The Day at a Glance | August 20 2021

The Top

*The extension of unemployment aid in the US is being debated after the Delta variant`s fast spread; Biden reaffirmed that the federal program will come to an end in September.

*Formal employment in Mexico exceeded pre-pandemic levels in the 2Q21; most positions are part of the lowest salary jobs.

*Inflation for producers in Germany accelerated to their highest level since 1974 (10.4% annual in July).

*Retail sales receded in the United Kingdom, a sign of a loss of momentum in the recovery.

Economic environment

The Department of Labor proposed extending unemployment aid in the US. Secretary of Labor Marty Walsh assured that the Delta variant`s spread could force states to renew the unemployment aid program; in case it`s necessary to shut down the economy to contain the virus. Walsh made reference to cases such as Florida, which decided to suspend the aid program before the rest of the country, however, it now logs record COVID19 cases and faces risks of persistent unemployment; despite the fact that half of the state`s population has been vaccinated. Yesterday, both Walsh and Secretary of the Treasury Janet Yellen sent a letter to Congress to let the states of the union know that they could use emergency funds to extend unemployment aid. The current federal emergency unemployment program, which entails weekly payments of up to 300 dollars, comes to an end on September 6th. Up to 7.6 million unemployed people could be left without these benefits. For Walsh, the Delta variant`s spread is a risk that threatens to leave a large part of the population without a job for a longer period of time, which is why he believes it`s necessary to consider extending programs at a state level. At the moment, some companies have stopped their plans to have their workforce return to offices. Meanwhile, President Biden has reiterated that he will not seek to extend the federal unemployment programs beyond September, however, he has called for the most affected states to consider carrying out the programs for a longer period of time at a local level.