Economic and jobs news thread

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Over 33,000 Pennsylvania Workers and Retirees' Pensions Saved by Biden's American Rescue Plan

President Joe Biden will walk the picket line in Michigan with striking United Auto Workers on Tuesday and continue his campaign as one of the most pro-labor union presidents in US history. It’ll be the first time in American history that a sitting president joined a picket line.

One of Biden’s signature pieces of legislation that benefited union members was the American Rescue Plan. Tucked into the bill was the Butch Lewis Act, which helped save the pensions of two to three million workers and retirees.

The provision funds the Pension Benefit Guaranty Corporation (PBGC), a federal agency tasked with protecting the pensions of more than 33 million workers and retirees. It was set to go insolvent by 2026 but is now able to provide an estimated $74-$91 billion in funding.

Earlier this month, US Sen. Bob Casey (D-Pennsylvania) announced that 108 members from the Plasterers and Cement Masons Local 94, who are based in Camp Hill, had their pensions saved thanks to the American Rescue Plan. Thanks to this legislation, 33,138 Pennsylvania workers and retirees will see their pensions fully funded..

https://keystonenewsroom.com/story/over ... scue-plan/

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US Q2 GDP growth unrevised at 2.1%; weekly jobless claims edge higher

Reuters
September 28, 2023 12:48 PM UTC Updated ago

WASHINGTON, Sept 28 (Reuters) - The U.S. economy maintained a fairly strong pace of growth in the second quarter, the government confirmed on Thursday, and appears to have gathered momentum this quarter amid a resilient labor market.

Gross domestic product increased at an unrevised 2.1% annualized rate last quarter, the Commerce Department said in its third estimate of GDP for the April-June period on Thursday. Economists polled by Reuters had expected GDP for the second quarter would be unrevised.

Growth for the first quarter was revised up to a 2.2% rate from the previously reported 2.0% pace.

The government also revised GDP data from 2017 to incorporate new source information and made some statistical improvements such as the treatment of regulated investment companies and real estate investment trusts.

GDP was revised down in each of the first quarters of 2020, 2021 and 2022 mostly due to downgrades to consumer spending growth. But the Bureau of Economic Analysis (BEA), the agency that constructs the GDP report, said there was no evidence that residual seasonality, which plagued the GDP data several years ago, was an issue.

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Read more: https://www.reuters.com/markets/us/us-q ... 023-09-28/

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The Fed's benchmark inflation gauge dipped lower in August

By Alicia Wallace, CNN
Updated 8:36 AM EDT, Fri September 29, 2023

Minneapolis (CNN) -- The Federal Reserve's preferred inflation gauge showed price increases cooled considerably last month, according to new Commerce Department data released Friday that also showed a slowdown in consumer spending.

The core Personal Consumption Expenditures index, a closely watched inflation measure that excludes gas and food prices, rose 3.9% for the 12 months ended in August. It's the lowest annual increase that index has seen in two years and is a positive step toward the Fed's target of 2% inflation. ... On a monthly basis, core PCE grew 0.1%.

The overall PCE index, which includes the more volatile food and energy categories, increased 0.4% from July and 3.5% annually. That's an acceleration from the respective 0.2% and 3.3% rates seen in July; however, it also was largely expected: Gas prices heated up during the month.

Economists estimated that the headline PCE index would rise 0.5% monthly and 3.5% annually, according to Refinitiv. ... The Commerce Department's latest Personal Income and Outlays report also showed that consumers pulled back their spending in August and incomes ramped up by 0.4%.

This story is developing and will be updated.

Read more: https://www.cnn.com/2023/09/29/economy/ ... index.html

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August job openings top 9.6 million, more than expected as labor market remains strong
Source: CNBC

Published Tue, Oct 3 2023 10:06 AM EDT Updated 6 Min Ago

Employment vacancies at U.S. businesses unexpectedly surged in August, a sign that the labor market remains tight and robust despite the Federal Reserve’s efforts to slow the economy. Job openings totaled 9.61 million for the month, a jump of nearly 700,000 from July and well above the Dow Jones estimate for 8.8 million, the Labor Department said Tuesday in its monthly Job Openings and Labor Turnover Survey.

Hires, however, rose only modestly, moving up to 5.857 million, an increase of just 35,000.Much of the increase in openings came in professional and business services, which showed a burst of 509,000. Stocks fell following the report as a tighter labor market could put more pressure on the Fed to keep interest rates elevated. The Dow Jones Industrial Average most recently was off more than 260 points on the session.

The Fed follows the JOLTS report closely for signs of labor slack.

Openings had been on the decline for the last several months, indicating that the central bank’s interest rates hikes were beginning to have an impact on a labor market that had been hit by a large supply-demand mismatch in which openings had outnumbered available workers 2 to 1. The ratio now is down to 1.5 to 1, following an increase of workers classified as unemployed in August.

Read more: https://www.cnbc.com/2023/10/03/august- ... trong.html

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US private payrolls growth slows sharply in September, ADP report shows

Reuters
October 4, 20238:28 AM EDT Updated an hour ago

WASHINGTON, Oct 4 (Reuters) - U.S. private payrolls increased far less than expected in September, but that likely exaggerates the pace of slowdown in the labor market. ... Private payrolls rose by 89,000 jobs last month, the ADP National Employment Report showed on Wednesday. Economists polled by Reuters had forecast private employment would rise by 153,000. Data for August was revised slightly higher to show 180,000 jobs added instead of the previously reported 177,000.

The labor market is gradually easing as it adjusts to 525 basis points worth of interest rate increases from the Federal Reserve since March 2022. The government reported on Tuesday that there were 1.51 job openings for every unemployed person in August, though unfilled positions increased by the most in two years. A survey from the Conference Board last week showed consumers' views of the labor market had improved in September.

The ADP report, jointly developed with the Stanford Digital Economy Lab, was published ahead of the release on Friday of the Labor Department's more comprehensive and closely watched employment report for September. ... The ADP report has not been a reliable gauge in trying to predict the private payrolls count in the employment report.

According to a Reuters survey of economists, the Bureau of Labor Statistics is expected to report that private payrolls increased by 160,000 jobs in September. Including government employment, total nonfarm payrolls are forecast to have risen by 170,000 jobs last month after increasing by 187,000 in August.

Reporting by Lucia Mutikani; Editing by Paul Simao and Andrea Ricci

Read more: https://www.reuters.com/markets/us/us-p ... 023-10-04/

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Payrolls increased by 336,000 in September, much more than expected
Source: CNBC

Published Fri, Oct 6 2023 8:31 AM EDT Updated 18 Min Ago

Job growth was stronger than expected in September, a sign that the U.S. economy is hanging tough despite higher interest rates, labor strife and dysfunction in Washington.

Nonfarm payrolls increased by 336,000 for the month, better than the Dow Jones consensus estimate for 170,000, the Labor Department said Friday in a much-anticipated report. The unemployment rate was 3.8%, compared to the forecast for 3.7%.



Stock market futures turned sharply negative following the report and Treasury yields jumped. Dow futures were down more than 250 pints (sic), while the 10-year Treasury yield soared 0.17 percentage point to 4.87%, up around its highest levels since the early days of the financial crisis.

Investors have been on edge lately that a resilient economy could force the Federal Reserve to keep interest rates high and perhaps even hike more as inflation remains elevated. Wage increases, however, were softer than expected, with average hourly earnings up 0.2% for the month and 4.2% from a year ago, compared to respective estimates for 0.3% and 4.3%.

Read more: https://www.cnbc.com/2023/10/06/jobs-re ... -2023.html

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Wholesale inflation rose 0.5% in September, more than expected

KEY POINTS
* The producer price index increased 0.5% for September, against the Dow Jones estimate for a 0.3% rise.
* Excluding food and energy, core PPI was up 0.3%, versus the forecast for 0.2%.
* Inflation pressures came primarily from final demand goods, which surged 0.9% on the month, while services increased 0.3%.

A measure of wholesale prices rose more than expected in September, indicating simmering inflation pressures for the U.S. economy. ... The producer price index, which measures costs for finished goods that producers pay, increased 0.5% for the month, against the Dow Jones estimate for a 0.3% rise, the Labor Department reported Wednesday. That was less than the 0.7% increase in August.

Excluding food and energy, the core PPI was up 0.3%, versus the forecast for 0.2%. Excluding food, energy and trade services, the index rose 0.2%, in line with the estimate. ... Markets showed only a mild reaction to the PPI release, with stock futures off slightly and Treasury yields off their lows though still negative on most longer-duration issues.

Inflation pressures came primarily from final demand goods, which surged 0.9% on the month, while services increased 0.3%. Much of the goods prices increase came from gasoline, which jumped 5.4%. ... On the services side, prices for final demand services less trade, transportation and warehousing rose 0.3%, while final demand trade services costs increased 0.5%. Also in the services category, the costs for deposit services at commercial banks surged 13.9%.

On a year-over-year basis, the headline PPI increased 2.2%, the largest move since April. The 12-month pace had slowed to as low as 0.2% in June but has been on the rise since. ... Markets look at the PPI as a leading indicator for inflation, as it gauges a wide variety of costs for pipeline goods that feed to consumer products. On Thursday, the Labor Department will release its more closely watched consumer price index, which is expected to show a slight easing in the pace of inflation.

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Read more: https://www.cnbc.com/2023/10/11/ppi-september2023-.html

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Consumer prices rose 0.4% in September, more than expected
Source: CNBC

Published Thu, Oct 12 20238:31 AM EDTUpdated 4 Min Ago

Prices that consumers pay for a wide variety of goods and services increased at a slightly faster-than-expected pace in September, keeping inflation in the spotlight for policymakers. The consumer price index, a closely followed inflation gauge, increased 0.4% on the month and 3.7% from a year ago, according to a Labor Department report Thursday. That compared with respective Dow Jones estimates of 0.3% and 3.6%.

Excluding volatile food and energy prices, the so-called core CPI increased 0.3% on the month and 4.1% on a 12-month basis, both exactly in line with expectations. Policymakers place more weight on the core numbers as they tend to be better predictors of long-term trends.

In keeping with recent trends, shelter costs were the main factor in the inflation increase. The index for shelter, which makes up about one-third of the CPI weighting, accelerated 0.6% for the month and 7.2% from a year ago. On a monthly basis, shelter accounted for more than half the rise in the CPI, the Labor Department said.

Energy costs rose 1.5%, including a 2.1% pickup in gasoline prices and 8.5% in fuel oil, and food was up 0.2% for the third month in a row. On a 12-month basis, food costs climbed 3.7%, including a 6% increase for food away from home, while energy costs were off 0.5%.

Read more: https://www.cnbc.com/2023/10/12/cpi-september-2023.html

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California Gov. Newsom signs law to slowly raise health care workers' minimum wage to $25 per hour
Source: AP

By ADAM BEAM
Updated 10:22 PM CDT, October 13, 2023

SACRAMENTO, Calif. (AP) — California will raise the minimum wage for health care workers to $25 per hour over the next decade under a new law Democratic Gov. Gavin Newsom signed Friday.

The new law is the second minimum wage increase Newsom has signed. Last month, he signed a law raising the minimum wage for fast food workers to $20 per hour.

Both wage increases are the result of years of lobbying by labor unions, which have significant sway in the state’s Democratic-dominated Legislature.

“Californians saw the courage and commitment of healthcare workers during the pandemic, and now that same fearlessness and commitment to patients is responsible for a historic investment in the workers who make our healthcare system strong and accessible to all,” said Tia Orr, executive director of the Service Employees International Union California.

Read more: https://apnews.com/article/california-h ... bc7ef9b452

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Retail sales rose 0.7% in September, much stronger than estimate
Source: CNBC

Published Tue, Oct 17 2023 8:32 AM EDT Updated 3 Min Ago

Consumers showed surprising strength in September, boosting retail sales well above expectations despite high interest rates and worries over a weakening economy.

Retail sales rose 0.7% on the month, well above the 0.3% Dow Jones estimate, according to the advance report the Commerce Department released Tuesday. Gas station sales helped propel the headline number, rising 0.9% as prices at the pump accelerated.

Excluding autos, sales were up 0.6%, also well ahead of the forecast for just 0.2%. The so-called control group, which strips out items such as auto dealers, gas stations, office supply stores, mobile homes and tobacco stores and is used for the department’s GDP calculation, rose 0.6% as well.

The numbers are not adjusted for inflation, so they indicate that consumers more than kept up with price increases. The consumer price index, released last week, showed headline inflation up 0.4% in September. On a year-over-basis, sales rose 3.8%, compared to the 3.7% increase for CPI.

Read more: https://www.cnbc.com/2023/10/17/retail- ... 2023-.html

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