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The furlough becomes permanent and the salary difficulties are reversed.
The crucial August employment report is just one day away.
And ahead of these data, two readings on the labor market published on Wednesday, pointing to support from the Cares Act, pointed to a slowdown in employment in the first month.
And it should serve as a troubling backdrop for legislators who are still a long way from passing a new aid package for workers and industries working at lower levels of people who were pre-epidemic.
ADP’s private payroll data released Wednesday morning showed that 428,000 jobs have been added to private sector payrolls in Sector Gust. This was more than the 212,000 added last month, but less than Wall Street’s expected 1 million jobs were added last month.
Ahu Yildirimaj, vice-president and co-head of the ADP Research Institute, said on Wednesday, “August Gust’s job postings show a slow recovery. Job gains are minimal, and businesses in all sizes and sectors have yet to come close to their Co-IVID-19 employment level. “
And on Wednesday afternoon, the Federal Reserve’s latest badge book report shows that the labor market is mixed in 12 districts of the Fed. The badge book will be closely monitored by investors as it is formed based on economic discussions during the next two-day policy meeting of Fed officials, which will be held on September 15-15.
“Employment in the districts has increased overall, with production benefiting the most,” the Beige Book said. This positive comment on manufacturing employment with the data received earlier this week in the sector earlier this week.
Therefore, some positive indicators – low wage roles arising in wage pressures – have been cut and pasted – and negative indicators and risky salaries that have become permanent have returned.
But post-lockdown recovery is still in its infancy and overall employment in the U.S. economy has fallen by more than 12 million since February, a flat-to-mix mixed look for the labor market is not what policymakers should be shooting.
“The epidemiological distrust and instability and its negative impact on consumer and business activity was a theme that resonated across the country,” the Beige Book said.
So while stocks continue to rise on Wednesday and earnings indicate that corporate corporate America has better days ahead, the current reality for many workers and consumers is a non-ground realization of economic recovery off the level of despair.
