the millions who remain out of work or to boost wages for most Americans.

AFL-CIO Government Affairs Director Bill Samuel said, “Today’s strong job numbers represent a significant step in the right direction for working families.” But he added:

Yet with wages stagnant and too many still out of work, our job is not done. As our economy recovers, it is important that everyone reap the benefits of our shared recovery by ensuring we are not simply creating new jobs, but good jobs. Our leaders in Congress must work quickly to build on today’s good news by passing comprehensive jobs legislation, extending unemployment insurance, and raising the minimum wage, so that growth can not only continue, but provide everyone a fair chance at the American Dream.

The number of long-term unemployed people (those jobless for 27 weeks or more) declined by 287,000 to 3.5 million in April. While the problem of long-term joblessness continues to plague the economy, House Republicans continue to refuse to allow a vote on the extension of the Emergency Unemployment Compensation benefits program that was approved by a bipartisan Senate majority. House Republicans allowed emergency help for jobless workers to expire at the end of last year.

So far, nearly 3 million jobless workers have lost benefits and that number continues to rise.

Call your representative at 845-809-4509 and her or him to pass the emergency unemployment benefits extension.

Last month’s biggest job gains were in professional and business services (75,000), retail trade (35,000), food services (33,000), construction (32,000), health care (19,000) and mining (10,000).

Employment in other major industries, manufacturing, transportation and warehousing, wholesale trade, financial activities and government, changed little over the month.

Unemployment rates for the major worker groups declined in April: adult men (5.9%), adult women (5.7%), whites (5.3%), blacks (11.6%) and Latinos (7.3%).

This article was originally printed on AFL-CIO on May 2, 2014.  Reprinted with permission.

About the Author: Mike Hall is a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journaland managing editor of the Seafarers Log.  He came to the AFL- CIO in 1989 and has written for several federation publications, focusing on legislation and politics, especially grassroots mobilization and workplace safety.


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