Employment recovery going backward in states hit hard by virus, small business data shows

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Data from scheduling firm Homebase shows that the labor market recovery has reversed in some of the states hardest hit by the virus, including Florida and Texas.

CNBC looked at the trailing seven-day average of employees working from July 19 compared with June 14, which captured much of the time represented the official June jobs report from the Labor Department. The data showed that six states, including Florida, Arizona and Texas, saw the number of employees going to work decline by at least 5% over that period.

The United States has had more than 3.8 million confirmed cases of the virus and over 140,000 deaths, according to Johns Hopkins University. The Homebase data measures employment at certain small- and medium-sized businesses and is not representative of the entire economy, giving a heavier weight toward the service sector. Researchers at the St. Louis Branch of the Federal Reserve identified the data as showing promise ofThe small business data also mirrors information from the weekly jobless claims data, which has shown more than a million initial claims every week since the crisis began.

If a significant slowdown in the labor market recovery is shown in the official monthly data for July and August, that could be a blow to the optimism on Wall Street about the recovery, Deutsche Bank said.

 

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Those states opened up earlier so I would think I the highest delta would have happened earlier. Why not just show the % difference between pre-COVID employment and today? That’s the clearest picture of recovery.

Texas, Arizona and Florida will be blue states.

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