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 October 1:
- 837,000 new unemployment claims filed last week
- America experiencing “female recession” threatening to undo decades of progress
- Mnuchin and Pelosi continue talks as House prepares to vote
Another 837,000 Americans file for unemployment
“Adding up all the different government benefits, 26.5 million people received jobless aid in the week ended September 12, up by about half a million.”
Another 837,000 Americans filed for first time unemployment benefits last week. While the number is down slightly from the previous week, it does not include updated numbers from California, which paused processing initial claims for 2 weeks.
Unfortunately, more layoffs are coming, with both Disney and American Airlines announcing that they would be letting tens of thousands of workers go.
America experiencing ‘female recession’
“We just cannot get out of this — the hole that we’re in — in any reasonable way, without doing huge scarring, without a much stronger care infrastructure.”
As women continue to bear the disproportionate brunt of the COVID-19 pandemic, some economists have declared that the U.S. is experiencing its first “female recession” and warning that it could undo decades worth of progress made by women in the workforce.
The unemployment rate for Black and Latina women remains above 10%, though it’s dropped to just over 7% for White women and women between the ages of 24 and 54 are dropping out of the workforce to stay at home to take care of children out of daycare and school. Prior to the pandemic, the gap in workforce participation between men and women was the narrowest that it’s ever been.
Economists worry that tens of millions of women may never return to work, even after an effective vaccine becomes widely available. They estimate that the GDP in 2030 could be $1 trillion lower than it would be otherwise due to women staying out of work.
Mnuchin and Pelosi continue talks as House prepares to vote
“Hopefully we can find our common ground on this and do so soon.”
Speaker of the House Nancy Pelosi and Treasury Secretary Steve Mnuchin have continued negotiations on another round of stimulus legislation today as the House prepares to vote on their version of the bill. While both sides agree that measures need to be taken quickly, and should involve more direct payments to Americans, they are still far apart on a host of other issues.
Even if they reach an 11th hour agreement that is passed by the House, the bill would still have to be passed by the Senate.