Economic and jobs news thread

[weatheriscool]

US manufacturing increased in July but at slower pace
Source: AP

By MARTIN CRUTSINGER

WASHINGTON (AP) — Growth in U.S. manufacturing slowed in July amid ongoing supply-chain problems.

The Institute for Supply Management, a trade group of purchasing managers, said Monday that its index of manufacturing activity declined by 1.1 percentage points to a reading of 59.5. The index stood at 60.6 in June.

Any reading above 50 indicates growth in the manufacturing sector. July was the 14th consecutive month manufacturing has grown after contracting in April 2020 when the coronavirus triggered nationwide business shutdowns.

But the July reading showed slower growth in new orders and production. Manufacturers have struggled in recent months with supply-chain bottlenecks that have made it difficult for them to get computer chips and other necessary components for their products.

Read more: https://apnews.com/article/lifestyle-bu ... 9d1cc54cb8

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Target to offer debt-free education to front-line workers
Source: AP

By ANNE D'INNOCENZIO

NEW YORK (AP) — Target Corp. is joining a growing list of retailers and restaurant chains offering educational assistance at select online institutions for its front-line employees in a fiercely competitive job market.

The Minneapolis-based discounter said Wednesday that it plans to spend $200 million over the next four years to offer its workers free undergraduate and associate degree programs as well as certificates in business-oriented majors at select institutions such as University of Arizona and University of Denver. Textbooks will also be free.

Like a slew of other big corporate names like Walmart, Taco Bell and the Walt Disney Co., Target is teaming up with Guild Education, a Denver startup that negotiates deals between companies and colleges for the program. Target says it’s offering one of the most comprehensive programs.

Target’s program will be available this fall for more than 340,000 U.S.-based part-time and full-time students. Workers, including those on the first day on the job, can attend classes at more than 40 schools, colleges and universities. They can choose from 250 business programs like computer science, operations and business management.

Read more: https://apnews.com/article/business-edu ... 51bf03b550

[weatheriscool]

July jobs report: Economy adds back 943,000 payrolls, unemployment rate falls to 5.4%

Emily McCormick · Reporter
Fri, August 6, 2021, 8:31 AM

U.S. employers added back more jobs than expected last month, with payroll gains moving in tandem with improving economic activity and consumer mobility during the recovery.

The U.S. Labor Department released its July jobs report Friday morning at 8:30 a.m. ET. Here were the main metrics from the report, compared to consensus estimates compiled by Bloomberg:

-- Change in non-farm payrolls: 943,000 vs. +865,000 expected and a revised +938,000 in June

-- Unemployment rate: 5.4% vs. 5.7% expected and 5.9% in June

-- Average hourly earnings, month-on-month: 0.4% vs. 0.3% expected and 0.3% in June

-- Average hourly earnings, year-on-year: 4.0% vs. 3.9% expected and 3.6% in June

At 865,000, the expected number of payroll gains would mark the largest in nearly a year, with the unemployment rate falling to the lowest level since the onset of COVID-19 in March 2020, based on consensus estimates.

The economy, however, is still trying to recoup millions of jobs lost since the start of the pandemic. As of June, payrolls were still down by nearly 6.8 million since March of last year, with much of this deficit still present in the leisure and hospitality industries. These employers shed a total of 2.4 million jobs as of June since the pandemic first brought about shutdowns across the U.S.

But since the June jobs report, the Delta variant has swept across the country, exacerbating many workers' concerns over becoming infected in the workplace. Plus, difficulties finding childcare over the summer and the ongoing support of federal unemployment enhanced benefits have lingered, generating a confluence of factors that may have kept more individuals sidelined from the labor market.

{snip}

Read more: https://finance.yahoo.com/news/jobs-rep ... 22622.html

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Walmart Gives Weekly Bonuses to Keep Warehouse Workers

Most U.S. Walmart warehouses give staff extra payments to forgo vacations or work extra hours as it ramps up for holidays

By Sarah Nassauer
https://twitter.com/sarahnassauer
Sarah.Nassauer@wsj.com
Aug. 6, 2021 8:00 am ET

Walmart Inc. is offering weekly bonuses to many warehouse employees to forgo August vacations, as the country’s biggest retailer ramps up for the holiday shopping season with a tight labor market and stretched supply chains.

The warehouse worker bonus varies by location and job type. Some workers have been offered $200, others as much as $500. The majority of Walmart’s 190 U.S. warehouses are offering the weekly bonus to those who stay on the job and, in some cases, work more hours, according to a person familiar with the situation.

Walmart aims to acknowledge the efforts of employees with incentives, and provide opportunity in a competitive job market, said a Walmart spokesman. The retailer’s distribution warehouses “continue to see high volume as we are preparing for peak season,” he said. Walmart is the country’s largest private employer with 1.6 million U.S. workers, most of which are hourly workers in stores and warehouses.

Retailers and other businesses are straining to hire workers and face a global supply chain snarled by the pandemic and other factors as demand for many products and services grows.

While the peak holiday shopping season kicks off in stores in the fall, it is already the holiday shopping season in the supply chain and warehouses of large retailers. Retailers aim to have warehouse operations running smoothly ahead of the season and are already handling some holiday inventory.

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Read more: https://www.wsj.com/articles/walmart-gi ... 1628251212

[weatheriscool]

U.S. job openings surge to new record high, hiring increases

Reuters

WASHINGTON, Aug 9 (Reuters) - U.S. job openings jumped to a fresh record high in June and hiring also increased, an indication that the supply constraints that have held back the labor market remain elevated even as the pace of the economic recovery gathers momentum.

Job openings, a measure of labor demand, shot up by 590,000 to 10.1 million on the last day of June, the Labor Department said in its monthly Job Openings and Labor Turnover Survey, or JOLTS report, on Monday.

Economists polled by Reuters had forecast job openings would rise to 9.28 million in June. Vacancies increased in all four regions and the job openings rate rose to 6.5% from 6.1%.

Employers have struggled to quickly rehire workers to keep up with the speed from which the economy has emerged from the depths of the COVID-19 pandemic, which upended many businesses as restrictions and fears of the virus kept people home.

{snip}

Read more: https://www.reuters.com/business/us-job ... 021-08-09/

[caltrek]

Gold's Flash Crash: Why It is Difficult to Remain Bullish Right Now
August 11, 2021

https://www.thenationalnews.com/busines ... right-now/

Introduction:

(Bloomberg) Gold’s swift drop to the lowest since March has highlighted a tough truth for the precious metal -- there’s a growing list of reasons to be gloomy.

While Monday’s flash crash was exaggerated by a combination of technical factors and poor liquidity, the initial trigger remains true -- strong U.S. jobs data showed the world’s largest economy is well on its way to recovery. That sets the stage for the tapering of stimulus by the Federal Reserve, potentially removing one of the key drivers that helped send gold to a record last year.

A strengthening dollar, plus growing expectations that inflation will prove manageable, are adding to the headwinds. Exchange-traded funds have also cut their holdings significantly this year. Gold traded 1.9% lower at $1,730.13 an ounce by 4:33 p.m. in New York, after earlier tumbling as much as 4.1%. Bullion futures for December delivery fell 2.1% to settle at $1,726.50 on the Comex.

A strengthening dollar, plus growing expectations that inflation will prove manageable, are adding to the headwinds. Exchange-traded funds have also cut their holdings significantly this year. Gold traded 1.9% lower at $1,730.13 an ounce by 4:33 p.m. in New York, after earlier tumbling as much as 4.1%. Bullion futures for December delivery fell 2.1% to settle at $1,726.50 on the Comex.

Investors will now turn their attention first to the U.S. inflation data scheduled for later this week, and then ahead to signals from Fed officials at the Jackson Hole conference later this month. The timing of tightening by the U.S. central bank is key, and hawkish talk from Chair Jerome Powell could spell the start of a definitively bearish market for bullion.

[weatheriscool]

Real average hourly earnings for all employees decrease 0.1% in July
Source: US Bureau of Labor Statistics

Real average hourly earnings for all employees decreased 0.1 percent from June to July, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This result stems from an increase of 0.4 percent in average hourly earnings combined with an increase of 0.5 percent in the Consumer Price Index for All Urban Consumers (CPI-U).

Real average weekly earnings decreased 0.1 percent over the month due to the change in real average hourly earnings combined with no change in the average workweek.

Real average hourly earnings decreased 1.2 percent, seasonally adjusted, from July 2020 to July 2021. The change in real average hourly earnings combined with an increase of 0.6 percent in the average workweek resulted in a 0.7-percent decrease in real average weekly earnings over this period.


Production and nonsupervisory employees

Real average hourly earnings for production and nonsupervisory employees were unchanged from June to July, seasonally adjusted. This result stems from a 0.4-percent increase in average hourly earnings combined with an increase of 0.5 percent in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Real average weekly earnings decreased 0.1 percent over the month due to the unchanged real average hourly earnings being combined with no change in average weekly hours.

From July 2020 to July 2021, real average hourly earnings decreased 1.1 percent, seasonally adjusted. The change in real average hourly earnings combined with a 0.6-percent increase in the average workweek resulted in a 0.5-percent decrease in real average weekly earnings over this period.

_____________
Real Earnings for August 2021 is scheduled to be released on September 14, 2021 at 8:30 a.m. (ET).

Read more: https://www.bls.gov/news.release/realer.nr0.htm

[weatheriscool]

U.S. consumer price increases slowed in July, inflation still high

Wed, August 11, 2021, 8:37 AM · 2 min read

WASHINGTON, Aug 11 (Reuters) - U.S. consumer price increases slowed in July but inflation overall remained historically high amid continued supply-chain disruptions and stronger demand for travel-related services as economic activity rebounded.

The consumer price index increased 0.5% last month after climbing 0.9% in June, the Labor Department said on Wednesday.

In the 12 months through July, the CPI advanced 5.4%. Excluding the volatile food and energy components, the CPI rose 0.3% after increasing 0.9% in June.

The so-called core CPI rose 4.3% on a year-on-year basis after advancing 4.5% in June. Annual inflation rates have been lifted by the fading out of last spring's weak readings from the CPI calculation but those so-called base effects are leveling off.

Economists polled by Reuters had forecast the overall CPI would rise 0.5% and the core CPI would rise 0.4%.

The swiftness of the economic recovery has caused a mismatch between supply and demand in a few key sectors as businesses try to rebuild their inventories and overcome supply chain hurdles that were caused by the COVID-19 pandemic. Low interest rates and nearly $6 trillion in government relief have also bolstered demand, causing price pressures to build.

{snip}

Read more: https://finance.yahoo.com/news/u-consum ... 39247.html

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Home Prices Jumped Across the U.S. in Second Quarter

National Association of Realtors numbers show supply of existing homes for sale can’t keep up with demand

By Nicole Friedman

Home prices surged in almost every corner of the U.S. in the second quarter as robust demand continued to overwhelm the supply of homes for sale.

The median sales price for single-family existing homes was higher in the quarter compared with a year ago for 182 of the 183 metro areas tracked by the National Association of Realtors, the association said Thursday. In 94% of those metro areas, median prices rose by more than 10% from a year earlier.

Nationwide, the median single-family existing-home sales price rose 22.9% in the second quarter to $357,900 from a year ago, a record in data going back to 1968, NAR said.

Home prices have climbed in the past year as low interest rates and increased remote work spurred new homebuying demand. At the same time, the inventory of homes on the market has dropped as potential sellers canceled or delayed their plans to move. The homes that do hit the market sell quickly, often after a bidding war.

Still, the homebuying frenzy has shown signs of a slowdown in recent months. High prices have attracted more sellers to the market and pushed some buyers to the sidelines.

Read more: https://www.wsj.com/articles/home-price ... 1628777839

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Consumer Sentiment in U.S. Plunges to Lowest Since 2011

By Jordan Yadoo
August 13, 2021, 10:00 AM EDT Updated on August 13, 2021, 10:19 AM EDT

-- University of Michigan index slumps by 11 points to 70.2
-- Concerns grow about virus, outlook for economy, income

U.S. consumer sentiment fell in early August to the lowest level in nearly a decade as Americans grew more concerned about the economy's prospects, inflation and the recent surge in coronavirus cases.

The University of Michigan's preliminary sentiment index fell by 11 points to 70.2, the lowest since December 2011, data released Friday showed. The figure fell well short of all estimates in a Bloomberg survey of economists.

Consumer sentiment in U.S. plunges on concerns about virus, economic prospects

The slump in confidence risks a more pronounced slowing in economic growth in coming months should consumers rein in spending. The recent deterioration in sentiment highlights how rising prices and concerns about the delta variant's potential impact on the economy are weighing on Americans.

"Consumers have correctly reasoned that the economy's performance will be diminished over the next several months, but the extraordinary surge in negative economic assessments also reflects an emotional response, mainly from dashed hopes that the pandemic would soon end," Richard Curtin, director of the survey, said in the report.

Following the data, the yield on 10-year Treasury notes fell, the Bloomberg dollar index traded at its lows for the day, and the S&P 500 lost ground.

The expectations gauge plummeted almost 14 points to 65.2, the lowest since October 2013. A measure of consumers' outlook for the economy over the coming year soured, falling the most since the onset of the pandemic in March 2020.

Only 36% of respondents expect a decline in the jobless rate, down from 52% the prior month, despite record job openings. Consumers also became decidedly downbeat about their income prospects. The gauge of expected personal finances fell to a seven-year low.

{snip}

-- With assistance by Chris Middleton, and Benjamin Purvis

Read more: https://www.bloomberg.com/news/articles ... since-2011

[weatheriscool]

Aldi Plans to Hire 20,000 U.S. Workers in Holiday-Season Ramp-Up
New hires will earn average of $15 an hour for store jobs and $19 an hour for warehouse jobs
Employers Competing for Workers Turn to Signing Bonuses and Freebies

By Matt Grossman
https://twitter.com/mattgrossman
matt.grossman@wsj.com
Updated Aug. 16, 2021 9:48 am ET

Discount supermarket chain Aldi aims to hire more than 20,000 workers in the U.S. this year as its network grows and as it prepares for holiday shopping, the company said Monday.

Jobs that Aldi is hiring for include cashiers, stockers and associates at its more than 2,100 American stores and its 25 warehouses. The company will be drawing from a tight U.S. labor market in which openings have recently exceeded the number of people looking for work.

Against that backdrop, wages have been rising, including for low-skilled workers. Following a recent internal wage rise at Aldi, workers in the new positions will earn a national average of $15 an hour for store jobs and $19 an hour for warehouse jobs, the company said. The jobs come with healthcare and retirement plans and paid time off, Aldi said.

Other large retailers have cited hiring as a challenge in recent months.

“We’re seeing some pressure on labor in certain markets and in some of our distribution centers,” Albertsons Cos. Chief Executive Vivek Sankaran told analysts on a call last month. “The way we’re seeing the pressure there is more from turnover and the ability to fill jobs.”

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Read more: https://www.wsj.com/articles/aldi-plans ... 1629120174

[weatheriscool]

Automobile shortages, spending shift to services hurt U.S. retail sales

Lucia Mutikani
Tue, August 17, 2021, 8:38 AM · 4 min read

WASHINGTON (Reuters) - U.S. retail sales fell more than expected in July as shortages depressed motor vehicle purchases and the boost to spending from the economy's reopening and stimulus checks faded, suggesting a slowdown in economic growth early in the third quarter.

The weak sales reported by the Commerce Department on Tuesday also reflected a rotation in spending back to services from goods. Retail sales mostly capture the goods component of consumer spending, which accounts for a smaller share, with bulky services such as healthcare travel and hotel accommodation making up the rest.

The school year gets into full swing later in August and most education districts are reverting to in-person learning. As such, consumer spending is likely to remain strong and keep the economy growing, though rising COVID-19 cases and a recent plunge in consumer sentiment are wild cards.

{snip}

Retail sales dropped 1.1% last month. Data for June was revised up to show retail sales increasing 0.7% instead of rising 0.6% as previously reported. Retail sales are 17.2% above their pre-pandemic level.

Economists polled by Reuters had forecast retail sales slipping 0.3%. Sales increased 15.8% compared to July last year.

Receipts at auto dealerships fell 3.9% after declining 2.2% in June. Motor vehicle production has been hampered by a global shortage of semiconductors.

{snip}

Read more: https://finance.yahoo.com/news/u-retail ... 09800.html

[caltrek]

Surge in Number of New Homes Under Construction
by Sam Ro
August 19, 2021

https://www.axios.com/home-construction ... 9f3d3.html

Introduction:

(Axios) The number of new homes under construction has soared — to levels not seen since the housing market crash 14 years ago.

Why it matters: Home prices have been surging as the demand for houses has outpaced supply. Homebuilders are doing what they can to keep up, but supply chain bottlenecks have led some to turn away buyers as they try to catch up.

Driving the news: There were 689,000 single-family homes under construction in July, the highest number since July 2007.

• "This is clearly a positive sign given the remarkably low levels of inventory on the market," Mortgage Bankers Association chief economist Mike Fratantoni says.

[caltrek]

and while we are on the subject of new home construction:

Diamond Age Raises Eight Million Dollars to Speed Up Home Construction With 3D Printing and Robot Arms
by Brian Heater
August 19, 2021

https://techcrunch.com/2021/08/19/diamo ... obot-arms/

Introduction:

(TechCrunch) Bay Area-based Diamond Age this week announced that it has raised $8 million. The seed round is led by Prime Movers Lab and Alpaca VC and features a slew of additional firms, including Dolby Family Ventures, Calm Ventures, Gaingels, Towerview Ventures, GFA Venture Partners and Suffolk Construction.

The startup looks to put a slew of key emerging technologies to work in service of building houses with fewer workers in a significantly truncated time frame. Diamond Age claims that when, fully realized, its tech will be able to reduce manual human labor by 55% and shrink the construction time on a single family home from nine months to 30 days. Part of this funding will go toward putting the processes in place to construct a 1,100-square-foot “demonstration house” as proof of concept.

“We need to build high-quality affordable single-family homes for the next generation striving for the American dream,” co-founder and CEO Jack Oslan said in a release, “and the only way we can solve this problem is with automation.”

Specifically, the company relies on robotic and 3D printing solutions. The former involves a set of 26 different robotic arm attachments to assist with the construction. That tech is coupled with a gantry-based 3D printing technology designed to construct interior and exterior walls for the structure.

Specifically, the company is looking to target the housing crunch in its Bay Area backyard. The systems will be available to construction companies through a RaaS (robotics as a service) rental model. Pricing specifics for the system have not been revealed.

[weatheriscool]

Existing-home sales jump 2% in July as inventory of properties for sale grows

Published: Aug. 23, 2021 at 10:05 a.m. ET

By Jacob Passy

Existing-home sales rose 2% in July from the month prior, the National Association of Realtors reported Monday.(1) Sales occurred at a seasonally-adjusted annual rate of 5.99 million. Compared to July 2020, sales were up 1.5%. The total inventory of homes for sales rose 7.3% on a monthly basis, though it's still down significantly from a year ago.

{that's all for now}

(1) https://www.nar.realtor/research-and-st ... home-sales

Read more: https://www.marketwatch.com/story/exist ... 2021-08-23

[caltrek]

Valuations for Venture-backed Companies at Record Highs
by Dan Primack
August 23, 2021

https://www.axios.com/vaulations-ventur ... d5857.html

Introduction:

(Axios) Valuations for U.S. venture-backed companies are at record highs, per data released this morning by PitchBook.

Between the lines: It's the new normal, in which nontraditional investors are traditional, unicorns are pigeons and startups are in the driver's seat.

Inside the numbers: Valuation creep can be seen across all stages of the VC ecosystem, from seed to pre-IPO. It's also showing up in both the medians and averages, and also across quartiles, reflecting how this isn't just a few big deals skewing the data.

• Early-stage valuations hit all-time records in Q2 2021 of $50 million (median) and $105.4 million (average).

• Late-stage valuations also hit new highs, with the trendline suggesting that average late-stage valuations could top $1 billion by year-end

[weatheriscool]

U.S. economy grew slightly faster 6.6% pace in second quarter, new GDP figures show

Published: Aug. 26, 2021 at 8:52 a.m. ET
By Jeffry Bartash

The numbers: The U.S. grew a bit faster in the spring than previously estimated, but not enough to change the underlying growth trend in an economy that’s recovered quite rapidly from the pandemic.

Gross domestic product, the official scorecard for the U.S. economy, rose at a revised 6.6% annual pace in the second quarter, the government said Thursday.

The slight increase in GDP reflected somewhat stronger consumer spending and U.S. exports than initially reported.

The revised GDP report also included the first look at corporate profits in the second quarter. Adjusted pretax profits jumped at a 9.2% annual rate and suggest businesses have plenty of capital to continue to invest and hire.

Indeed, the economy was still expanding at a robust pace in the third quarter even as the delta variant of the coronavirus flared up and government stimulus had mostly evaporated.

Economist polled by the Wall Street Journal estimate third-quarter GDP will increase by 7%.

{snip}

Read more: https://www.marketwatch.com/story/u-s-e ... 1629982344

[caltrek]

American Manufacturers Have Some Work to Do Due to Order Backlogs
by Sam Ro
August 26, 2021

https://www.axios.com/american-manufact ... d99aa.html

Introduction:

(Axios) Orders for durable goods stalled unexpectedly in July. But manufacturers have plenty of backlogs to work through.

Why it matters: There are a lot of businesses across the economy with empty shelves as they wait for manufacturers to ship the goods. This has been crimping sales while also driving inflation.

Order backlogs offer a snapshot of how much stuff manufacturers have yet to deliver.

By the numbers: Unfilled orders — the backlog — of manufactured goods grew 0.3% month over month to $1.23 trillion in July, according to Census Bureau data released Wednesday.

This was the sixth consecutive month of gains.

[weatheriscool]

US home prices soar at record pace in June
Source: AP

By CHRISTOPHER RUGABER

WASHINGTON (AP) — U.S. home prices jumped by a record amount in June as homebuyers competed for a limited supply of available houses, the latest evidence that the housing market remains red-hot.

The S&P CoreLogic Case-Shiller 20-city home price index soared 19.1% in June compared with a year earlier, the largest increase on records dating back to 2000. The annual price gains in June were higher in all 20 cities than they were in May. Prices are now at record highs in 19 of the 20 cities, with the exception of Chicago.

“The last several months have been extraordinary not only in the level of price gains, but in the consistency of gains across the country,” said Craig Lazzara, managing director of index investment strategy at S&P DJI.

There are signs that the high prices are cooling sales a bit. Sales of existing homes rose 1.5% in July from a year earlier, a separate report showed last week. That’s a much slower pace than the previous month. And the number of contracts signed to buy homes, a leading indicator of final sales, has fallen for two straight months.

Read more: https://apnews.com/article/business-pri ... 32c38c673d

[weatheriscool]

August private payrolls rose by 374,000, missing estimates: ADP

Emily McCormick · Reporter
Wed, September 1, 2021, 8:17 AM·3 min read

U.S. private employers added back far fewer jobs than expected in August as the Delta variant's spread began to take its toll on the pace of the labor market's recovery.

Private payrolls rose by 374,000 in August, ADP said in its closely watched monthly report on Wednesday. Consensus economists were looking for private payrolls to grow by 625,000, according to Bloomberg data. In July, private sector jobs increased by 326,000, according to the firm's revised monthly print.

By sector, high-contact service-providing areas again posted the biggest private payroll gains, with leisure and hospitality jobs rising by 201,000. This was followed by a wide margin by education and health services positions with a gain of 59,000 jobs. Professional and business services payrolls also rose by 19,000.

In the goods-producing sector, overall payrolls increased by 45,000, led by construction industries with job gains of 30,000. Mining and manufacturing jobs each also rose, but by much smaller sums.

ADP's report adds to a slew of mixed labor market data out for August, when a resurgence in COVID-19 cases began to stem the pace of the recovery after a strong start to the summer. Last week, IHS Markit's latest purchasing managers' indices showed that employment activity in both the domestic services and manufacturing sectors decelerated sharply in August. And consumer confidence indices have also retreated, raising the specter of a slowdown in hiring if consumers' propensity to spend deteriorates and demand for goods and services pulls back.

Still, however, the overall trend in the data has pointed toward an ongoing, if slowing, recovery. The U.S. Labor Department's "official" monthly jobs report on Friday is expected to reaffirm that message, with job growth still coming in well above pre-pandemic levels for August but pulling back compared to July.

{snip}

Read more: https://finance.yahoo.com/news/adp-priv ... 01411.html