US economy adds 661,000 jobs in September as recovery slows - Al Jazeera English | Canada News Media
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US economy adds 661,000 jobs in September as recovery slows – Al Jazeera English

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The United States economy added 661,000 jobs in September – fewer than many economists were expecting – while the unemployment rate fell to 7.9 percent, the US Department of Labor reported on Friday.

This is the final monthly snapshot of the US labour market American voters will see before the November 3 presidential election, and the unemployment rate falls at a time of rising uncertainty around the pace of the economic recovery and President Donald Trump’s re-election bid after he and First Lady Melania Trump tested positive for COVID-19.

September marks the fifth straight month of job gains since the economy haemorrhaged more than 22 million of them in March and April as coronavirus lockdowns swept the nation. More than 11.4 million of those positions have been clawed back. But the labour market is still well shy of its pre-pandemic strength.

Back in February, the unemployment rate was hovering near a half-century low at 3.5 percent.

Though job creation is moving in the right direction, it is not moving fast enough for millions of laid-off Americans, many of whom have already faced or are facing permanent job losses.

Tuesday’s debate between US President Donald Trump and Democratic presidential nominee Joe Biden offered nothing in the way of thoughtful discourse on how to get unemployed Americans back to work.

Trump is advocating the same policy mix he used prior to the pandemic to nurse the economy back to health: tax cuts, regulatory rollbacks and a continuation of his administration’s “America First” crackdown on trade deals and trading partners Washington regards as unfair.

Biden’s “Build Back Better” blueprint aims to revive the US economy from the ravages of COVID-19 while redressing long-festering inequalities and the climate crisis. His policy mix includes increasing corporate taxes to fund innovation and buy American products to expand jobs; tax incentives and penalties to encourage US firms to keep and create jobs in the US; a massive $2 trillion investment in clean energy and a federal boost for caregiving.

Multiple gauges of economic activity released this week signal that the recovery is starting to plateau. Layoffs remain widespread, activity at the nation’s factory is downshifting, household incomes fell more than expected in August and consumer spending – the engine of the US economy accounting for some two-thirds of growth – has also slowed sharply.

The entire fall in household incomes is due to the expiration of the federal $600 weekly top to state unemployment benefits at the end of July.

The White House and Congress remain at loggerheads over a new round of virus relief aid and many economists, including US Federal Reserve officials, have warned the economic recovery is at risk of stalling or even derailing without more federal fiscal support from Washington.

Deeper dive into September numbers

A deeper dive into the jobs report shows that the number of unemployed workers stood at 12.6 million in September, one million fewer than the previous month, but almost twice as high as February when 6.8 million Americas were unemployed.

The number of people on temporary layoff fell by 1.5 million last month to 4.6 million – dramatically lower than 18.1 million recorded in April when tens of millions of Americans were thrown out of work during lockdowns.

But the number of permanent job losses rose by 345,000 in September to 3.8 million.

While the nation’s unemployment rate fell to 7.9 percent last month, not all of that recovery was due to positive reasons.

To be counted as “unemployed”, a person needs to be actively looking for work. But in September, about 4.5 million Americans said they were prevented from looking for work because of the pandemic.

Of the 19.4 million Americans who reported that they were unable to work last months because of a pandemic-related closure or lost business, only about 10.3 percent received at least some pay from their employer.

Recovery and inequalities

Prior to the pandemic, the nation’s jobs market was on fire and the racial unemployment gap had narrowed to its lowest on record.

But the ravages of COVID-19 are now exacerbating pre-existing inequalities.

Though September marked the first time in five months that the racial employment gap narrowed, there is a still a considerable gap.

The unemployment rate for whites last month was 7 percent, compared with 12.1 percent for African Americans and 10.3 percent for Latinos.

The jobless rate for men above 20 years stood at 6.5 percent in September compared with 6.9 percent for women.

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Carry On Canadian Business. Carry On!

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Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

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Imperial to cut prices in NWT community after low river prevented resupply by barges

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NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

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U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

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TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

The Canadian Press. All rights reserved.

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