U.S. The recent layoffs and furlough provocations are also creating a new obstacle to a fragile economic recovery, the pace of which seems to be waving the flag.
A large number of airline carriers and hotel chains such as American Airlines AAL.
And MGM Resorts MGM,
Said this week that they would face massive customer losses due to the coronavirus epidemic, as they would lay off or fire more than 40,000 employees. Many colleges and schools also have plans to reduce staffing and worse news is probably on the way.
Read:Consumer spending slowed in July as economic recovery lost some momentum in recovery
The new variation in the economy suggests that in May and June the states allowed the industries to reopen, giving way to further growth, with progress likely to be more uneven.
Sam Boulard, a senior economist at Wells Fargo, said: “Concerns about the stability of the pace of recovery in the scattered market are growing.”
Economic growth slowed in July and is expected to return in August. The economy is still recovering, for sure, not so fast.
“It simply came to our notice then. Now the hard part begins, ”said Richard Moody, the region’s chief financial economist. “August Gust will be a transitional month.”
Wall Street will host the U.S. Open next Friday in August. The employment report will look for more evidence of cracks in recovery.
See: Marketwatch Economic Calendar
Economists predict the economy could add about 1.6 million jobs, just one touch less than the 1.76 million it received in July. The unemployment rate fell to 9.9% in July from 10.2%.
Read:U.S. Initial job claims fell to 1 million in late August and the downward trend resumed
A more important number to look at is private sector recruitment. The government added 250,000 temporary census workers in August Gust while educational employment could rise sharply because of season-to-season talk tied to the epidemic.
Private sector employment is expected to increase slightly from ten million. The recently announced layoffs, for their part, will not appear until the September employment report.
Now it remains to be seen whether Democrats and Republicans in Congress will break the sabotage before they lose most of their workers’ payments on the upcoming fiscal aid bill.
The White House has sent signals that it wants to encourage the most tolerant airlines and other industries during the airport. Earlier the government helped airlines keep employees on payroll, whether or not they operate through the recently terminated huge federal subsidy.
Read: Do expired 600 federal unemployment benefits prevent people from going back to work?
If there are some silver linings, consumer costs and product production have actually risen faster than expected and have shown little sign of fading. So far there is very little evidence that the loss of tens of billions of dollars in federal aid for the unemployed has resulted in a lot of homes turning up.
Sell automobiles and homes. After the first few months of the epidemic they bounced quickly and are still strong.
Usually demand expensive goods like new cars, trucks and houses when the economy stumbles and consumers worry about their jobs. It’s not happening right now.
However, most economists are skeptical that the U.S. Others could develop too quickly without a federal relief package that hires people or demands enough to encourage businesses to avoid layoffs.
Read: “The recovery is slowing down,” says the Fed Master.
“Consumers and businesses are going to be cautious in the fall,” Bullard said. “Given all the headwinds, it will take time for the economy to fully recover.”