US financial news summary | 4 September 2023
US Financial News
Headlines: Monday 4 September 2023
- Employment report: 736,000 people enter job market, unemployment at 3.8%
- Job openings fell in July to a more than 2-year low, pointing to slowdown
- US quarterly growth slower than expected in Q2
- Minimum wage in Florida set to increase in September
- Minimum wage in California to go up in 2024
- New requirements to receive SNAP benefits in 2024 to take effect soon
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The United States Department of Labor’s unemployment insurance programs provide benefits to workers who have lost their jobs provided they meet certain eligibility requirements.
Unemployment Insurance is a joint state and federal program that provides cash benefits to qualified workers. Each state administers its own separate program. However, they all follow certain guidelines established by federal law.
Finding affordable housing in the United States has been getting harder with a tight housing market pushing up prices across the country. Those who are renting are feeling the pinch too.
There is assistance available for very low-income families, the elderly, and the disabled through the Section 8 Housing Choice Voucher program to afford decent, safe, and sanitary housing.
The US monthly jobs report is produced by the Bureau of Labor Statistics (BLS). This data reveals the data behind the US economy, providing institutions the information necessary to carry out business, such as the Federal Reserve setting interest rates. Unemployment data is crucial for advising the Fed how high to set rates; high unemployment usually means lower rates to stimulate spending.
The latest data showed an increase in unemployment to 3.8 percent, the highest since February 2022 and nonfarm payrolls increased by 187,000.
However, farm payrolls are not part of the report. Here's why...
Illinois workers who earn the minimum wage will see larger paychecks in 2024.
Here’s how much the increase will be and when the new pay floor takes effect.
Americans rejoining US labor force
Participation in the US labor plunged during the covid-19 pandemic as many workers left the workforce or sat on the sidelines due to health concerns or complications imposed by the disruptions. Over three years since the public health emergency was declared the percentage of Americans in the labor force has nearly returned to pre-pandemic levels.
At 62.8%, it is just half a percent from where it was in February 2020. Between July and August 2023, 763,000 people joined the civilian labor force according to recent Department of Labor data.
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The COLA represents an increase in Social Security payments. Each month, the Social Security Administration sends different checks, including those for retired workers and survivors (children, spouses, widows, widowers or parents of a deceased beneficiary). These recipients are the people who will benefit from a new cost of living adjustment.
Here is the date on which the amount of the COLA increase will likely be announced.
The Fed has slowed the pace of monetary tightening to tame inflation, but policymakers are “looking at the broader picture” to determine future rate hikes.
Here's what the experts think will happen at policymakers' September meeting.
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The Supplemental Nutrition Assistance Program, formerly known as food stamps, is a federal program that, in coordination with state governments, provides benefits to low-income families to buy food.
This program is administered by each state, so some aspects of the benefits may vary, such as the program’s name. In the case of the state of California, SNAP is known as CalFresh. These payments are sent during the first 10 days of each month based on the last digit of each beneficiary's case number.
This is the California SNAP benefit payment schedule for September 2023.
The US has a growing demographic time bomb. At the 2020 census the population stood at 331 million people, growing 7.4% since 2010. This was the slowest increase since the great depression and will be compounded by the aging population.
You would think that efforts would be made to address this issue, either with increased immigration or by making it cheaper for new parents to raise children.
On the contrary, the US has eye-wateringly expensive childcare.
Travel and tourism have make a strong comeback in the US after the pandemic, and the country continues to be one of the top destinations in the world.
According to finance website Insider Monkey, revenue from the travel sector is expected to reach $190 billion this year, while the country’s tourism industry is worth over $1.2 trillion.
The website has compiled a list of top tourist sites in the US, and New York was shown to be home to two of the most visited tourist attractions- Times Square and Central Park.
Hollywood strikes cost economy 17,000 jobs in August
The labor market continued to cool in August as the ongoing double strike in Hollywood registered a hit to the jobs report for the first time last month.
According to data released by the Bureau of Labor Statistics, employment in motion picture and sound recording industries decreased by 17,000, "reflecting strike activity."
The writers' strike is about to enter its fifth month while the actors' strike heads for month two on the picket lines.
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If you have not been paying off your loans or other financial obligations in a timely manner, your creditors have a legal recourse to collect the money that you owe them, and it can affect your take-home pay.
Wage garnishment is a legal process in which a portion of a person’s earnings is withheld by their employer and sent to a creditor in order to satisfy a debt.
This usually takes place when a person has failed to meet their financial obligations, such as paying off a loan, taxes, credit card debt, or child support. Wage garnishment is often used as a last resort by creditors, courts, or government agencies to get the money they are owed.
Regardless of whether you are single or not, the amount you would need to earn to make ends meet in the United States can vary significantly based on various factors, including location, lifestyle, and individual preferences.
The cost of living also varies widely across different states and cities, with urban areas generally having higher living expenses compared to rural areas. However, single people face certain challenges that are born of their civil status.
Extreme weather poses challenges to small businesses
For small businesses that rely on summer tourism to keep afloat, extreme weather is replacing the pandemic as the determining factor in how well a summer will go.
With heat waves, fires and storms becoming more frequent and intense, small businesses increasingly see extreme weather as their next long-term challenge.
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Hurricane Idalia brought significant damage and flooding as it passed through the southeastern United States. Following its passage, federal disaster assistance was made available to the state of Florida to supplement recovery efforts in the affected areas.
If you live in one of these areas, you may qualify for assistance that may include grants for temporary housing and home repairs, low-interest loans to cover uninsured property losses, and other programs to help people and business owners to boost their recovery.
The application period for federal student loans has ended. You need to have submitted a free application for Federal Student Aid, or FAFSA, by the end of June 2023.
The only other option for getting a student loan is a private loan. These can be applied for and ratified within hours if you meet the requirements.
What will be happening with fuel prices today
With visits to the pump rather flat and the price of oil hovering around the $80 per barrel mark, the national average for a gallon of gas will likely stay where it is through this holiday weekend.
Hurricane Idalia may cause regional price jumps due to station damage, flooded roads, and power outages, but as in past years, these things are usually fixed in a few weeks.
Labor Day fuel prices are high
Labor Day weekend is typically one of the busiest travel weekends in the United States. Many people take advantage of the long weekend to go on vacations, visit family and friends, or simply enjoy a short getaway.
Previous years’ prices have been affected more by Labor Day demand, but analysts believe there will be no significant change in the price of fuel this time around.
That doesn't mean they aren't already comparatively high.
In the US, Labor Day has been held on the first Monday in September since the 1880s. There have been efforts to switch it to May to align it with International Workers’ Day, but remnants of Cold War tensions have soured this endeavor.
Good morning and welcome to AS USA's live financial blog!
As we celebrate Labor Day, follow along as we bring you the latest news on SNAP benefits, Social Security updates, and student loan repayment plans.
We'll also be reporting on other financial news affecting US consumers as the job market cools, consumers ramp up spending, and the government continues working to bring down inflation.