With a record 8.1 million job openings, it’s clear that businesses need labor. But right now, labor has a system to game. We’ve already seen that an extra $300 per week of federal unemployment on top of state unemployment can make for $600 or more per week. Over a 40 hour workweek, the math says that’s $15 per hour. With most minimum wages below that nationally, it’s clear to see that not working is what pays best right now for many low-skilled workers.
President Biden has weighed in on the matter, downplaying the effect the extra unemployment benefits are causing. He’s also stated that anyone who has a suitable job offer needs to get back to work. Without defining the word “suitable,” however, it’s clear that the system can still be gamed. Expect the labor market to remain out of whack as long as extended benefits remain available.
Now here’s the rest of the news:
The Jobs Picture Is More Complex Than It Seems –Bruce Yandle,Reason
Expectations for April: 1 million new jobs. Those hopes were crushed when the BLS reported just 266,000 jobs created. Here’s why that’s not quite as bad as it looks… [Read Here]
May 12, 2020
It certainly appears that the market is looking to find new leadership but is failing to do so. How much can tech and healthcare drag the market higher w/o greater participation?
Not that the internals were terrible today, but the Nasdaq 100 that closed nearly 1% higher had more declining stocks than advancing stocks and more declining volume.