Jobs Report Friday!
Jobs report Friday! Everyone knows the first Friday of the month is the most exciting because the U.S. Bureau of Labor Statistics releases the previous month’s employment numbers. Fun!
July’s report was a mix of good and bad news. Nearly two million jobs were added and unemployment dropped to 10.2%, much lower than the nearly 15% peak in April. The service sector showed the best signs of recovery adding more than 500 thousand jobs.
However, the number of people unemployed between 15 and 26 weeks rose to its highest level in the measurement’s history.
This is particularly negative because one component of the 2008 recession that made it more devastating than previous crashes was the number of people unemployed for a long time. It looks like this trend might repeat in 2020, and that has many investors and economists worried.
U.S. stocks reacted poorly to the employment report. Investors will be watching Washington to see if an economic stimulus plan comes out this week and how it might address the still high unemployment numbers.
One might think that millions of people forced to stay home would be great news for sports betting companies. Unfortunately for DraftKings, many of the world’s biggest sports leagues were put on hold like so many other aspects of life over the past few months.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.