Following 113 straight months of job gains, the U.S. economy shed 701,000 jobs in March, providing a glimpse of things to come. The internal dynamics inside the report are a sober, clear-eyed precursor to what is going to be the largest bloodletting in the labor market since the 1929-1933 period of the ... READ MORE >
coronavirus
The state-by-state toll of the coronavirus shutdown on the labor market
The widespread layoffs of American workers worsened in the third week of the coronavirus shutdown, with all states (with the exception of the Virgin Islands) now having reported a significant increase in initial jobless claims at some point during the three-week period. This strongly suggests that ... READ MORE >
How the real estate sector can weather an economy that has all but ground to a halt
In the real estate industry, the first of the month holds a certain significance – after all, it’s when rent payments are due. But this April 1 is quite different, coming amid the steep economic downturn caused by the coronavirus pandemic. Landlords are girding for the very real prospect that the ... READ MORE >
Tectonic shift in initial jobless claims implies 10.1% unemployment rate
The tectonic shifts in the American labor market continued during the week ending March 28 as first-time jobless claims increased by a record 6.64 million, which implies a real-time unemployment rate of 10.1% at a minimum. Over the past two weeks, the pace of firings in the economy has surged as the ... READ MORE >
How to become a qualified lender under the Paycheck Protection Program
(Note: this article was originally published on April 1, and was most recently updated on May 5.) The federal government recently approved the CARES Act, a $2.2 trillion fiscal stimulus meant to address the economic damage of the coronavirus. Included in that package is the Paycheck Protection Program, ... READ MORE >
What middle market companies can learn from Nike about managing disruption
Last week, Nike surprised investors in its earnings report when it revealed that sales in China had declined by only 5% for the quarter ending February 28. While China is a key growth market for the apparel and footwear giant, the decrease demonstrated how well Nike had navigated a nationwide shutdown of ... READ MORE >
Initial jobless claims preview: Expect another big increase
Labor market dynamics set off by the coronavirus crisis are moving faster than economists can capture with our linear models inside what is a profoundly nonlinear, disease-induced change in the economy. Humility and not hubris is the order of the day for what will be another turbulent week and for ... READ MORE >
The swift and significant monetary and fiscal policy responses to the coronavirus
March has been a month for the ages – one that fiscal and monetary policymakers will never forget. Congress put forward roughly $2.2 trillion, or equal to 11.4% of gross domestic product, in fiscal aid to address current and coming economic difficulties around the country. That boost will most likely ... READ MORE >
RSM Manufacturing Outlook Index gives another sign of recession
It’s time to talk about the elephant in the room. The RSM Manufacturing Outlook Index took a nosedive in March, to levels ordinarily reserved for recessions. The index reversed the gains of the first two months of the year and dropped more than two standard deviations below levels associated with normal ... READ MORE >
With the CARES Act, online lenders are poised to become mainstream
The $2 trillion CARES Act promises to help many American businesses, individuals and states overcome the severe impact from the coronavirus pandemic. The 883-page document covers a range of industries, updates portions of tax reform and provides financial support for businesses and individuals. But one ... READ MORE >