It is becoming abundantly clear that the minimum wage has gone the way of buggy whip and that 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 ... READ MORE >
Coronavirus
Canada’s employment is back to pre-pandemic levels
Most of Canada’s employment statistics in September returned to pre-pandemic levels, clear good news of a recovery, according to data released by Statistics Canada on Friday. Canada added an encouraging 157,000 jobs in September, bringing its total employment to just over the February 2020 level. In a ... READ MORE >
September U.S. jobs report: One-time factors dampen hiring as unemployment rate falls to 4.8%
Widespread disruption to supply chains, the impact of Hurricane Ida, modest delays in the reopening of schools and day care centers and seasonal noise in the employment data all combined to dampen hiring in September. The United States added 194,000 jobs on the month, the Labor Department reported ... READ MORE >
Initial jobless claims fell more than expected as labor market gained momentum
First-time claims for jobless benefits—a proxy for layoffs—declined more than expected for the week ending Oct. 2 in a sign that the labor market continues to be tight and that layoffs are not a major issue in the economy. The headline claims for newly unemployed workers posted a significant 10.4% drop ... READ MORE >
In a possible sign of things to come, looming debt-ceiling crisis induces a flight to cash
The front end of the Treasury curve is flashing red because of the possibility of another black swan event—the threat of default on Treasury securities on or around Oct. 18. Investors have begun dumping their safe-haven assets in favor of holding cash, causing interest rates on Treasury bills with ... READ MORE >
ADP private payrolls report: Strong rebound, but not for middle market firms
An early estimate of nonfarm private employment showed a surprisingly strong rebound in September after a disappointing August, according to data released by ADP on Wednesday. The headline monthly change in employment—published in advance of the Bureau of Labor Statistics' more comprehensive jobs ... READ MORE >
U.S. September jobs preview: Expect a modest gain amid special factors and seasonal adjustments
The U.S. September employment report will most likely feature a net gain in total employment of 375,000 and a decline in the unemployment rate to 5.1% when it is released on Friday. The report will most likely reflect a mix of constraints in hiring related to Hurricane Ida and the reopening of ... 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 Services Purchasing Managers’ Index inched up by 0.2 percentage points to 61.9% in September—the 16th consecutive month of expansion, according to data released Tuesday by the Institute for Supply Management. Business activity, new orders ... 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, according to Commerce Department data released on Tuesday. This put the trade deficit back to June's level of $73.23 billion—the previous record—and ... READ MORE >
Global natural gas prices hit record as middle market girds for difficult winter
Global natural gas prices have climbed to record highs amid soaring demand fueled by the reopening of the economy and tight supplies. As power outages halt manufacturing and threaten climate commitments, businesses and consumers should brace themselves for a difficult winter. Middle market firms ... READ MORE >