“It’s a really unusual situation to have such a high vacancy-to-unemployed ratio,” Federal Reserve Chairman Jerome Powell told reporters last month.
Which give? The job market is really complicated, and it’s not always clear why companies and workers do what they do. But there is clearly a mismatch between the jobs available, the pay they offer and what workers are looking for.
If we look at the big picture, it may come as no surprise that the labor market is slow to recover. The pandemic has radically changed the way we live and the way companies do business. Some industries have benefited, others have been crushed.
To consider:
- Many workers have difficulty with school and childcare arrangements.
- Jobs in retail and hospitality carry a new level of health risk.
- Some workers have moved.
- Job seekers may not be willing to resume travel.
- Millions of people are afraid of being exposed to the coronavirus.
- Workers may not have the right skills for jobs in new growing industries.
- Unemployment benefits could allow some workers to wait longer for the right job.
These factors help explain why the unemployment rate is still 5.4%, up from 3.5% in February 2020 before the pandemic arrived. The so-called “real” unemployment rate, which includes people who want to work but are not actively looking, is closer to 10%.
Intervention needed: Policymakers will need to find ways to deal with the crisis if it continues. The Fed has no quick fix, and the central bank may need more help from Congress.
Powell said some people may be reluctant to work because they fear being exposed to the coronavirus or because they want to protect a vulnerable family member. Others, he said, may act as caregivers of children or elderly parents.
“All of these factors should go away,” he added. “I think the bottom line about it is that people want to work. If you look at where labor market participation can reach, people will go back to work unless they retire. Some people will retire. But, generally speaking, Americans want to work; and they will find their way to the jobs they want. This may take some time, however. “
The virus remains a problem for offices
The planned reopening of offices in the United States after the summer has been deflected by an increase in coronavirus infections linked to the Delta variant.
What it means: The delays will take a heavy toll on restaurants, bars, dry cleaners and thousands of other small businesses that depend on downtown foot traffic to survive. It will also increase the suffering of airlines, hotels and conference venues, already hit hard by the pandemic.
“There is no benefit to all of this,” Mark Zandi, chief economist at Moody’s Analytics, told my CNN Business colleague Matt Egan. “The question is how serious the economic downside is.”
Some good news: Despite corporate flip-flops, workers are still preparing to eventually return to the office. At the same time, university students are preparing for the start of the school year.
In London, rental values rose month-over-month in July for the first time since the start of the pandemic, according to Knight Frank. Activity is also resuming in the city’s business districts, with requests from agencies specializing in the relocation of companies and executives reaching their highest level last month since November 2019, the consulting firm said on Friday. in a report.
“The shift from high supply to low demand is shifting in the other direction,” commented Tom Bill, UK Residential Research Manager at Knight Frank. “Demand is coming from multiple sources and rental values are strengthening as a result. “
Virgin Galactic sells space travel for $ 450,000
Price to pay: A flight to space will cost you $ 450,000, more than double the price of tickets sold ten years ago, reports my CNN Business colleague, Jackie Wattles.
Buyer, beware: People who choose to fork out the cash for a seat may have to wait a while for their turn. More than 600 people who bought tickets between $ 200,000 and $ 250,000 when Virgin Galactic sold its first batch almost 10 years ago are already on the waiting list for a chance to take a trip to the far reaches. from space.
And about 1,000 more people deposited a deposit of $ 1,000 to secure early access to the last batch of tickets.
What to Expect: SpaceShipTwo will provide customers with a total one-hour experience, with views of Earth from a vantage point 80 kilometers above the planet’s surface.
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Also today :
- US Employment Report for July.
- Bukalapak e-commerce company achieves largest IPO in Indonesia.
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