Friday marks day 16 of President Biden’s first 100 Day’s in office.
Day 16 is economic day in the White House.
On Friday morning the Bureau of Labor Statistics (BLS) released the Jobs Report for January 2021.
According to the report the unemployment rate “fell by 0.4 percentage point to 6.3 percent in January, while nonfarm payroll employment changed little (+49,000), the U.S. Bureau of Labor Statistics reported today. The labor
market continued to reflect the impact of the coronavirus (COVID-19) pandemic and efforts to contain it. In January, notable job gains in professional and business services and in both public and private education were offset by losses in leisure and hospitality, in retail trade, in health care, and in transportation and warehousing.”
Jared Bernstein a member of the White House Council of Economic Advisers, reportedly told CNBC this morning that today’s jobs report “underscores the urgent need for president’s rescue plan.”
Bernstein will be Press Secretary Jen Psaki’s guest in her afternoon daily presser @ 1:00 p.m. D.C., time.
Chief US Economist at Oxford Economics, Gregory Daco, wrote on Twitter that while the jobs report might “look good,” it isn’t.
In his next tweet he posts “some elements of positive news.”
Some elements of positive news in payrolls:— Gregory Daco (@GregDaco) February 5, 2021
👍State and local +67k:
> State +31k
> Education +36k
> Local +36K
> Education +49k
👎But these were distorted by seasonal factors
👍 Professional Biz +97k
👎 81k of those were temp jobs as businesses remain very cautious pic.twitter.com/5lvvITlPZ2
He goes right back to the negative news with his next tweet.
Many elements of negative news:— Gregory Daco (@GregDaco) February 5, 2021
1. Downward revisions to Nov/Dec: -159k
2. The 3-month averages are very soft:
3. Private payroll diffusion index at lowest since April pic.twitter.com/zzWV4FM8wx
For his next tweet he explains why the monthly job gains is disappointing.
Two key reasons why this small monthly job gains is disappointing:— Gregory Daco (@GregDaco) February 5, 2021
1. Came despite strong positive January seasonal factors (note SF weaker than in prior yrs)
2. The 🇺🇸economy is still short 9.9 million jobs relative to pre-#COVID19 pic.twitter.com/LA08SlefAB
In this tweet he says it is encouraging to see “some sectors doing better,” than before covid-19. He cautions adding a “but,” always with the buts… “these represent small share overall employment & the risk from lasting damage comes from many key sectors still facing employment shortfalls.”
Very encouraging to see some sectors doing better than pre-#Covid (grocery, online, couriers), but these represent small share of overall employment & the risk from lasting damage comes from many key sectors still facing employment shortfalls ~10% pic.twitter.com/FxF6JTvgG3— Gregory Daco (@GregDaco) February 5, 2021
He goes on to share his thoughts and charts on U-3 unemployment and U-6 under-employment rate.
This morning from the Oval Office, President Biden who is meeting with Democrats ahead of his economic speech and push to pass his American Rescue Plan, that he feels at this rate it would take “ten years before we get to full employment,” according to CNN’s Chief White House Correspondent Kaitlan Collins.
Early Friday morning the Senate passed the COVID-19 relief budget resolution, with Vice President Kamala Harris, casting her first, of probably many, tie-breaking votes, after the hours of “vote-a-rama”.
CNBC News explains that the “Approval of a resolution will allow Democrats to forge ahead with the budget reconciliation process, which enables the party to pass a rescue package with no Republican votes. While President Joe Biden has said he hopes to win Republican support for the aid plan, Democrats have started to set up the framework to pass the proposal as soon as possible without GOP support.”
The budget resolution directs committees to write legislation reflecting Biden’s Covid relief package, while staying under the $1.9 trillion target. Democrats aim to pass, among other provisions:CNBC News. 02/05/2021.
$1,400 direct payments
A $400 per week jobless benefit through September
$350 billion in state, local and tribal government relief
A $20 billion national Covid vaccination program
$50 billion for virus testing
$170 billion for K-12 schools and higher education institutions
A $30 billion rent and utility assistance fund
An important little note at the end of the CNBC News article; Democrats hope to pass a relief package before March 14, when a $300 per week unemployment supplement approved in December expires.
In a blog posted by the White House Jared Bernstein and fellow economic adviser Heather Boushey explained that “strong relief is urgently and quickly needed to control the virus, get the vaccine shots in arms, and finally launch a robust, equitable, and racially inclusive recovery.”
Those comments I’m sure well be drilled home during President Biden’s remarks, as well as again, during Friday’s daily presser.
Live Feeds for President Biden’s Economic remarks expected around 11:45 a.m. D.C., time.
The White House.
Daily presser @ 1:00 p.m. D.C., time. It’s possible the daily will start later than the scheduled time.
The White House.