Governor Youngkin has announced Virginia’s unemployment fell to 2.8% in June with the number of employed Virginians expanding to more than 4.2 million.
“This is how the employment rates of the major industries compared to those from a year ago, according to the release:
- Leisure and hospitality, up 62,300 jobs (+17.9%)
- Education and health services, up 26,200 jobs (+4.9%)
- Professional and business services, up 16,400 jobs (+2.1%)
- Trade, transportation, and utilities (+9,200 jobs)
- Miscellaneous services (+4,600 jobs)
- Manufacturing (+4,200 jobs)
- Information (+3,200 jobs)
- Construction (+500 jobs)
- Mining and logging (+400 jobs)
- Government (-2,300 jobs)
- Finance (-1,300 jobs)”
Meanwhile, the White House is looking at very bad economic news coming their way this week. Politico.com refers to it as a “category 5 storm of economic news”.
Consumer confidence numbers (which currently stink) hit on Tuesday. A Federal Reserve meeting and decision on interest rates, coupled with a press conference from Fed Chair Jerome Powell, follows up on Wednesday.
The first reading on second quarter economic growth drops on Thursday. And the latest numbers on our vexing run of historically high consumer price inflation close out the monster run of data on Friday. In a note to clients today, analysts at Deutsche Bank suggested the flood of information will “leave you breathless.”
And that brings us to the most important economic event of the week on Wednesday, when the Fed decides how much to hike interest rates to cool off the economy and dial down inflation that hit 9.1 percent in June, a 40-year high. Democrats and progressives want the Fed to tread gently. But Wall Street expects another three quarter point hike (that’s big) with several more half point hikes to come. Such an aggressive war on inflation often ends with at least mild recession. A Fed-induced slowdown probably wouldn’t really hit until after the midterms. But it could arrive just in time for the 2024 presidential campaign kickoff.”
If the GDP drops again as expected on Thursday for the second quarter in a row we are in a recession, although the Biden administration is unlikely to label it as such.
No doubt Biden will try desperately to spin all the bad news likely to come this week, but there’s only so much he can do with a string of bad economic news because of his administration’s bad policies. Afterall, there’s nothing more important than climate change, the driving force in the Biden White House.