Show an ad over header. AMP

July's jobs report could be an inflection point for the coronavirus recovery

Data: Axios/Ipsos poll; Chart: Axios Visuals

Even if Friday's jobs report shows a big number, it is becoming clear hiring slowed and likely even reversed course in July and real-time indicators suggest the employment situation worsened into August.

Driving the news: Payroll processor ADP's monthly jobs report showed private companies added 167,000 jobs last month, well below the 1.2 million expected by economists and far below June's 4.8 million jobs added.


Why it matters: "We believe the labor market reached an inflection point in July, starting what will likely be a slower phase of recovery," economists at Nomura wrote in a Wednesday note to clients following the release of the ADP survey.

Where it stands: Additionally, new data shows that workers who lost their jobs and were brought back in May and June are again being laid off or warned they soon could be.

  • A survey by Cornell University and analytics firm RIWI released Tuesday found 31% of returning workers reported being laid off a second time, and another 26% say their employer warned them they may be laid off again.
  • While "57% of those initially laid off/furloughed reported being put back on payroll sometime after their initial dismissal, 39% of such respondents say they were put back on payroll yet were not asked to return to actual work."

The intrigue: That survey's findings support the thesis that jobs gains and the decline in unemployment seen in the May and June did not reflect workers "getting back to the business of actually working — but were rather being 're-payrolled,' in many instances in order to meet the loan forgiveness requirements of the PPP," Cornell researchers note.

What to watch: Reports of Americans facing layoffs and furloughs "were surprisingly higher for workers in states that have not been experiencing recent COVID-19 surges, relative to those in surging states," the survey found.

The big picture: Chris Jackson, senior vice president for Ipsos Public Affairs, says that the latest data from the Axios-Ipsos poll show...

  • "Only about half of the U.S. workforce is back to work under their normal circumstances."
  • "People working from home has come down only slightly from the peak, suggesting few white collar workers are going back to the workplace."
  • "While the number of people ‘let go’ have declined, the number of people ‘not working’ or out of the labor force has remained high suggesting this recession is shrinking the labor force."

U.S. surpasses 25 million COVID cases

The U.S has confirmed more than 25 million coronavirus cases, per Johns Hopkins data updated on Sunday.

The big picture: President Biden has said he expects the country's death toll to exceed 500,000 people by next month, as the rate of deaths due to the virus continues to escalate.

Keep reading... Show less

GOP party leaders face internal revolt for failing to stand up for Trump

The GOP is getting torn apartby a spreading revolt against party leaders for failing to stand up for former President Trump and punish his critics.

Why it matters: Republican leaders suffered a nightmarish two months in Washington. Outside the nation’s capital, it's even worse.

Keep reading... Show less

The limits of Biden's plan to cancel student debt

Data: New York Fed Consumer Credit Panel/Equifax; Chart: Axios Visuals

There’s a growing consensus among Americans who want President Biden to cancel student debt — but addressing the ballooning debt burden is much more complicated than it seems.

Why it matters: Student debt is stopping millions of Americans from buying homes, buying cars and starting families. And the crisis is rapidly getting worse.

Keep reading... Show less

Why made-for-TV moments like Amanda Gorman matter during the pandemic

In a world where most Americans are isolated and forced to laugh, cry and mourn without friends or family by their side, viral moments can offer critical opportunities to unite the country or divide it.

Driving the news: President Biden's inauguration was produced to create several made-for-social viral moments, a tactic similar to what the Democratic National Committee and the Biden campaign pulled off during the Democratic National Convention.

Keep reading... Show less

Russian police arrest over 3,000 protesters demanding Navalny's release

Russian police on Saturday arrested more than 3,300 people as protesters nationwide demanded that opposition leader Alexey Navalny be released from jail.

Details: Demonstrations that began in the eastern regions of Russia spread west to more than 60 cities. At least 3,324 of people were detained and tens of thousands of others protested into the night despite the presence of law enforcement and extremely low temperatures, per the OVD-Info group, which monitors political arrests.

Keep reading... Show less

Arizona Republicans censure Cindy McCain, Gov. Doug Ducey and Jeff Flake

Arizona Republican Party members voted on Saturday to censure prominent GOP figures Cindy McCain, Gov. Doug Ducey and former Sen. Jeff Flake (R-Ariz.), who've all faced clashes with former President Trump, per AZCentral.

Why it matters: Although the resolution is symbolic, this move plus the re-election of Trump loyalist Kelli Ward as state GOP chair shows the strong hold the former president has on the party in Arizona, despite President Biden winning the state in the 2020 election.

Keep reading... Show less

DOJ: Capitol rioter threatened to "assassinate" Alexandria Ocasio-Cortez

A Texas man who has be charged with storming the U.S. Capitol in the deadly Jan. 6 siege posted death threats against Rep. Alexandria Ocasio-Cortez (D-N.Y.), the Department of Justice said.

The big picture: Garret Miller faces five charges in connection to the riot by supporters of former President Trump, including violent entry and disorderly conduct on Capitol grounds and making threats. According to court documents, Miller posted violent threats online the day of the siege, including tweeting “Assassinate AOC.”

Keep reading... Show less

Schumer calls for IG probe into alleged plan by Trump, DOJ lawyer to oust acting AG

Senate Majority Leader Chuck Schumer (D-N.Y.) on Saturday called for the Justice Department inspector general to investigate an alleged plan by former President Trump and a DOJ lawyer to remove the acting attorney general and replace him with someone more willing to investigate unfounded claims of election fraud.

Driving the news: The New York Times first reported Friday that the lawyer, Jeffrey Clark, allegedly devised "ways to cast doubt on the election results and to bolster Mr. Trump’s continuing legal battles and the pressure on Georgia politicians. Because Mr. [Jeffrey] Rosen had refused the president’s entreaties to carry out those plans, Mr. Trump was about to decide whether to fire Mr. Rosen and replace him with Mr. Clark."

Keep reading... Show less

Insights

mail-copy

Get Goodhumans in your inbox

Most Read

More Stories