US financial news summary | 5 September 2023
Headlines: Tuesday 5 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 and Illinoisto go up in 2024
- New requirements to receive SNAP benefits in 2024 to take effect soon
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.
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.
Some Social Security beneficiaries will receive two payments in September.
The cost of living adjustment will mean an increase in Social Security payments to boost purchasing power.
Social Security has been around for nearly 90 years, primarily providing monthly payments to retired workers whose benefit depends on a set of factors.
Here are the maximum amounts that recipients can receive in 2023...
The average Social Security payment in 2023 is $1,827, however, depending on a series of factors, you could possibly get much larger payments. Here’s how…
US employers struggling to get workers back in the office
At the onset of the covid-19 pandemic, workers were sent home by the droves to carry out their jobs remotely. It’s been over three years since that mass adaptation of work-from-home policies and bosses want their employees back at the office.
While companies have been trying to woo workers back in the US, they haven’t had the same success as their counterparts in other parts of the world. Some big names are dropping the carrot and grabbing the stick such as Amazon. The tech giant’s boss recently said that “it’s probably not going to work out" at the company for those who can’t be in the office three days a week.
Likewise, Facebook set 5 September as a start date for employees to begin returning to the office three days a week or face termination.
So why are American workers dragging their feet to go back to the office compared to employees in other parts of the world? Irina Anghel at Bloomberg News explains…
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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.
3M to settle lawsuit for $6 billion after earplugs caused hearing loss
3M has agreed to pay more than $6 billion to consumers and military members who alleged the company's ear plugs were defective and caused hearing loss, tinnitus and other hearing-related injuries.
Lawyers representing the plaintiffs in the class-action lawsuit called it a historic agreement and a victory for veterans.
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Hollywood actors flock to Cameo to make money amid strikes
More celebrities are turning to the video-sharing platform Cameo as a way to make money as the Hollywood strikes drag on.
According to Cameo, over 2,500 celebrities have joined or reactivated their accounts since the actors' strike first began on July 14. That's a 180% month-to-date increase from where the platform would have been pre-strike, the company said.
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The Federal Reserve 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 the policymakers' meeting in September.
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.
Climate risk to keep pushing insurance rates up
Frequent weather disasters, caused in part by climate change, are taking their toll on the pockets of homeowners and prospective buyers.
Some home insurers have chosen to stop issuing policies in heavily impacted states like Florida, California, and other parts of the country. In other cases, insurers are raising prices or reducing coverage.
Industry experts say there’s likely to be a continued ripple effect across the country, as weather events tied to climate change proliferate. Insurers are expected to tighten the reins on risk and reinsurance will become harder to come by.
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The District of Columbia and 30 states in the country, including Illinois, have a higher minimum wage than the one set by the federal government. 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.
The US monthly jobs report is produced by the Bureau of Labor Statistics (BLS). This data reveals the numbers 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 non-farm payrolls increased by 187,000.
However, farm payrolls are not part of the report. Here's why.
Americans rejoining US labor force
Participation in labor plunged in the US 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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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.
Find out more about the Housing Choice Voucher program.
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.
Good morning and welcome to AS USA's live financial blog!
As September gets well underway, 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 Federal Reserve prepares for another meeting to decide if interest rates will be increased once again.