Hello everyone, and welcome to this episode of Ignition Time.
I hope everyone is having a wonderful day.
My name is Dr. Nitin Chhoda and I'll give you the latest
news pertaining to the country, the economy, as well as our money.
Job growth in the United States has
actually topped forecasts with the biggest gain in nearly a year.
This has led the stock market to all time highs.
And President Biden is wasting no time in taking credit for this.
Here's a headline of an article on your screen from Bloomberg.
US job growth tops forecast with biggest gain in nearly a year.
Payrolls actually rose 943,000 in July after the upwardly revised June gain.
The number of long term unemployed falls by the most on record.
Folks, this is good news.
This means that those who are long term unemployed have been out of a job for six
months or more are now starting to get back into the workforce.
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I'm going to connect the dots and help you understand what this means to you.
The US labor market charged ahead in the month of July and we had
the biggest increase in employment in nearly a year.
This means things are starting to get better.
Now, this is a big step towards the Federal Reserve's goal of
"substantial further progress in the job market."
And now I think interest rates will start to go back up, which means it could become
more expensive for you to pay your credit card bill because of interest.
It could be, it could cost more to get a car loan, to get a mortgage because
the economy is finally starting to get back on track.
Now, there is a flip side to this.
Payrolls remain 5.7 million short of pre pandemic levels.
And the Delta variant is indeed causing some concerns.
Here's a quote from Jeffrey Rosenberg, who is a senior portfolio manager.
at BlackRock. He said this, this is a very strong report across all metrics.
There's very little that you could point to here that's disappointing.
The problem here, folks,
is 5.7 million individuals have essentially either dropped out
of the workforce or have not gotten their jobs back.
So there are less people working today than there were prior to the pandemic.
Here's a quote from Wells Fargo economist Sarah House and Shannon Seery.
They said this, While there were some indications that labor constraints
continue to ease the rise in the delta, waiting clouds the outlook.
Fed officials will likely be pleased with July's progress
but we ultimately think that they will want to see further ground recovered.
Folks, a lot more needs to be done.
And folks, this is good news as far as
the Federal Reserve is concerned, but we still have a long, long way to go.
Now, let's take a look at the sector breakdown of US employment gains.
This is from the Bureau of Labor Statistics.
You can see that leisure and hospitality people started to get their jobs back.
Local government education, 220,000 jobs gained,
Professional and business services, jobs gain, transportation and warehousing,
health care and social assistance, manufacturing.
This is all good news across the board.
Those who are classified as long term
unemployed, in other words, those who have been unemployed for 27
weeks or more declined by five hundred and sixty thousand in July.
This is phenomenal.
More than half a million of our fellow
Americans who are long term unemployed are now back into the workforce.
Now, does this mean that President Biden's
efforts to approve two trillion dollars in pandemic relief through the American
rescue plan and widely distribute vaccines are working?
I would venture to say yes.
Now, here's the problem, though.
As the economy is recovering politically,
this will give a lot of ammunition to the Republicans
and to the conservatives to say, hey, we don't need to spend more money.
It's irresponsible to spend more money.
Why why are we spending more money
and pouring more fuel into an economy that's already running hot?
And folks, that is there is an argument to be made for that kind of reasoning.
Perhaps, perhaps we are finally getting back on track.
But folks, the biggest problem remains
and it will always, always be a perpetual problem.
How do we help those among us who need help the most?
And that is going to be the challenging issue.
In the meantime, Amazon and McDonald's,
some of the big employers have been increasing wages and offering sign
on bonuses to try and get workers to come back.
Average hourly earnings actually increased
by point four percent in July for the second month,
according to the recent report from the Bureau of Labor Statistics.
So what is the bottom line?
Employment population ratio jumped
to fifty eight point four percent in July from 58 percent more people are working.
The unemployment rate for white Americans fell to four point eight percent,
while the rates for black Americans dropped to eight point two percent.
In Hispanic Americans decline to six point six percent.
Average weekly hours held steady at thirty four point eight.
The participation rate for women age 25 to 50 for the group most likely
to have children rose to seventy five point five percent.
The rate among men in that group climbed to eighty eight point three percent.
This means that more individuals, both men and women.
Of childbearing age are now back
into the workforce, which, if you recall, has always been the biggest problem
in this pandemic, people having to stay home because of home schooling their kids,
because of childcare reasons, because of issues pertaining to remote
learning, because a lot of schools were not open in my own household.
My wife and I, we have a six year old son and a three year old daughter,
and we've been hesitant to send our kids back to daycare.
But now we're starting to feel more and more confident.
But you know what?
With the Delta waiting, we might just have them stay home with us.
This is the challenge for a lot of parents
when it comes to working, when it comes to trying to work from home.
Not all of us have the ability and the flexibility to be able to work from home.
In the meantime, President Biden said that the surge
in hiring shows that his economic plan is working.
Here's the headline of an article on your screen from Bloomberg.
The president spoke at the White House
after this promising jobs report and he said that his economic plan is working.
The president said this, I quote, The Biden plan is working.
The Biden plan is producing results.
And the Biden plan is moving the country
forward because the president, rightly so, is trying to take credit for a lot
of the progress that is taking place in the economy.
The president has argued that the economic success of his early months,
the American rescue plan, was facilitated by his administration's
vaccination effort and the American rescue plan.
He said the one point nine dollars billion American rescue plan and the president
said this We put in place the necessary tools early in my presidency to fight
the virus and fight the economic mess we inherited.
In fact, let's roll the tape and hear
from President Biden as as he celebrates his own economic success.
Let's watch. We learn that the economy created nine
hundred and forty three thousand new jobs in July.
Nine hundred and forty three thousand.
The unemployment rate fell by half a percent to five point four percent.
And while our economy is far
from complete, and while we doubtlessly will have ups
and downs along the way as we continue to battle the Delta surge of Koven.
What is indisputable now is this the Biden plan is working.
The Biden plan produces results in the Biden plan is moving the country forward.
We're now the first administration in history to add jobs every single month
on our first six months in office and the only one in history to add more
than four million jobs during the first six months.
Economic growth is the fastest in 40 years.
Now, on the other hand, there are Republican detractors.
They argue that the federal spending is driving up inflation and that trillions
more is unnecessary considering this economic growth that we are seeing.
Here's a quote
from Senator Marsha Blackburn, who's a Republican from Tennessee.
She tweeted this, Tennesseans are paying more to the gas pump and grocery store.
Meanwhile, Biden and the Democrats want
to pass a reckless multitrillion dollar tax and spending plan.
So you can see that the Republicans are
going to continue to hammer the Democrats finally.
House Speaker Pelosi said this in a recent
statement, We must sustain this growth and ensure
that all can share in its benefits by passing transformative infrastructure
and reconciliation bills that truly meet families needs at the same time.
Democrats will continue to fight
for families struggling as the Delta variant accelerates.
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I hope you learn something new from this video.
My name is Dr. Nadine Schroeder with Ignition Time.
Let me know what you think of the recent
jobs report and the president taking credit for this jobs report.
Let me know what you think in the comments section below.
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