A new de-facto entry-level wage of $15 per hour is becoming the national standard in the private sector. The shock to the economy unleashed by the pandemic and the response by workers have radically transformed the wage-earning landscape. … READ MORE >
Initial jobless claims fell more than expected as labor market gained momentum
First-time claims for jobless benefits—a proxy for layoffs—posted a significant 10.4% drop for the week ending Oct. 2 to 326,000, in a sign that the labor market continues to be tight. … READ MORE >
ADP private payrolls report: Strong rebound, but not for middle market firms
Nonfarm private employment showed a surprisingly strong rebound in September after a disappointing August, according to data released by ADP on Wednesday. … READ MORE >
Services PMI grew faster in September as prices and demand remained elevated
In a sign of the service sector’s continuing strength, the Service Purchasing Managers’ Index inched up by 0.2 percentage points to 61.9% in August – the 16th consecutive month of expansion, according to data released Tuesday by the Institute for Supply Management. … READ MORE >
Chart of the day: U.S. trade deficit reached record high in August
The U.S. trade deficit rose to a record $73.25 billion in August, up from $70.3 billion in July, as both goods and service trade balances declined. … READ MORE >
Americans spent more on building homes than on building anything else for the first time in 14 years
In another sign of the housing market’s continued strength, U.S. spending on residential buildings—both private and public—increased by 0.4% in August to $795.5 billion, while nonresidential spending declined by 0.4% to $788.6 billion, on a seasonally adjusted annual rate. … READ MORE >
Workforce transformation: The American labor market, firms and the post-pandemic economy
Widespread labor shortages are hampering companies’ ability to capitalize on an economy that is expanding as the country recovers from a devastating pandemic. Firms will not experience a return to the way things were in the labor markets before the pandemic. … READ MORE >
Strong demand boosted manufacturing growth as PMI reached a four-month high
The headline manufacturing Purchasing Managers’ Index increased by 1.2 percentage points in September, to 61.1%, continuing to indicate overall expansion of the manufacturing sector. … READ MORE >
Spending posted strong gains in August, a boost from the enhanced child tax credit
Personal spending rose by 0.8% in August, following a downwardly revised 0.1% in July and showing the strong impact of the extra incomes from the enhanced child tax credit that began in July. … READ MORE >
Initial jobless claims rose for third straight week as millions lost federal pandemic benefits
First-time jobless claims rose to 362,000 for the week ending Sept. 25 as enhanced federal unemployment benefits ended, according to government data released Thursday. … READ MORE >