The September jobs report, released Friday, shows fewer jobs added to the U.S. economy than expected. Though tens of thousands of more jobs could be lost in October with the federal government so far failing to bail out the airline industry, the chief economist for the National Economic Council at the White House Joe LaVorgna said there are signs the economy is in good standing, and its “self-sustaining” nature will help avoid disruptions to further recovery.
“The Atlanta Fed, just yesterday, revised up its estimate for Q3 GDP growth by almost 3 percent to 35 percent, which actually now keeps us on track, if you look then at some private sector forecasts, to recoup all of the pandemic-related output early next year,” he stated, acknowledging the recent positive COVID-19 diagnosis for President Trump and the first lady, while still promoting a positive economic outlook.
Last month, the U.S. added 661,000 jobs but came short of the Dow’s 800,000 projection; however, LaVorgna alleged that those figures were not a sign of lost momentum in economic recovery.
“The fact is, the economy has out surpassed consensus expectations by a mile,” he said.
“We’ve generated 11.4 million non-farm payroll jobs since April. We’ve actually generated 14.2 million jobs in the household survey since April, so we've got some very good numbers,” LaVorgna continued
While fewer jobs were added than expected, the U.S. unemployment rate beat projections, coming in at 7.9 percent. LaVorgna said the data showed job growth in every major industry but did note weakness in government jobs due to educators not returning to work like usual due to coronavirus adjustments.
When broken down by ethnicity, the data also showed that 12.1 percent of Black Americans were jobless. LaVorgna said while the White House would like to see unemployment drop across all groups, Black workers, in particular, have made financial strides.
“A couple of weeks ago we had detailed census data that showed record income gains in 2019 for all ethnic groups, with Black Americans, in particular, doing extraordinarily well,” he explained.
As 7.9 percent of Americans go without a job and businesses struggle to stay afloat, another round of stimulus funding is still possible, but according to LaVorgna, more negotiations will need to take place before a deal is made.
“If we can get that stimulus, if the Democrats move a little bit more to the center, then that’s going to be great because we’ll have extra confidence the economy will be even 'boomier,' if you will,” he told Cheddar.
Yesterday, House Democrats approved a $2.2 trillion stimulus plan that includes another round of $1,200 payments to American households, a renewed Payroll Protection Program for businesses, renewed enhanced unemployment benefits, and relief funds for state and local governments.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.
