Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.
Small Business News Highlights for August 5:
- Drop in small business jobs sends small biz employment numbers back to April levels
- Older workers especially vulnerable to pandemic layoffs
- White House signals willingness to play ball on stimulus package
Small business employment is falling again
“We saw the July jobs index drop. That puts us back to about April, so we’re flat over the last 3 months.”
Small business employment is falling again and the drop is undoing any progress gained over the past 3 months according to a new survey. A dip in the July jobs index means that the number of jobs is essentially where it was in April during the height of the pandemic. The report also indicates a decline of -3.65% from a year earlier.
On the flip side, the numbers also show a 9% increase in the number of hours worked by employees, indicating that people are working longer hours to meet demand.
Overall, private employers added just 167,000 jobs in the month of July.
Older workers vulnerable to pandemic layoffs
“Older workers are disproportionately impacted with job losses during the current pandemic, especially because not all will be able to return to the workforce.”
Economists have determined that if current trends stay on pace, nearly 4 million older workers will involuntarily be out of work by October of this year.
Older workers are especially vulnerable to pandemic-related changes in employment since they have a more difficult time finding new jobs, face a higher risk of death related to catching the coronavirus, and are closer to retirement age. Record-breaking numbers of Americans are unprepared for unemployment and these unexpected job losses have the potential to thrust unemployed older workers into poverty or near poverty for the rest of their lives.
Congress still debating next stimulus bill
“If there’s not a deal by Friday, there won’t be a deal.”
The White House has reportedly signaled that the Trump Administration is willing to make concessions and raise the amount of unemployment benefit payments as Democrats have reduced their request for funding for the U.S. Postal Service.
Republicans have offered a federal supplement of $400 per week in unemployment benefits through December, and Democrats have dropped their request from $25 billion to $10 billion to aid the USPS.
The Trump Administration has also agreed to an extension of the moratorium on evictions and offered $200 billion in aid to states, up from $0 in the Republican’s initial bill.