Friday Five | July 29, 2022
A recap of this week’s top-five news items and resources from the intersection of business and government.
1. U.S. economy shrinks again in second quarter, reviving recession fears
Data released yesterday by the Bureau of Economic Analysis showed the U.S. economy shrank again for a second quarter, at a 0.9 percent annual rate, signaling a possible recession. In the past, six months of contraction was a clear indicator of the economy entering a recession. The official determination is made by a panel of experts and is not common when unemployment is near record lows. The White House has pushed back against concerns that the economy may be slowing, pointing to a strong labor market as a sign that the recovery remains on track. However, inflation hitting 40-year highs for several months and broader worries about the global financial outlook combined with aggressive interest-rate hikes have led many economists to predict a recession is underway.
Read the full story here.
2. Five ways the Fed interest rate hike will impact Americans’ wallets
The Federal Reserve continues its aggressive fight to combat inflation, raising its interest rates again this Wednesday by 75 basis points. The Fed had raised rates by the same amount last month to counter soaring costs, making it the first rate hike of that magnitude in nearly thirty years. Raising rates is the Fed’s primary tool to combat rising inflation by making it harder for consumers to borrow and consequently slowing down demand. How else are Americans impacted?
Here are five ways higher interest rates will impact your wallet.
3. U.S. Chamber of Commerce: Understanding America’s labor shortage: The most impacted industries
The COVID-19 pandemic caused a major disruption in America’s labor force, which many refer to as The Great Resignation. In 2021, more than 47 million workers quit their jobs, many of whom were in search of an improved work-life balance and flexibility, increased compensation and strong company culture. However, data on current work trends, labor participation and quit rates captured by the U.S. Chamber of Commerce tell a different story. They argue that the labor force can be better described as “The Great Reshuffle” because hiring rates have outpaced quit rates since November of 2020, meaning many workers quitting their jobs are being re-hired elsewhere. The Director of Global Employment Policy & Special Initiatives at the U.S. Chamber of Commerce, Stephanie Ferguson, dives deep into which industries have been impacted the most by this reshuffle in the nation’s workforce and how businesses can address the continued worker shortage.
Read the full story here.
4. Maryland adds 1,500 jobs in June, unemployment stays at 4%
According to preliminary figures released last Friday by the U.S. Department of Labor’s Bureau of Labor Statistics, Maryland added 1,500 jobs and the unemployment rate remained at 4% in June. June’s unemployment rate is the lowest since the beginning of the COVID-19 pandemic and compared to June 2021, Maryland jobs are up by 86,900 (3.3%). The education and health services sector experienced the most growth with an increase of 4,000 jobs from the health care and social services (3,500) and educational services sub-sectors (500).
Read the full story here.
5. House passes chips and science bill, sending measure to Biden’s desk
On Thursday, the House passed a $280 billion bill to strengthen the domestic chip manufacturing industry and finance scientific research to boost the United State’s global competitiveness. The CHIPS and Science Act has passed through both chambers and has been sent to President Biden’s desk for final approval, marking a significant milestone in congressional action to increase the nation’s competitive edge against China.
Read the full story here.
3 days left! Get your $99 ticket!
Congressional Roundup 2022: Sept. 14 in D.C.
Receive a front-row seat on Capitol Hill for a program tailored specifically to your top business priorities. You will hear directly from the Maryland Delegation and experts from the U.S. Chamber of Commerce.
Visit our event page to view our speaker lineup.
Purchase tickets before August 1 and enter code at checkout: EB22
