Finance

The US added 818,000 fewer jobs this year than originally estimated

Published

2 months ago

August 23, 2024

Business Finance News

The labor market isn’t as strong as predicted, with 818,000 fewer jobs. (iStock )

The U.S. Bureau of Labor Statistics just reported that the U.S. added 818,000 fewer jobs over the last 12 months (through March) than they previously predicted. The -0.5% difference was reported in the preliminary estimate of the annual revision to the BLS employment series. Consumers won’t know the final numbers until February.

The largest discrepancy occurred in the professional and business services sector, with the revision showing 358,000 fewer jobs than originally reported. The retail industry had the second-largest revision at 129,000 fewer jobs. Manufacturing came in third with 115,000 fewer jobs.

The labor market isn’t in a dire place, but the unemployment rate still hovers near 4.3%, which is higher than the beginning of 2023, Jerome Powell, the Chair of the Federal Reserve, explained in recent comments.

The unemployment rate isn’t due to increased layoffs, but rather the large increase in the supply of workers. It’s also due to “slowdown from the previously frantic pace of hiring,” Powell said. Generally speaking, the job market is getting stronger.

“Overall, the economy continues to grow at a solid pace,” Powell explained. “But the inflation and labor market data show an evolving situation. The upside risks to inflation have diminished. And the downside risks to employment have increased.”

If you are struggling with the effects of inflation, a personal loan with a low interest rate can help you pay down debt faster. Visit Credible to find your personalized interest rate without affecting your credit score.

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The Fed is still poised to cut rates in September

Consumers have been waiting for the Federal Reserve to cut rates since the possibility of multiple rate cuts was announced at the beginning of the year. September finally appears to be the meeting where rates will be cut.

The Fed has held off cutting rates due to consistently high inflation. When inflation drops closer to 2%, the Fed is more likely to slash rates. A large majority of Federal Reserve officials claimed the central bank is likely to cut interest rates slightly in September, according to minutes from the policy meeting in July.

“Our restrictive monetary policy helped restore balance between aggregate supply and demand, easing inflationary pressures and ensuring that inflation expectations remained well anchored,” Powell said.

With inflation on the right trajectory, after a dip in progress earlier in the year, Americans can expect rate cuts soon. These cuts affect borrowing costs for mortgages, vehicles and student loans, among other lending options.

Using a personal loan to pay off high-interest debt may help you reduce your monthly expenses and put money back in your wallet. Credible can help you find your personalized interest rate today.

HIGHER RATES TO LINGER, FED MAY MAKE CUTS IN SEPTEMBER

Consumer sentiment stabilizes

Consumer sentiment regarding the economy has stabilized over the last month, signaling that Americans are slightly more positive about where the economy is at than they were a few years ago. In August, sentiment inched up by 2.1%, marking the fourth consecutive month sentiment remained about the same, PYMNTS reported.

The future economic outlook hasn’t remained as steady, instead shooting up to its highest level in five months, largely due to the election season. Election years don’t tend to alter the current economic sentiment but can impact American’s future thoughts on where the economy is going.

“Survey responses generally incorporate who, at the moment, consumers expect the next president will be,” explained Joanne Hsu, director of the University of Michigan Surveys of Consumers. “Some consumers note that if their election expectations do not come to pass, their expected trajectory of the economy would be entirely different.”

The rise in consumer sentiment for the future is thanks, in part, to Democrats feeling more confident in the new Democratic presidential nominee, Vice President Kamala Harris. Lowering inflation has also contributed to a brighter outlook, PYMNTS reported.

If you’re concerned about the state of the economy, think about paying down your high-interest debt with a personal loan at a lower interest rate. Head to Credible to speak with a personal loan expert and get a rate quote.

HOUSING AFFORDABILITY TOP CONCERN FOR YOUNGER VOTERS THIS PRESIDENTIAL ELECTION: SURVEY

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Finance

Biden administration forgives $4.5 million in student debt for 60,000 borrowers

Published

7 hours ago

October 18, 2024

Business Finance News

Borrowers who serve in the public service sector and government are eligible for this forgiveness. (iStock )

Another 60,000 student loan borrowers will receive student loan relief in the coming weeks. The Biden Administration announced $4.5 billion in relief for public service workers such as nurses, teachers and social workers.

The relief comes as a fix to the original Public Service Loan Forgiveness (PSLF) program. The program was initially signed into law by George W. Bush in 2007 to give non-profit and government employees loan forgiveness after 10 years in the workforce.

“Before President Biden and Vice President Harris entered the White House, the Public Service Loan Forgiveness program was so riddled by dysfunction that just 7,000 Americans ever qualified,” U.S. Secretary of Education Miguel Cardona said in the Education Department’s press release.

The new relief intends to pay down the loans of borrowers who were originally denied acceptance or who have still not received relief after making the 120 required monthly payments.

“Today’s announcement comes on top of the significant progress we’ve made for students and borrowers over the past three years,” President Joe Biden said in a statement.

“That includes approving debt cancelation for nearly 5 million Americans across all our various debt relief actions; providing the largest increases to the maximum Pell Grant award in over a decade; fixing Income-Driven Repayment so borrowers get the relief they earned; and holding colleges accountable for taking advantage of students and families,” Biden said.

If you have private student loans, federal relief doesn’t apply to you, unfortunately. If you’re looking to lower monthly payments and ease the burden of student loan debt, consider refinancing. See what your interest rate could be via the online marketplace Credible.

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Resources available for students affected by the recent hurricanes

Hurricanes Helene and Milton have wreaked havoc on many communities in the south, causing serious physical damage and severely disrupting educational services. In response, the U.S. Department of Education released resources to help students and institutions of higher education recover.

“I have directed our team at the Department of Education to leverage every possible resource available to meet the needs of impacted students, families and school communities,” Cardona said.

The new resources include support for recovery needs like mental health care for students and educators, technical assistance and flexible financial aid policies at affected universities. Many students are also automatically being enrolled in natural disaster forbearance, so they don’t have to worry about their loans while recovering from the hurricanes.

Most of these resources will be concentrated on Georgia, which has seen a substantial amount of damage. The Readiness and Emergency Management for Schools Technical Assistance Center is a specific program Georgians have access to. It helps education agencies manage their safety, security and emergency management programs.

The Early Childhood Technical Assistance Center is another option that offers resources and links from organizations that help families and children, including those with disabilities, cope with disasters.

If you don’t have federal student loans that qualify for assistance, refinancing could cut your monthly payment. You can use Credible to compare student loan refinancing rates from multiple private lenders all at once without affecting your credit score.

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$70 million in federal funding going to schools for additional mental health services

Along with aid to student loan borrowers and students affected by natural disasters, the Biden administration is also directing federal funding towards mental health services in K-12 schools. The administration announced a $70 million investment that will expand students’ access to mental health support.

“We know that students are more likely to access mental health support if it’s offered in schools, and our educators and school communities are on the front lines when a student is struggling,” Cardona said in the announcement.

“The need for mental health support in our schools remains high,” Cardona said. “Today’s announcement of an additional $70 million will allow more institutions and schools to train and hire mental health professionals – especially in underserved communities – ensuring that every student has access to the care they need to thrive.”

The new funding, combined with the Bipartisan Safer Communities Act (BSCA) investments, will go to 333 grantees across 48 states. It will help communities train and hire 4,000 more mental health professionals across the country.

To see what you’d pay on a private student loan, you can visit Credible today to view a rates table that allows you to compare fixed and variable rates from multiple lenders.

LESS THAN A THIRD OF AMERICANS APPROVE OF HOW BIDEN HAS HANDLED STUDENT LOAN DEBT