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Getting women back to work is crucial to boosting economy, White House says – CNBC

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Kellie Bhattacharya oversees Eli’s schoolwork at their California home.
Source: CNBC

Kellie Bhattacharya thought she would be back in the job market by now, but the coronavirus pandemic upended those plans.

The California mother of two decided to leave her job after her second child was born.  

“The cost of child care was going to eat most of my paycheck,” Bhattacharya said. “It didn’t really make sense for me to go and only bring home a small salary.”

She planned to resume her career in public relations this fall, as her daughter, Ava, reached preschool age. Instead, she’s found herself home-schooling both her three-year-old daughter and her six-year-old son, Eli. 

“I never thought we would be where we are right now,” said Bhattacharya, who wants to get her kids vaccinated and to find quality, affordable child care before she goes back into the workforce. 

Experts predicted women would return to the labor force once schools reopened in the fall, but instead, the problem got worse.

In September, some 300,000 women left the workforce altogether, according to the Bureau of Labor Statistics’ September jobs report. Since the start of the pandemic in 2020, 3 million women have exited the job market. Getting those women back into the mix is crucial to keeping the U.S. economic engine humming.

“If we were to increase our labor force attachment, especially of women and caregivers, this would have a significant effect on U.S. economic growth,” said Heather Boushey, a member of the White House Council of Economic Advisers.

But it’s not just child care that’s keeping women on the sidelines. The sectors of the economy that have seen the greatest job losses are those that employ large numbers of women. Employment in state and local government and private education are down a combined 676,000 jobs since before the pandemic, according to BLS data.

In fact, men gained 220,000 jobs in September, while women lost 26,000 jobs, according to an analysis of BLS data from the National Women’s Law Center.

The Biden administration has proposed sweeping changes to shore up what Democrats call the “care economy,” including universal pre-K, paid family leave, a cap on child care costs to a percentage of household income, and expansion of the child tax credit.

Vice President Kamala Harris is holding events emphasizing the need to address these issues and focusing on accomplishing the administration’s goals.

“For far too long, investments in care have dropped to the bottom of the priority list,” Harris said at a virtual town hall Thursday morning. 

Conservatives say the Biden proposals are an overcorrection to what is happening now. Instead, they support a more targeted approach. 

“They are proposing to create what really is a childcare entitlement, where all families, regardless of income will receive a subsidy from the government,” said Angela Rachidi, a senior fellow at the American Enterprise Institute. She said those subsidies would come with new requirements on child care providers that could make the problem worse for the people who need help the most.

“In-home providers, for example, or small child care providers, will not be well equipped to handle new government regulations and they will actually get out of the child care business entirely,” Rachidi predicted.

Rachidi said getting the pandemic under control and a free-market approach such as employers giving workers flexibility will go a long way to getting women back into the workforce.

Bhattacharya said she is hopeful she’ll be able to resume her career and a flexible employer is one key to her return.

“Now being a mom, I need additional flexibility that you don’t have as a single person,” she said.

But with the pandemic continuing to create uncertainty, she added, “I think it takes a lot of patience. You have to be forgiving of yourself as well.”

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S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

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TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

Statistics Canada reports wholesale sales higher in July

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OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 150 points, U.S. stock markets mixed

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TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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