Leisure And Hospitality Hiring Plummets. Or, Wait — ‘Softens’

Leisure And Hospitality Hiring Plummets. Or, Wait — ‘Softens’

US private sector employers added far fewer jobs than expected in July. Private sector employment rose 330,000 last month, ADP said Wednesday. It was a remarkable downside miss. Economists expected 690,000 (figure below). The lowest estimate from nearly three-dozen forecasters was half a million. June's headline was revised lower by 12,000. Although ADP hasn't been a good predictor of the government report in the pandemic era, Wednesday's numbers were incremental evidence that the US labor
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7 thoughts on “Leisure And Hospitality Hiring Plummets. Or, Wait — ‘Softens’

  1. “The paradox is that “normal” might not necessarily be a good thing to the extent the pandemic exposed the harsh reality of American-style, “vibrant” capitalism: It relegates a huge portion of society to the edge of poverty.”
    How is this any different than the British-style capitalism of the 19th century, which also relegated a huge portion of society to the edge of poverty? What about India-style capitalism or China-style capitalism today? Maybe we need a bit of present day “German-style” socialist-capitalism? Can Biden accomplish this? The wealth tax makes more and more sense (even if the government doesn’t actually need the money). Large concentrations of wealth lead to substantial political power and greater inequality.

      1. I would argue that many of the past engineers (public servants??) would argue that it it IS working. Rich people get richer and the former and current legislators get kickbacks and “public speaking” gigs to reward themselves for their efforts.

  2. Great summary and analysis as usual H! I still view news, other than Fed announcements, as completely unimpactful to the markets. Employment goes up and down, earnings go up and down, purchasing goes up and down, prices go up and up, and the markets continue to just basically go up. The only thing that’s stopping this rally is a threatening Fed announcement.

  3. The USA risks disenfranchisement of an undesirable nature caused by favoring the wealthy over the average citizen.. the root cause of this is simple greed. We all should know that this will not end good if we don’t end it by force before.

  4. One might look at the service sector employment miss as a strike by unaffiliated workers. The upper class has feasted on low cost service wages for decades. They panicked when they thought they might have to pay more for yard work, nannies, and house cleaning.

    If, in 1861, they thought the same way as we do today, the South would have threatened the average Northerner with tripling the cost of everything made of cotton should slavery end. (My memory fails me, but I believe they tried something like this with the Brits to get their backing) When one gets hooked on goods produced by slave labor (China) how many are willing to pay more for product produced with labor receiving a living wage? The answer is very few in this country. What price freedom? Apparently $15/hr with benefits is too much in this country.

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