THE ECONOMY

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CNBC

"U.S. adds 850,000 jobs in June, better than expected"


Jeff Cox @JEFF.COX.7528 @JEFFCOXCNBCCOM

PUBLISHED FRI, JUL 2 2021

KEY POINTS

* Nonfarm payrolls increased by 850,000 in June versus the estimate for 706,000.

* The unemployment rate unexpectedly rose to 5.9% versus the 5.6% estimate.

* Wages were up 0.3% for the month and 3.6% year over year, both in line with expectations.


Job growth leaped higher in June as businesses looked to keep up with a rapidly recovering U.S. economy, the Labor Department reported Friday.

Nonfarm payrolls increased 850,000 for the month, compared with the Dow Jones estimate of 706,000 and better than the upwardly revised 583,000 in May.


The unemployment rate, however, rose to 5.9% against the 5.6% expectation.

The jobless rate increase came even though the labor force participation rate was unchanged at 61.6%.

A separate figure that accounts for discouraged workers and those holding part-time jobs for economic reasons fell sharply to 9.8%, with the 0.4 percentage point decline putting the so-called real unemployment rate below 10% for the first time since March 2020.

Markets rose on the news, with futures on the major indexes indicating modest gains at the open before the holiday weekend.

“From a market perspective, this was an all-out positive jobs report,” said Seema Shah, chief strategist at Principal Global Investors.

“The improvement today likely reflects a slight easing of the labor supply constraints that have been holding back the jobs market in recent months, as well as continued momentum from the economic reopening.”

Hiring accelerated as the second quarter morphed into a summer that will see a closer to return to normal for Americans held captive for the past year due to the pandemic-related restrictions.

As the data continues to point higher, economists are looking for GDP growth in the second quarter to approach 10%, a stunning continuation of a rebound helped by vaccines that have sharply reduced Covid-19 case rates along with hospitalizations and deaths.

The latest numbers bring the total job recovery from the pandemic losses to 15.6 million.

More than 22.3 million Americans were laid off in March and April of 2020 amid government-imposed business restrictions, and the total employment level remains 7.13 million below where it was in February 2020.

Hospitality continued to be the prime beneficiary of the reopening as workers returned to jobs at bars, restaurants, hotels and the like.

The industry notched a gain of 343,000 amid easing restrictions across the country.

That total included 194,000 in bars and restaurants, but still left the sector 2.2 million shy of where it was in February 2020 before the pandemic began.

Despite the big increase in jobs, the sector’s unemployment rate jumped to 10.9%.

Other notable gains came in education, which totaled 269,000 across state, local and private hiring, while professional and business services increased by 72,000 and retail added 67,000.

The other services industry added 56,000 jobs, including a gain of 29,000 in personal and laundry services, a subsector that has been seen as a proxy for the resumption of normal business activity.

Social assistance added 32,000, while wholesale trade contributed 21,000 to the total and mining grew by 10,000.

Manufacturing edged up 15,000 for the month, though construction lost 7,000 positions despite a sizzling housing industry where new building has been held back by supply shortages and what had been soaring lumber prices before the recent plunge.

Amid the rise in total employment, wage gains also accelerated.

Average hourly earnings increased 0.33% for the month and 3.6% year over year, both matching Dow Jones estimates.

Aggregate wage growth had been distorted through much of the pandemic as lower-earning workers in high-contact industries like hospitality remained sidelined.

The June gain puts the jobs market ahead of its previous pace; average hourly earnings rose 3% in February 2020 year over year at a time when lower-earning workers finally had been seeing gains after a generation of stagnant paychecks.

Revisions to previous months pushed the job totals up a bit – May rose 24,000 to 583,000 thought that was mitigated by a reduction of 9,000 in April to 269,000.

The average work week declined by 0.1 hour to 34.7 hours.

https://www.cnbc.com/2021/07/02/jobs-re ... -2021.html
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Re: THE ECONOMY

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REUTERS

"Fed's Daly: Appropriate to consider tapering later this year"


By Reuters Staff

JULY 2, 2021

(Reuters) -Federal Reserve Bank of San Francisco President Mary Daly said the U.S. central bank may be able to start reducing “a little bit” of its extraordinary support for the U.S. economy by the end of this year.

“The economy is really shaping up nicely,” Daly told the Associated Press in an interview, a recording of which was provided to Reuters by the San Francisco Fed.

“It is appropriate to consider tapering asset purchases later this year or early next year,” she said.

“That timeframe has been evolving of course, but I really see the economy as being able to start functioning more and more on its own, which means we can withdraw a little bit of our accommodation, of course not the majority of it.”

Fed policymakers have been surprised at the strength of the U.S. recovery this year, fueled by $2.8 trillion in federal pandemic aid and a faster-than-expected rollout of vaccines against COVID-19.

That has touched off an internal debate over when and how to start reducing their purchases of Treasuries and mortgage-backed securities, which they had promised to continue doing at a pace of $120 billion a month until the economy makes “substantial further progress” towards the Fed’s employment and inflation goals.

Some Fed policymakers feel the taper ought to start soon to make room for the possibility that the Fed will need to start raising interest rates by next year.

Daly’s comments suggest she is not in any such rush.

“We are still not near our full employment goals."

"We are still likely to be missing, going forward, on our inflation target, our price stability goals, despite the temporary runups in measured inflation,” she said.

“Those are things I’m really rigorously sticking to.”


Reporting by Ann Saphir; Editing by Leslie Adler and Alistair Bell

https://www.reuters.com/article/usa-fed ... SL2N2OE2GX
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Re: THE ECONOMY

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REUTERS

"Analysis-Strong jobs numbers throw markets focus back on data, Fed"


By David Randall, Kate Duguid

JULY 2, 2021

NEW YORK (Reuters) - A stronger than expected U.S. employment report is strengthening investors’ focus on economic data and the Federal Reserve’s next move, as markets cheer further evidence of a robust economic recovery amid worries over persistent inflation.

U.S. companies hired the most workers in 10 months in June, Friday’s data showed, raising wages to entice millions of unemployed Americans sitting at home in a tentative sign that a labor shortage hanging over the economy was starting to ease.

While the initial market reaction to the report was positive, with stocks rising to fresh highs and Treasury yields dipping only slightly, investors said the data does little to dispel concerns that a strong recovery and rising wages could force the Fed to begin unwinding its easy money policies faster than expected.

That dynamic could weigh on financial markets over the summer, as investors await the Fed’s July monetary policy meeting and its August symposium in Jackson Hole, Wyo., after a hawkish shift from the central bank last month prompted several days of market turbulence.

Minutes from the central bank’s latest monetary policy meeting, due out next week, may also give a glimpse into policymakers’ thinking.

“I think the market is torn,” said Priya Misra, head of global rates strategy at TD Securities.

“If the data is better, normally that should mean higher rates, but if the Fed is forced to exit faster that would slow down the economy.”

Though U.S. stocks stand near highs, some analysts have noted signs of caution in various corners of the market.

Worries over the spread of the COVID-19 Delta variant have weighed on travel and leisure stocks and economically sensitive value shares, while concerns over a potentially more hawkish Fed are among the factors keeping yields on U.S. government bonds subdued.

Investors in recent weeks have also noted a concentration of the market’s gains in fewer stocks, which some investors view as a sign of waning confidence in the broader market.

Nonfarm payrolls increased by 850,000 jobs last month after rising 583,000 in May according to the Labor Department.

That left employment 6.8 million jobs below its peak in February 2020.

Average hourly earnings rose 0.3% last month, pushing the year-on-year increase in wages to 3.6% from 1.9% in May.

Concerns over inflation were more apparent in the bond market, where 10-year Treasury yields have been in a range after peaking at 1.776% on March 30.

Yields fell Friday to 1.431%, while the benchmark S&P 500 stock index gained nearly 0.61% to a new record high.

“I’d guess the Fed winds up hiking sooner and/or faster than two hikes in 2023 because of the labor force worries,” said Tom Graff, head of international fixed income at Brown Advisory.

“It means the non-transitory phase is probably closer than the Fed is admitting.”

Friday’s report should prompt the Fed to focus more on tapering its support of the economy at its upcoming August meeting, said Rick Rieder, chief investment officer of global fixed income at BlackRock.

“Today’s payroll report reinforces that the economy is bursting with demand (particularly for qualified workers) and is only being held back by supply,” he noted.

Reporting by David Randall; Editing by Chizu Nomiyama

https://www.reuters.com/article/usa-mar ... SL2N2OE1OW
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Re: THE ECONOMY

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REUTERS

"U.S. employment likely accelerated in June as companies boost perks"


Lucia Mutikani

July 2, 2021

Summary

* Nonfarm payrolls forecast to increase 700,000 in June

* Unemployment rate seen falling to 5.7% from 5.8% in May

* Average hourly earnings forecast up 0.4%; workweek steady


WASHINGTON, July 2 (Reuters) - U.S. job growth likely picked up in June as companies, desperate to boost production and services amid booming demand, raised wages and offered incentives to lure millions of reluctant unemployed Americans back into the labor force.

The Labor Department's closely watched employment report on Friday will likely show that the economy closed the second quarter with strong growth momentum, following a reopening made possible by vaccinations against COVID-19.

More than 150 million people are fully immunized, leading to pandemic-related restrictions on businesses and mask mandates being lifted.

Despite the anticipated acceleration in hiring, employment gains would probably still be less than the million or more per month that economists and others had been forecasting at the beginning of the year.

"There are jobs, but workers are not there," said Sung Won Sohn, professor of finance and economics at Loyola Marymount University in Los Angeles.

The minimum pay workers will accept has risen significantly since the pandemic began, he said, "and many workers have an inflated view of what their skills are worth and as a result they are not willing to go back to work at the prevailing wage."


According to a Reuters survey of economists, nonfarm payrolls likely increased by 700,000 jobs last month after rising 559,000 in May.

That would be more than the 540,000 monthly average over the past three months.

Still, employment would be about 6.9 million jobs below its peak in February 2020.

Estimates ranged from as low as 376,000 to as high as 1.05 million.

The unemployment rate is forecast dipping to 5.7% from 5.8% in May.

The jobless rate has been understated by people misclassifying themselves as being "employed but absent from work."

There are a record 9.3 million job openings.

Politicians, businesses and some economists have blamed enhanced unemployment benefits, including a $300 weekly check from the government, for the labor crunch.

Lack of affordable child care and fears of contracting the coronavirus have also been blamed for keeping workers, mostly women, at home.

There have also been pandemic-related retirements as well as career changes.

Economists generally expect the labor supply squeeze to ease in the fall as schools reopen and the government-funded unemployment benefits lapse but caution many unemployed will probably never return to work.

Record-high stock prices and surging home values have also encouraged early retirements.

"Labor shortages may become less of a constraint from September, but there is no guarantee, given evidence to suggest potentially more than 2 million people have taken early retirement in the past year," said James Knightley, chief international economist at ING in New York.


SWEETENING OFFERS

According to job search engine Indeed, 4.1% of jobs postings advertised hiring incentives through the seven days ending June 18, more than double the 1.8% share in the week ending July 1, 2020.

The incentives, which included signing bonuses, retention bonuses or one-time cash payments on being hired, ranged from as low as $100 to as high as $30,000 in the month ended June 18.

Some restaurant jobs are paying as much as $27 per hour plus tips, according to postings on Poachedjobs.com, a national job board for the restaurant/hospitality industry.

The federal minimum wage is $7.25 per hour, but is higher in some states.

"The fact is, competition for talent is going to become brutal," said Ron Hetrick, director of staffing products at Emsi, a labor market data firm in Moscow, Idaho.

"Businesses can no longer assume there will be enough people to go around."

Average hourly earnings are forecast rising 0.4% last month after increasing 0.5% in May.

That would boost the year-on-year increase in wages to 3.7% from 2.0% in May.

Annual wage growth will in part be flattered by so-called base effects following a big drop in earnings last June.

With employment not expected to return to its pre-pandemic level until sometime in 2022, rising wages are unlikely to worry Federal Reserve officials even as inflation is heating up because of supply constraints.

Fed Chair Jerome Powell has repeatedly stated he expects high inflation will be transitory.

"There is probably going to be some pick-up in wage growth but not enough to really change what we already know about inflation over the coming months," said James McCann, deputy chief economist at Aberdeen Standard Investments.

"What the data could do is cement investors' thinking about when the Fed might announce a tapering of asset purchases."

The U.S. central bank last month opened talks on how to end its crisis-era massive bond-buying.

In line with recent trends, jobs gain in June were likely led by the leisure and hospitality industry.

Manufacturing employment likely increased, though gains were probably curbed by the rampant worker shortages.

The Institute for Supply Management reported on Thursday that its measure of factory employment contracted for the first time in seven months in June.

Construction payrolls likely rebounded after declining in May.

The sector is being supported by robust demand for housing, though expensive lumber is hampering homebuilding.

Government employment likely increased sharply, driven by state and local government education.

End of school year layoffs were probably fewer relative to the previous year.

This is expected to boost the seasonally adjusted education payrolls.

The average workweek likely held at a high 34.9 hours.

Reporting by Lucia Mutikani; Editing by Dan Burns and Andrea Ricci

https://www.reuters.com/business/us-emp ... 021-07-02/
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Re: THE ECONOMY

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REUTERS

"Yellen to press G20 for higher minimum corporate tax rate - U.S. Treasury"


David Lawder

July 6, 2021

WASHINGTON, July 6 (Reuters) - U.S. Treasury Secretary Janet Yellen will press G20 counterparts this week for a global minimum corporate tax rate above the 15% floor agreed by 130 countries last week, but a rate decision is not expected until future phases of negotiations, U.S. Treasury officials said on Tuesday.

The specific rate, and potential exemptions, are among issues still to be determined after 130 countries reached an historic agreement at a Paris-based Organisation for Economic Co-operation and Development (OECD) meeting last week.

The countries outlined a global minimum tax and the reallocation of taxing rights for large, highly profitable multinational firms.

The deal is widely expected to be endorsed by G20 finance leaders when they meet on Friday and Saturday in Venice, Italy.

Negotiations on the global minimum tax rate, aimed for completion by the G20 leaders' summit in October, is tied to the outcome of legislation to raise the U.S. minimum tax rate, a Treasury official said.

The Biden administration has proposed doubling the U.S. minimum tax on corporations overseas intangible income to 21% along with a new companion "enforcement" tax that would deny deductions to companies for tax payments to countries that fail to adopt the new global minimum rate.


The officials said several countries were pushing for a rate above 15%, along with the United States.

Yellen has been working with the tax-writing committees in Congress to include such provisions in budget "reconciliation" legislation, to align U.S. tax laws with the new international tax goals.

Democrats in Congress have said they plan to pursue such legislation, expected to include new social program investments and tax increases on U.S. corporations and wealthy Americans, without Republican votes if necessary.

Republicans have vowed to fight any U.S. tax increases.

The officials said the Treasury's legislative proposals for reallocating taxation rights have been carefully crafted to appeal to both Democrats and Republicans.

The plans mark a shift from traditional headquarters-based taxation to allow countries where the largest and most profitable U.S. firms sell products and services to tax a portion of those profits.

The Treasury would also be able to tax part of the profits of large foreign firms selling into the United States.


The official said that the positives from the deal include ensuring no loss of U.S. tax revenues and ending foreign countries' digital services taxes aimed at U.S. technology giants.

The Treasury officials added that Yellen is also making clear that a potential new digital levy expected to be proposed by the European Commission in the coming weeks to fund COVID-19 recovery is inconsistent with European Union commitments to the OECD framework agreement signed on July 1.

European Commission executive vice president Margrethe Vestager told Reuters that the levy would be paid largely by European companies to repay 750 billion euros ($886 billion) in borrowing for a post-pandemic recovery fund.

Reporting by David Lawder and Andrea Shalal, Editing by Franklin Paul, Barbara Lewis and Aurora Ellis

https://www.reuters.com/business/yellen ... 021-07-06/
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Re: THE ECONOMY

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Investing.com

"U.S. service sector activity cools in June; employment measure contracts - ISM survey"


By Lucia Mutikani

Jul 06, 2021

WASHINGTON (Reuters) - U.S. services industry activity grew at a moderate pace in June, likely restrained by labor and raw material shortages, resulting in unfinished work continuing to pile up.

The Institute for Supply Management said on Tuesday its non-manufacturing activity index fell to 60.1 last month from 64.0 in May, which was the highest reading in the series' history.


A reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of U.S. economic activity.

Economists polled by Reuters had forecast the index easing to 63.5.

The economy has been hit by shortages of labor and raw materials as it reopens after more than a year of disruptions caused by the COVID-19 pandemic.

More than 150 million people are fully immunized against the coronavirus, resulting in the lifting of pandemic-related restrictions on businesses and mask mandates, helping demand to revert back to services from goods.

The survey's measure of backlog orders increased to a reading of 65.8 from 61.1 in May.

New orders remained healthy and there is ample scope for hefty gains in the months ahead, with inventories contracting in June.

Inventory sentiment among customers remained poor.

Business inventories were depleted in the first quarter amid pent-up demand.

With supply constraints showing no sign of letting up, businesses continued to pay more for inputs.

The survey's measure of prices paid by services industries dipped to a still-high 79.5 from 80.6 in May, which was the highest reading since September 2005.

The continued elevation supports some economists' view that higher inflation to prove to be more persistent than currently envisioned by the Federal Reserve.


Fed Chair Jerome Powell has repeatedly stated that higher inflation will be transitory noting that he expected supply chains to normalize and adapt, views also shared by Treasury Secretary Janet Yellen.

The Fed's preferred inflation measure for its 2% target, the personal consumption expenditures price index, excluding the volatile food and energy components, shot up 3.4% year-on-year in May, the largest gain since April 1992.

The ISM survey's measure of service employment fell to a reading of 49.3 in June from 55.3 in May.

There is, however, cautious optimism that the worker shortage is starting to ease.

The government reported on Friday that nonfarm payrolls increased by 850,000 jobs in June, the largest gain in 10 months, after rising 583,000 in May.

https://www.investing.com/news/economic ... ey-2550750
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Re: THE ECONOMY

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CNBC

"Fed officials kept a patient tone in terms of tightening monetary policy, minutes show"


Jeff Cox @JEFF.COX.7528 @JEFFCOXCNBCCOM

PUBLISHED WED, JUL 7 2021

KEY POINTS

* Fed officials at their most recent meeting talked about reducing asset purchases but also expressed the need for patience.

* Some members noted the faster progress of the economic recovery though the committee overall said conditions have not met the “substantial further progress ” benchmark to start tightening policy.

* The meeting summary also reiterated the Fed’s view that while inflation has been rising faster than they expect, they see the current trend as transitory.


Federal Reserve officials talked tapering at their most recent meeting, but few seemed in a rush to get the process going, according to minutes released Wednesday.

The Federal Open Market Committee’s June 15-16 meeting summary provided only a few new glimpses into talks about when the central bank should begin reducing the pace of its bond purchases.


Some members indicated that the economic recovery was proceeding faster than expected and was being accompanied by an outsized rise in inflation, both making the case for taking the Fed’s foot off the policy pedal.

However, the prevailing mindset was that there should be no rush and markets must be well prepared for any shifts.

Most members agreed, according to the minutes, that the economy had yet to meet the “substantial further progress” benchmark the Fed has set out for any significant shifts in policy.

“In coming meetings, participants agreed to continue assessing the economy’s progress toward the Committee’s goals and to begin to discuss their plans for adjusting the path and composition of asset purchases,” the minutes stated.

“In addition, participants reiterated their intention to provide notice well in advance of an announcement to reduce the pace of purchases.”

While the document noted that some officials saw tapering conditions “to be met somewhat earlier than they had anticipated,” others said the FOMC “should be patient in assessing progress toward its goals and in announcing changes to its plans for asset purchases.”

Markets showed little reaction, with stocks nudging higher and government bond yields lower.

“The minutes of the Fed’s mid-June FOMC meeting were not as hawkish as we suspected,” wrote Paul Ashworth, chief U.S. economist at Capital Economics.

“In particular, there seems to be only limited support for beginning to taper the monthly asset purchases anytime soon.”

At the meeting, the committee held short-term interest rates near zero but also indicated that it might be adjusting policy otherwise in the months ahead.

The Federal Reserve’s policymaking group kept its benchmark rate anchored in a range between 0% and 0.25%.

That was according to market expectations.

But at his post-meeting news conference, Chairman Jerome Powell indicated that committee members had held their first discussions about reducing the pace of bond purchases the central bank makes each month.

As things stand now, the Fed is buying at least $80 billion of Treasurys and $40 billion of mortgage-backed securities.

In the weeks since the meeting, several officials have said they think it’s time to work up a process on how those purchases will be scaled back and eventually eliminated – “tapering,” in Fed parlance.

The meeting summary was expected to provide further clues about committee members’ thinking on when the tapering might begin.

However, the minutes added little to the public dialogue about the pace of asset purchases, essentially indicating that officials were “talking about talking about tapering,” echoing what has become a popular market idiom, but with little other progress.

Some members did discuss the possibility of reducing mortgage purchases before Treasurys, but nothing was decided.

Along with keeping rates in check and not announcing any significant moves on tapering, the Fed members adjusted their projections for economic growth and inflation higher.

The prevailing sentiment, though, was that inflation pressures in place now would ease in coming months, but not before seeing a 3.4% surge this year.

Those upward projections helped Fed officials pull forward their first expectation for rate hikes into 2023, though market pricing now indicates at least one increase in 2022.

Members also discussed the recent moves in short-term financing markets, specifically repo operations where banks go to exchange high-quality collateral like Treasurys for reserves.

In recent weeks, the operations have seen record demand, and Fed officials generally expressed support for a standing repo facility as a backstop to ensure the market operations proceed smoothly.

The FOMC at the meeting approved a 5 basis point increase for the interest banks pay on excess reserves as well as for overnight repo operations.

https://www.cnbc.com/2021/07/07/federal ... eting.html
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REUTERS

"Fed's Bostic: Infection spike due to Delta variant could slow recovery"


By Reuters Staff

JULY 7, 2021

WASHINGTON (Reuters) - A new rise in coronavirus infections driven by the more virulent Delta variant could cause consumers to “pull back” and slow the U.S. recovery, Atlanta Federal Reserve President Raphael Bostic said, adding trends in some parts of the country were “troubling.”

“If we see spikes in infections that will likely mean that people are going to pull back from engaging in the economy and our recovery is going to be a lot smaller,” Bostic said at a virtual event hosted by the National Association of Black Journalists’ Business Journalism Task Force.

Reporting by Howard Schneider; Editing by Chris Reese

https://www.reuters.com/article/us-usa- ... SKCN2ED2HT
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Re: THE ECONOMY

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REUTERS

"Poorer US households gained nearly a year's spending from CARES Act - study"


Jonnelle Marte

July 6, 2021

July 6 (Reuters) - Federal aid distributed as part of the CARES Act boosted U.S. households' ability to pay their bills after becoming unemployed, with lower-income households seeing the biggest gains, according to research from the Federal Reserve Bank of San Francisco released on Monday.

The median household would have been able to maintain spending for an additional 15 weeks after losing employment income with help from enhanced unemployment benefits and the direct cash payments delivered as part of the relief bill, passed in March 2020 to support the economy through the COVID-19 pandemic.

Low-income households were able to maintain their spending for 43 weeks longer after losing their jobs than they could have without the support, the study found.

For higher-income households, the benefits added a median of seven weeks of spending.

Enhanced jobless benefits had the biggest impact on what researchers called "household resilience," or the ability for people to keep paying their bills after losing employment income.

The supplement, which tacked on $600 a week to state unemployment benefits from mid-April through July 2020, accounted for 85% of the change for lower-income households, they found.

Black and Hispanic households gained 19 weeks of resilience from the unemployment benefits, receiving a larger boost than white and Asian households.

Households in the South and the Midwest were less financially prepared to deal with job loss than those in the Northeast and the West, but the CARES Act narrowed some of those disparities.

The analysis focused on a sample of 10,613 heads of household and their spouses, using census bureau data.

It did not factor in the aid provided after the CARES Act lapsed, which included more direct cash payments and an extension of enhanced jobless benefits.

Reporting by Jonnelle Marte; Editing by Kevin Liffey

https://www.reuters.com/world/us/poorer ... 021-07-06/
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Re: THE ECONOMY

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FOX

"Biden promotes infrastructure deal with emphasis on early education"


WASHINGTON-DC

by: Alexandra Limon

Posted: Jul 7, 2021 / 05:31 PM EDT / Updated: Jul 7, 2021 / 05:31 PM EDT

WASHINGTON (NEXSTAR) — The Biden administration says they want to get an infrastructure deal that also invests in education and childcare for the future of the U.S. economy.

President Joe Biden visited Illinois on Wednesday to talk about what his administration has accomplished to help families so far.

Biden said investing in early education will help those children get better jobs in the future and grow the economy.

“Does anybody think in the 21st century with the changes taking place in technology across the board that 12 years of education is enough?” Biden asked.

As part of his Human Infrastructure Plan, Biden proposes providing free preschool education for all American children as well as free community college.

“That could boost earnings of high school graduates with low-wage jobs by nearly $6,000 a year on average,” Biden said.

The president said expanding child tax credits, lowering health insurance premiums and making childcare more accessible and affordable will help middle class families.

“My plan will also provide with up to 12 weeks of paid family leave for medical care,” said Biden.

“In the most difficult moments someone will ever face, no one should have to choose between a job and a paycheck and taking care of someone you love.”

In addition to long-term benefits, Biden said his infrastructure package will also provide an immediate boost.

“We’re going to make the biggest investment in roads and bridges since the construction of the interstate highway system, literally creating millions of good-paying jobs,” he said.

“If you’re really serious about this, let’s look at traditional infrastructure — roads, bridges and rural broadband which is so important to the country right now — and not muck it up with things that have nothing to do with infrastructure,” said Rep. Mike McCaul (R-TX).

Biden is still hoping to convince enough Republicans to support at least part of his proposed infrastructure deal.

But he may have to split up the plan and rely on only Democratic support to get the human infrastructure and green energy portions passed in the Senate.

https://www.wvnstv.com/washington/washi ... education/
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