WASHINGTON — The job market took a big step toward healing in May, though plenty of damage remains, as a record level of hiring followed record layoffs in March and April.
The Labor Department reported Tuesday that the number of available jobs rose sharply, as well, but remained far below pre-pandemic levels.
The figures, from the government’s Job Openings and Labor Turnover survey, or JOLTS, illustrate the whiplash the economy has experienced since the pandemic intensified in mid-March.
Layoffs soared in March to a stunning 11.5 million, roughly four times the peak during the 2008-2009 recession. They remained extraordinarily high in April, at 7.7 million, but in May they fell back to pre-pandemic levels of 1.8 million.
It's a Titanic iceberg syndrome type of thing. Less water coming into the boat but still $inking.
Hiring, meanwhile, plunged in April to 4 million, the lowest level since 2011, but jumped to 6.5 million in May. While that is the most hires in records dating back to 2000, it wasn’t nearly enough to offset the roughly 19 million layoffs in March and April, and whatever ground has been recaptured to this point is now being imperiled by a resurgence of COVID-19 cases throughout the South and West.
They weren't new hires, they were people being brought back so the terminology is deceptive.
Despite a solid rebound in employment, the job market remains badly damaged, both by mandatory lockdowns and the reluctance of people to again visit restaurants and theaters or to travel freely, at least until a vaccine or an effective treatment for the virus is available.
It's the same old broken record from these mon$ters of the media, and at least the $tock market is doing great!
The JOLTS report provides gross totals of hiring and layoffs, while the monthly jobs report, which also includes the unemployment rate, is a net figure of total jobs gained or lost.
On Thursday, the jobs report showed that employers added a net total of 4.8 million jobs in June, after a gain of 2.7 million in May. Even those huge net gains recaptured only one-third of jobs lost in March and April and the unemployment rate is 11.1 percent, down from its April and May levels but otherwise higher than at any time since the Depression.
Employers advertised 5.4 million jobs in May, about 10 percent higher than in April, but still below pre-pandemic levels of about 7 million.
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Related:
"Wall Street’s recent string of big gains came to an abrupt stop Tuesday as stocks closed broadly lower following a pullback in markets overseas. Technology stocks, banks and companies that rely on consumer spending accounted for a big slice of the slide, which accelerated toward the end of the day, another sign of caution in the market. Optimism that the economy is on the mend as businesses reopen has helped drive stocks higher, but the recent surge in confirmed new coronavirus cases has clouded hopes for a relatively quick economic turnaround. Investors are also girding for what the next few weeks will reveal about the health of corporate America as companies begin reporting their second-quarter results. “It’s not unusual for these five-day runs to be met with a bout of profit-taking, especially given the headlines on the virus,” said Quincy Krosby, chief market strategist at Prudential Financial. “When you move toward overbought conditions it doesn’t take much for the market to burn off some of the froth.” The selling followed a deeper pullback in France, Germany and elsewhere after the European Union’s executive arm said this year’s recession caused by the coronavirus pandemic will be deeper than forecast. It also said next year’s expected rebound could be weaker than expected. Lifting markets higher on one end are reports showing budding improvements in the economy. The job market, retail sales and other economic indicators are all still well below where they were before the pandemic struck, but they’ve stopped plummeting and have begun to grow again as governments relax restrictions meant to slow the spread of the coronavirus. That’s combined with unprecedented amounts of aid from central banks and governments around the world to prop up markets. “The economic data that has come out over the past couple of months has actually beaten even the most optimistic economists, so in that scenario it’s not surprising to see a euphoria-driven rally in the market,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors, but pulling markets lower on the other end are worries that the optimism is overdone. The pandemic isn’t going away, with infection levels worsening across wide swaths of the US South and West, among other global hotspots. The concern is that spreading infections could keep households and businesses nervous and scare them away from spending. In the worst-case scenario, it could force governments to bring back some of the restrictions that sent the economy into its sudden recession....."
I would put stock in it. Will be in lockdown for an entire year next time.
Good luck collecting:
Mass. finds more than 58,000 bogus unemployment claims, recovers $158 million
So who didn't get their $$$, and isn't blaming Nigerians racist?!
"Wall Street’s rally got back on track Wednesday after more gains for big technology stocks helped pull the S&P 500 to its sixth gain in seven days. The Nasdaq Composite set another record. Optimism is rising about a reopening economy, but worsening coronavirus infection levels across much of the South and West threaten to derail the budding economic improvements, but tech-oriented stocks have continued to climb as investors bet they’ll be able to grow almost regardless of what the economy is doing. Amazon added 2.7 percent, Apple rose 2.3 percent and Microsoft gained 2.2 percent. Those three stocks alone were responsible for more than half the S&P 500’s gain for the day. Such indomitable strength for technology stocks is raising some concerns, though. ‘‘The Nasdaq is screaming warning signs that there’s rampant speculation,” said Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management, after expectations have built so high. “I would be very cautious on some of these companies,’’ he said. ‘‘The worst thing in the world is to own companies that have just gone hyperbolic.”
Oh, look who is benefiting from the illu$ionary $tock market as signs of euphoria among the nation’s investing masses are popping up everywhere (it's still a gamble).
It's almost as if it is a fanta$y:
"The augmented reality startup Magic Leap Inc. has hired Peggy Johnson, a Microsoft Corp. executive, to take over as chief executive starting next month, as the company continues to reshape itself as a provider of business services. Magic Leap had been one of the buzziest startups, raising more than $2 billion, largely on the promise that it would turn augmented reality into a viable consumer technology, but the Florida company struggled to execute, and sales of its flagship product, the Magic Leap One headset, never took off. The company said late last year that it would focus more on business applications and cut more than half of its workforce in April. Johnson, who spent more than two decades at Qualcomm Inc., brings extensive experience negotiating partnerships with large businesses. She joined Microsoft in 2014 as one of chief executive Satya Nadella’s first major hires, and worked to repair Microsoft’s relationships with big business. In 2016 she started Microsoft’s venture capital arm, M12. Microsoft also makes one of the main rivals to Magic Leap, the Hololens, which it has always positioned primarily as a business tool."
Better look before you leap, even if it's virtual.
{@@##$$%%^^&&}
"What we know (and want to know) about Dunkin’ closing 450 stores" by Brittany Bowker Globe Staff, July 8, 2020
We know America (and Massachusetts specifically) runs on Dunkin’, so when the Canton-based coffee and doughnut chain announced it will permanently close hundreds of stores across the country, some may have been left wondering what that means.
America will grind to a halt!
Dunkin’ announced plans to close 450 store locations by the end of this year after reaching an agreement with the gas station chain Speedway, according to its fourth quarter and 2019 fiscal year earnings report, which was released in February and gained traction this week.
If you’re worried about the fate of your corner Dunkin’, don’t. All stores that are closing are located inside Speedway convenience stores with limited menus, according to chief financial officer Kate Jaspon.
“These limited-menu locations are lower volume units, in total representing less than 0.5 percent of Dunkin’ US annual systemwide sales,” Jaspon said in a Feb. 6 press release. “By exiting these sites, with minimal financial impact, we’re confident we’ll be better positioned to serve many of these trade areas in the coming years with new Dunkin’ NextGen restaurants that offer a broader menu.”
So what are NextGen restaurants? And just how many Speedway gas stations are there in Massachusetts? Here’s what we know so far.
Dunkin’ launched its Next Generation concept stores in 2018, which feature “modern design” and “innovative technologies” such as a drive-thru for mobile ordering, new espresso machines, digital kiosks, a tap system serving cold beverages, and ecofriendly cups. It also added plant-based proteins to its breakfast sandwiches. Think — posh Dunks.
In place of meat?
There are at least 100 Speedways in Massachusetts, according to that company’s website, although it’s unclear how many locations host the Dunkin’ chain.
Dunkin’ expects to open between 200 and 250 new outposts in fiscal year 2020, according to its earnings report. “By exiting these sites, we are confident we will be better positioned to serve these trade areas with Dunkin’s newest Next Generation restaurant design that offers a broader menu and modern experience,” Jaspon said. “We also remain committed to growing our presence in gas and convenience locations, as well as other non-traditional locations, including airports, universities, travel plazas and military installations.”
They say that as they are contracting and the economy is collapsing.
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You will just have to drink tea on the flight:
"United says it may furlough as many as 36,000 workers because of pandemic losses" by Lori Aratani Washington Post, July 8, 2020
United Airlines announced Wednesday that despite receiving billions in federal aid, it may furlough nearly 36,000 employees Oct. 1.
The number represents more than one-third of the Chicago-based airline’s workforce.
Government grants received through the $2 trillion coronavirus relief package known as the Cares Act require airlines to keep front-line workers on the job through Sept. 30. United signed a letter of intent this week to accept roughly $4.5 billion in loans through the program, but company executives said with demand for air travel unlikely to return in 2020, they have no choice but to warn employees that they may be let go.
‘‘The reality is that United simply cannot continue at our current payroll level past October 1 in an environment where travel demand is so depressed,’’ the airline said in a memo sent to employees, ‘‘and involuntary furloughs come as a last resort, after months of company-wide cost-cutting and capital-raising.’’
Under federal law, most companies with 100 or more employees must give workers 60 days notice of mass layoffs or plant closings.
The number of furloughs could be less depending on how many employees take advantage of early retirement, voluntary separation, or other programs, executives said. They said employees also could be recalled as demand for travel rebounds.
What is happening at United may likely be repeated across the industry as carriers struggle to survive during the worst crisis in the history of the industry. Despite cutbacks, United officials said the airline is still burning through $40 million a day.
‘‘The United Airlines projected furlough numbers are a gut punch, but they are also the most honest assessment we’ve seen on the state of the industry,’’ said Sara Nelson, president of the Association of Flight Attendants-CWA, which represents nearly 50,000 flight attendants at 19 airlines, including United.
AFA and other unions have called on Congress to extend payroll support offered through the Cares Act, but United executives said they aren’t counting on such an extension.
‘‘Failing to maintain this successful jobs program will have a ripple effect across the economy,” Nelson said. “Conversely, a clean extension of the program helps prime us for economic recovery.’’
Not a jobs program, it's government welfare or more accurately, a SOVIET-STYLE PAYMENT $Y$TEM, and for how long can they print money until it becomes worthless?
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Related:
"Boeing Co. said it has settled 90 percent of wrongful-death claims filed in a US court over the 2018 crash of a 737 Max jet operated by Lion Air. Claims relating to 171 of the 189 people on board Lion Air Flight JT 610 have been settled, Boeing said Tuesday in a Chicago federal court filing. The company didn’t say how much it had paid the families or estates of the passengers and crew members killed in the crash. The company said it is optimistic that the remaining cases will be resolved. The crash occurred over the Java Sea in October 2018, followed five month later by another 737 Max crash in Ethiopia that killed 157. The crashes led to lawsuits alleging the jets were unsafe and had a faulty software system. The 737 fleet has been grounded, Boeing sales have plunged, and the US government is investigating the aircraft’s flight-control system."
It is so gratifying to see that human life has a price.
Also see:
Boeing Forgoes Bailout
They were in retreat, but ended up taking the money anyway.
It's was then that a ray of light $hone through the clouds:
"Sunrun, the nation’s largest residential solar company, is acquiring a leading competitor, Vivint Solar, to form one of the world’s largest providers of solar equipment. The all-stock deal would create a company with about 500,000 customers. Sunrun, based in San Francisco, and Vivint, based in Utah, have held two of the top three positions in the residential solar market along with Tesla. In addition to panels, Sunrun and Vivint sell residential battery systems. Sunrun has focused on financing and installing solar panels and batteries rather than on producing them. About 3 percent of US homes have solar, and residential installations during the coronavirus pandemic have dropped as many homeowners have cut spending and reduced interactions with other people. Vikram Aggarwal, chief executive of EnergySage, a solar comparison-shopping market, questioned some of the benefits of the acquisition for consumers, given that both companies have relied on direct contact with people for sales and service more than some other companies like Tesla."
Nothing like Bathing in it:
Shipbuilders demonstrated outside an entrance to Bath Iron Works last month (Robert F. Bukaty/Associated Press/Associated Press)
Look who is in the front of the line.
Better hop on your bike:
Peloton Interactive is facing a new threat from a competitor
This time it is the US Patent and Trademark Office.
T-Mobile rolling out high-speed service in rural areas
Following a merger, three western Michigan counties can sign up offer in Michigan consists of a 4G wireless signal beamed into a home, where a receiver creates an indoor Wi-Fi hot spot. The company says speedier 5G service will follow, and it will be the death knell for us all.
Pipeline operator not yet complying with judge’s shutdown order
Energy Transfer spokeswoman Vicki Granado said, “We are not shutting in the line,” noting that the company believes Judge James E. Boasberg “exceeded his authority and does not have the jurisdiction to shut down the pipeline or stop the flow of crude oil,” even though an outright violation of a court order could result in fines or jail time.
Time to $uit up:
"Nearly 400 workers at the Brooks Brothers factory in Haverhill will not receive severance pay when the facility closes next month, their union said, including employees who agreed to work during the coronavirus pandemic to manufacture masks for front-line workers....."
They should have hired a better lobbyist.
At least Congre$$ is coming to the re$cue:
"Congress set aside $659 billion to throw a lifeline to small businesses and organizations side-swiped by the coronavirus pandemic and to keep paychecks flowing to workers who might otherwise head to the unemployment line, yet that’s not exactly how it worked out. While many companies have been hurt by shutdown orders, some also have deep pockets or the backing of private equity firms. Loans also went to private equity firms, venture capital firms, law firms, and other companies that seem in better position to weather the storm than smaller businesses, including some that didn’t get loans due to issues with the program’s design. The government didn’t release exact loan amounts, but rather ranges....."
P.F. Chang’s got some, and the fund still has $130 billion left over as the gaming industry blinks back to life.
"Despite the stumbles, Paycheck Protection Program has done its job" by Larry Edelman Globe Staff, July 8, 2020
Ever since the federal government began lending billions of dollars to small businesses pounded by the coronavirus pandemic, attention has focused on the program’s flaws: loose restrictions, technical glitches, and abuse by bigger companies and wealthy people who shamelessly exploited loopholes to qualify, but all the legitimate criticism — and shaming of dubious recipients such as Tom Brady and the Church of Scientology — shouldn’t obscure the fact that the Paycheck Protection Program has successfully helped millions of US employers with up to 500 workers survive the shutdown of a big chunk of the economy.
Like Circle, a digital currency startup.
The companies that took PPP loans come from nearly every corner of the state’s economy. Of course there are the hardest hit: restaurants and bars, hotels, small retailers, but there are also law firms and private schools, health care providers and construction companies, ballets and bus companies, social service nonprofits and high-tech startups.
With money left over, too!
Btw, if what he is saying is true, why is more aid needed?
The SBA’s rollout didn’t go smoothly. Websites set up by lenders were swamped. When the money ran out in just two weeks, many applicants didn’t know whether they had been approved. Congress scrambled to replenish the funding, and some restaurants, bars, and other consumer-facing businesses were initially reluctant to spend the money to retain or bring back workers because they weren’t sure when they’d be able to reopen. The rules were changed to give borrowers six months, instead of the original two, to use the cash.
More bad publicity accompanied reports of publicly traded companies and businesses owned by billionaires getting PPP dollars. It was unseemly, though technically not against the rules, since the program was designed to help companies with nowhere else to turn.
The Treasury eventually clarified that the program was not intended for “a public company with substantial market value and access to capital markets,” and borrowers including AutoNation, Shake Shack, and the Los Angeles Lakers returned the money. Many more did not, including Kanye West’s Yeezy brand and well-heeled relatives of presidential son-in-law Jared Kushner.
The Lakers were whistled for a foul while West and Kushner walked away with the loot!
Why isn't the pre$$ focused on Kushner?
Some academics have argued that PPP is an ineffective way to protect jobs. A working paper by researchers at the University of Chicago Booth School of Business and MIT’s Sloan School of Management found that the loans initially did not have a substantial effect on important measures of economic activity, such as business closings, hours worked, and unemployment claims.
That's not what the stewardess at United said.
“Firms appear to use first round funds to build up savings and meet loan and other commitments,” the researchers wrote. They expect to follow up and study how the all the money was eventually used.
That may be the view from 30,000 feet, but down on the ground PPP has had an immediate and beneficial impact.
Here is another view from 30,000 feet.
At the Boys & Girls Clubs of Boston, many of the organization’s nearly 300 jobs were threatened when its 11 clubs were forced to close and switch to online programming. A $2.1 million PPP loan allowed the nonprofit to continue salaries and benefits — though 34 people were furloughed and 13 were laid off — and pay rent and utilities, according to executive vice president Dave Libby.
Donations, a major source of revenue, took a hit when the economy collapsed, Libby said. Without the government money, “there would have been significantly more layoffs, and we would have lost connection to our members and their families.”
Nearly $1.5 million in PPP money made it possible for the Conservation Law Foundation to not only protect jobs, but to increase its staff by four to 85 and go forward with paid internships for 13 students, according to Jake O’Neill, a spokesman for the Boston environmental advocacy nonprofit.
Like all restaurants, Legal Sea Foods was crushed by the coronavirus crisis, furloughing 2,500 workers when it closed all 32 restaurants. CEO Roger Berkowitz took a $10 million PPP loan, which he is using to cover benefits and vacation pay for his idled workers through August.
“We needed the PPP. It’s essential for our business and for taking care of our employees,” said Berkowitz, who has 200 workers on the job and is bringing back another 200 soon to open three more restaurants. “The economy would be in more turmoil if it didn’t exist,” and that sums up PPP.
He is another high flyer.
The program is far from perfect and it can’t solve all the economy’s ills, but a lot more businesses would be closed, and a lot more people out of work, if it didn’t exist.....
And they will be after it no longer does.
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Also see: Almost 50 Million Americans Have Now Filed For First-Time Jobless Benefits Since Lockdowns Began
It would have been worse without the PPP.
