Happy Wednesday and welcome back to On The Money, where we’re excited to celebrate the big comeback sports victory of the day—the Mets’ extra inning win over the Brewers. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
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THE BIG DEAL—Job openings stayed at record high of 9.2 million in May: Job openings held at a record high of 9.2 million in May while resignations dropped slightly from a historic peak, according to data released Wednesday by the Labor Department.
- The number of open jobs on the final business day of May changed little from the peak set in April.
- Quits fell to 3.6 million from a record high of 3.9 million in April, but remained well above levels seen earlier in the year.
“It’s a job seeker’s market as worker demand remains at record highs,” said Daniel Zhao, senior economist at Glassdoor, in a Wednesday analysis. “Elevated quits emphasize that labor shortages are a double whammy for employers — it’s not just harder to hire workers, it’s also harder to retain them.” I explain here.
The background: The U.S. added 850,000 jobs in June, rising sharply from gains of 583,000 in May and 278,000 in April, as industries hit hardest by the pandemic began hiring in droves. Even so, businesses in the leisure, hospitality and retail industries have struggled to bring in enough workers to keep up with soaring consumer demand.
- Restaurants, bars and hotels created 89,000 new openings in May before hiring 340,000 workers in June, but were also one of the only sectors where resignations continued to rise.
- “While no longer at record levels, the high level of quits means workers are still confident enough to leave their jobs for a new one,” Zhao said.
LEADING THE DAY
Biden to issue executive order to curtail noncompete clauses: President Biden plans to sign an executive order to crack down on noncompete agreements used by employers to prevent their employees from moving to rival firms, the White House announced Wednesday.
- The president’s order would encourage the Federal Trade Commission (FTC) to ban or limit noncompete agreements.
- In an effort to limit the number of jobs in the U.S. that require a license, Biden’s forthcoming order would also encourage the FTC to ban unnecessary occupational licensing restrictions, which could impede workers’ ability to move and gain more in wages.
“Roughly half of private sector businesses require at least some employees to enter noncompete agreements, affecting over 30 million people. This affects construction workers, hotel workers, many blue-collar jobs, not just high-level executives. He believes that if someone offers you a better job, you should be able to take it. It makes sense,” White House press secretary Jen Psaki said during a press briefing.
The Hill’s Alex Gangitano explains here.
Top Republican signals early resistance to any global tax deal: Rep. Kevin Brady (R-Texas) on Wednesday said he thinks it will be challenging for Congress to sign off on an international tax deal, as the Biden administration seeks to make progress on such an agreement this week.
“I think this is frankly years from being done, and I’m confident that Congress will reject any tax agreement that advantages foreign companies and workers over U.S. companies, or surrenders a key part of America’s tax base that we’ll need frankly to pay for our government services going forward,” Brady, the top Republican on the House Ways and Means Committee, said on a call with reporters.
Brady’s comments come as Treasury Secretary Janet Yellen is set to attend the Group of 20 (G-20) finance ministers meeting later this week in Venice, Italy. International tax negotiations are expected to be a key topic of conversation at the meeting.
- The G-20 and the Organization for Economic Cooperation and Development (OECD) have been working to reach an agreement in two areas: Rules about the location of where companies’ profits are taxed, and a global minimum tax.
- Congress would play a role in U.S. implementation of an agreement. Both chambers would need to vote to update U.S. tax laws, and the Senate would also likely need to vote to update tax treaties.
The Hill’s Naomi Jagoda brings us up to speed.
ON TAP:
- Tuesday, July 13: “Small Business Recovery: Minneapolis” — The Hill makes its next virtual stop on our Small Business Recovery road trip in Minneapolis. What support do minority-owned firms in the city still urgently need, and what opportunities at the federal and local levels are being created to help these businesses recover and thrive long-term? Feat. Rep. Angie Craig (D-MN), Minneapolis Mayor Jacob Frey, and more. RSVP here.
- Thursday, July 15: “Revitalizing America’s Cities” — As cities look to rebuild in a more inclusive and resilient manner, what role can microbusinesses play? On Thursday, July 15 at 1 PM, Miami-Dade County Mayor Daniella Levine Cava, Montgomery Mayor Steven Reed, Baltimore Mayor Brandon Scott, Dayton Mayor Nan Whaley, and more will join for a virtual conversation on how microbusinesses could re-energize our cities. RSVP here.
GOOD TO KNOW
- President Biden on Wednesday swiped at Senate Minority Leader Mitch McConnell (R-Ky.) for pointing out the local benefits of an economic relief law that the GOP leader and other Republicans opposed.
- Federal Reserve officials debated last month how quickly they would need to begin pulling back support for the U.S. economy as both the pace of recovery and inflation exceed their expectations.
- The attorneys general of 36 states and Washington, D.C., sued Google on Wednesday, alleging the company’s control over its Android app store violates antitrust laws.
- President Biden on Wednesday traveled to a swing district in Illinois to pitch the massive jobs and families plan that Democrats expect to pass through reconciliation.
ODDS AND ENDS
- Drugmakers are resuming their annual lobbying battle with the paper industry over an obscure clause slipped into a key spending bill.
- Op-Ed: “Is the IMF repeating its mistakes from the global financial crisis?”