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Kamala Gets Great News

A strong jobs report released on Friday indicates that the labor market is thriving, easing concerns that a recession might be on the horizon. In addition, the port strike, which had raised fears of widespread economic disruption, has come to an end.

Within just 24 hours, two major risks that were looming over the economy seem to have been resolved, at least temporarily. This reduces the chance of economic upheaval with only weeks left before the election, a time when voters are expected to be heavily influenced by economic factors.

Economist Edward Hearn from payroll processing firm UKG commented, “Good news all around today for the frontline workforce.”

In a broader context: Late last night, the dockworker union reached a tentative agreement with the United States Maritime Alliance. Reports indicate the deal includes a wage increase of around 62% over the next six years. Economists had warned that a prolonged strike could harm the GDP and labor market and might lead to supply chain issues during the holiday season. This temporary contract extends until January 15, beyond the election, leaving the possibility of future negotiations for the next administration.

Following the resolution of the strike, the positive jobs report was released the next morning. For several months, there were signs of weakness in the labor market, but this new data suggests those concerns were largely unfounded. The economy added 254,000 jobs, the highest number since the beginning of 2024. The unemployment rate also dropped slightly to 4.1%.

Adding to the optimistic outlook, job gains for July and August were significantly revised upward, dispelling fears that the summer slowdown economists had been concerned about actually occurred.

While the economy isn’t without its challenges, it continues to provide a relatively favorable environment, with improving borrowing conditions and declining inflation. This economic backdrop is likely to play a significant role in shaping voter sentiment in the lead-up to the election. President Biden and Vice President Harris are sure to emphasize these positive developments as part of their campaign, while keeping a close eye on any potential shifts that could impact the final weeks of their race.


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