Employment recovery may be slowing as virus cases climb

Employment recovery may be slowing as virus cases climb
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  • Data from Homebase, a scheduling firm that works many small and medium sized businesses in the service sector, shows that employment may have declined over the past week in some areas.
  • The Homebase data is not a representative sample of the U.S. economy, but it does mirror the slowing recovery the weekly initial jobless claims data, which have slowed slightly over the past three weeks but are still at historically high levels.
  • Dave Gilbertson, the vice president of strategy and operations for Kronos, said his company’s data has also shown job growth tapering off.

Alternative data sources that track hourly employees show the jobs recovery slowing in recent weeks, as the growth of coronavirus cases accelerates in major cities like Phoenix, Houston and Los Angeles.

Data from Homebase, a scheduling firm that works with many small and medium-sized businesses in the service sector, show that employment may have declined over the past week in some areas, with fewer employees working on June 24 than the average from June 15-19 in the majority of states.

Earlier in June, an economist at the St. Louis Fed identified Homebase as a data set that was more predictive of the surprise May jobs report than many economists. At the time, the data showed continued momentum in the weeks following the survey dates for the May employment report.

Source: CNBC

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