As the pandemic reveals the vulnerabilities in the global economy, a new opportunity emerges for small-business owners in the United States who plan to grow their business across the Canadian and Mexican borders with the United States-Mexico-Canada Agreement, or USMCA, which went into effect on July 1, 2020. But, many small businesses in the United States are still unaware of … [More]
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1.4M Jobless Claims Last Week as States Ponder Reopening Measures
U.S. Department of Labor
In the week ending June 27, the advance figure for seasonally adjusted initial claims was 1,427,000, a decrease of 55,000 from the previous week's revised level. The previous week's level was revised up by 2,000 from 1,480,000 to 1,482,000. The 4-week moving average was 1,503,750, a decrease of 117,500 from the previous week's revised average. The previous week's average was … [More]
Employers Added 4.8 Million Jobs in June, Unemployment Rate at 11.1%
U.S. Department of Labor
Total nonfarm payroll employment rose by 4.8 million in June, and the unemployment rate declined to 11.1 percent, the U.S. Bureau of Labor Statistics reported today. These improvements in the labor market reflected the continued resumption of economic activity that had been curtailed in March and April due to the coronavirus (COVID-19) pandemic and efforts to contain it. In … [More]
How the DACA Program Impacts the U.S. Economy
by Edgar R. Olivo
On June 18, 2020, the United States Supreme Court upheld a decision to extend the DACA program through which hundreds of thousands of Dreamers across the United States can live and work without the fear of deportation. Since 2012, the Deferred Action for Childhood Arrivals (DACA) program has shielded many young undocumented immigrants from deportation. The Department of … [More]
Planning an Exit in Volatile Times
by Suzie Eyrich
Succession planning comes down to one question: “How do you want to exit?” The reality is all business owners will eventually exit their business. Whether they retire to the beach, sell their company and move on to another venture or for health reasons can no longer be a part of the day-to-day operations, they need a plan that financially prepares them for the next phase of … [More]
Fed Says Banks Will Remain Resilient Despite Scenarios of Deep Recession
Federal Reserve Board
The Federal Reserve Board on Thursday released the results of its stress tests for 2020 and additional sensitivity analyses that the Board conducted in light of the coronavirus event. "The banking system has been a source of strength during this crisis," Vice Chair Randal K. Quarles said, "and the results of our sensitivity analyses show that our banks can remain … [More]
New Weekly Jobless Claims Hit 1.5M, 14th Week New Claims Topped a Million
U.S. Department of Labor
In the week ending June 20, the advance figure for seasonally adjusted initial claims was 1,480,000, a decrease of 60,000 from the previous week's revised level. The previous week's level was revised up by 32,000 from 1,508,000 to 1,540,000. The 4-week moving average was 1,620,750, a decrease of 160,750 from the previous week's revised average. The previous week's average was … [More]
Unemployment Weekly Jobless Claims Show Another 1.5M
U.S. Department of Labor
In the week ending June 13, the advance figure for seasonally adjusted initial claims was 1,508,000, a decrease of 58,000 from the previous week's revised level. The previous week's level was revised up by 24,000 from 1,542,000 to 1,566,000. The 4-week moving average was 1,773,500, a decrease of 234,500 from the previous week's revised average. The previous week's average was … [More]
New Virtual Certificate Program Gives Owners and Workers Confidence in CDC Guidelines
by Edgar R. Olivo
As reopening across America is underway, many businesses are left wondering if they are doing enough to follow CDC guidelines to keep their workers and customers safe while making a profit. This is one of the many challenges small businesses will have to overcome soon to regain confidence in the marketplace, especially as we see spikes in COVID-19 cases and worries of a second … [More]
Core and Overall Consumer Price Index Both Fall 0.1 Percent in May
by Dean Baker
Both the core and overall Consumer Price Index (CPI) dropped 0.1 percent in May. It was the third consecutive month of decline for both indexes. The overall CPI has fallen 1.3 percent over the three months since the pandemic began to have a major economic impact, while the core index has dropped 0.6 percent. The pandemic has had sharply divergent impacts, as would be … [More]
Federal Budget Deficit Doubles from May of Last Year, Increase due to COVID-19
Congressional Budget Office
The federal budget deficit in May was $424 billion, about double the amount in the same month last year, CBO estimates. That increase stems from the economic disruption caused by the 2020 coronavirus pandemic and from the federal government’s response to it, including actions by the Administration and enactment of four pieces of legislation: the Coronavirus Preparedness and … [More]
Uncertainty Index Increases in May, Business Owners are Optimistic
NFIB
The Small Business Optimism Index increased 3.5 points in May to 94.4, a strong improvement from April’s 90.9 reading. Eight of the 10 Index components improved in May and two declined. The NFIB Uncertainty Index increased seven points to 82. Reports of expected business conditions in the next six months increased 5 points to a net 34%, following a 24-point increase in April. … [More]
73% of the Unemployed Report Being on Temporary Layoffs
The Center for Economic and Policy Research
The May jobs numbers were considerably better than most analysts had expected with the economy reportedly adding 2,509,000 jobs, while the unemployment rate fell by 1.4 percentage points to 13.3 percent. This improved labor market picture should not have been surprising since many businesses across the country had reopened by the survey week in mid-April. The high number of … [More]
Market Analysis from a Global Perspective as Gains Are Seen
By Joshua Mahony
The risk associated with the US jobs report is being cast aside as markets move higher once again. Travel stocks lead the way, while oil and gas stocks rise ahead of the OPEC+ meeting. Meanwhile, dollar weakness has helped drive GBPUSD higher despite Brexit fears. Another day of gains looks to be taking shape in Europe, with the value theme seen throughout the week … [More]
U.S. Unemployment Fell to 13.3% in May and the Economy Added 2.5M Jobs
Bureau of Labor Statistics
U.S. unemployment fell to 13.3% in May and the economy added 2.5 million jobs, a surprising upswing after pandemic-related declines. Total nonfarm payroll employment rose by 2.5 million in May, and the unemployment rate declined to 13.3 percent, the U.S. Bureau of Labor Statistics reported today. These improvements in the labor market reflected a limited resumption of … [More]
1.9M Jobless Claims Last Week As Economy Begins to Reopen
U.S. Department of Labor
In the week ending May 30, the advance figure for seasonally adjusted initial claims was 1,877,000, a decrease of 249,000 from the previous week's revised level. The previous week's level was revised up by 3,000 from 2,123,000 to 2,126,000. The 4-week moving average was 2,284,000, a decrease of 324,750 from the previous week's revised average. The previous week's average was … [More]
May Commercial Ch. 11s Increase 48 Percent over Last Year, Total Filings Down 42 Percent
American Bankruptcy Institute
Total commercial chapter 11 filings in May 2020 increased 48 percent from the previous year, according to data provided by Epiq Systems, Inc. Commercial chapter 11 filings totaled 722 in May 2020, elevated from the May 2019 total of 487. Conversely, total commercial filings decreased 28 percent in May 2020, as the 2,578 filings were down from the 3,558 commercial filings … [More]
Institute Research Shows Impact of COVID-19 on Local Commerce, Spending Declines
JPMorgan Chase Institute
The JPMorgan Chase Institute released new research that examines the COVID-19 pandemic’s localized impact through the lens of consumers and merchants across 16 U.S. cities: Phoenix, Atlanta, Chicago, Columbus, Dallas, Denver, Detroit, Houston, Los Angeles, Miami, New Orleans, New York, Portland, San Diego, San Francisco, and Seattle. This new research is the third in a series … [More]
