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A surprisingly disappointing jobs report could hold a silver lining for housing markets, giving the Federal Reserve justification to continue policies that keep a tight lid on interest rates.
But that silver lining could evaporate if employers are forced to raise wages too quickly to fill openings, sparking inflationary pressures that spook bond investors and forcing the Fed to give interest rates more room to run. In addition, housing industry leaders are anxious to see more people working in construction, as builders struggle to keep up with demand for new homes.
U.S. companies added 266,000 workers to their payrolls in April, when economists polled by Reuters had expected payrolls to grow by closer to 1 million jobs. And it turns out that only 770,000 jobs were added in March, not the 916,000 originally reported, according to the Department of Labor.
Survey shows Lehigh Valley businesses are recovering from COVID-19 pandemic, but finding workers remains a challenge mcall.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from mcall.com Daily Mail and Mail on Sunday newspapers.
by Christen Smith, The Center Square | May 07, 2021 05:00 PM Print this article
Pennsylvania House lawmakers support reinstating work search requirements for unemployment claimants and said loosened regulations will bolster the state’s economic recovery.
The Department of Labor & Industry said, however, that the manpower shortage businesses face is not a result of suspended work search requirements or the $300 weekly jobless benefit enhancement approved by Congress in March.
“Work search has never been suspended before, so there’s no precedent for reinstating it,” said Sarah DeSantis, a department spokesperson. “We are working with our partners and stakeholders to determine a best date to restart.”
The reasons vary: Potential workers may be unvaccinated and some working parents continue to face a lack of child care or in-person schooling for their children. Restaurant workers may be hesitant to return to the front line and risk getting Covid-19.
Others may have moved out of the area or found a new way to make money. Then there is the extra $300 weekly unemployment insurance, which may also hold people back from taking a job, owners have said.
Those explanations are among the ones Matt Glassman, co-owner of The Greyhound Bar & Grill in Los Angeles, heard from former employees who decided not to return when he reopened this week. His two locations have been closed since last June, after Glassman and co-owner Steven Williams contracted Covid and decided it wasn t worth the risk to reopen until vaccines were readily available.