Job Recovery May Be Slowing As Coronavirus Cases Surge
Coronavirus cases have surged in several states such as Texas, California, and Arizona leading to a decrease in job recovery for hourly employees, according to CNBC.
Homebase is a data firm that works with small and medium-sized businesses in the service sector. Their reports show that employment may have declined last week with less employees working on June 24 than on June 15-19.
The Homebase report does not speak for the US economy as a whole but does contribute to the concern of slowing job recovery. Jobless claims are still at historically high levels, with 1.48 million new claims last week. “Albeit slow, the marginal improvement in the labor market is a positive sign we’re on the road to recovery, but the increasing claims states where virus cases are up proves there will be bumps along the way,” Charlie Ripley, senior investment strategist for Allianz Investment Management, said in a statement referring to the report.
Kronos, another data firm, has also seen a slowdown in jobs recovery. Recently, the pace of growth for hourly workers clocking has steadily decreased, according to Dave Gilbertson, vice president of strategy and operations for the company. “We did start to see a break point happen right after Memorial Day,” Gilbertson said.
Retail, hospitality, and healthcare are the three main industries that have seen employment levels start to wean off. “The thing we’re looking at here more closely this week and next week is trying to compare the states where there have been higher Covid spikes with where there are slowdowns, or even in some cases declines,” Gilbertson said.
The Labor Department’s monthly employment report is being released on Thursday and will confirm these speculations.