On The Money: White House warns there's likely no deal with no agreement by Friday | More generous unemployment benefits lead to better jobs: study | 167K workers added to private payrolls in July

On The Money: White House warns there's likely no deal with no agreement by Friday | More generous unemployment benefits lead to better jobs: study | 167K workers added to private payrolls in July
© Greg Nash

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THE BIG DEAL—White House warns there's likely no deal with no agreement by Friday:

White House chief of staff Mark MeadowsMark Randall MeadowsHouse moves toward spending vote after bipartisan talks House Democrats mull delay on spending bill vote Southwest Airlines, unions call for six-month extension of government aid MORE on Wednesday appeared to put a time limit on talks to reach a new deal on a congressional coronavirus relief package, saying if negotiators can't reach an agreement by Friday, they likely won't be able to do a deal.

"I think at this point we’re either going to get serious about negotiating and get an agreement in principle or I've become extremely doubtful that we’ll be able to make a deal if it goes well beyond Friday," Meadows said.

"We’ve been spending so much time together that if you’re not making progress, there’s no sense to continue," he added.

The comments from Meadows could be an effort to try to put pressure on the sides to compromise. 

Regardless, the self-imposed deadline appears to be a tall order. The Hill’s Jordain Carney explains why here.

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The context: The two sides are under enormous pressure to get a deal. An increase in unemployment benefits has expired as millions of Americans remain out of work, and a federal moratorium on certain evictions has also lapsed.

But negotiators are far apart on key sticking points such as unemployment insurance and have not yet agreed on even the price tag for a bill.

LEADING THE DAY

167K workers added to private payrolls in July as US labor market rebound slowed: ADP

U.S. private-sector businesses added 167,000 workers to payrolls in July as rising coronavirus cases across much of the country slowed the pace of the labor market recovery, according to the ADP National Employment Report released Wednesday.

The report — compiled by payroll and benefits processor ADP and Moody’s Analytics — found a smaller rise in non-farm private sector employment after a 2.4 million increase in June.

"Job growth slowed sharply in July," said Mark Zandi, chief economist at Moody's Analytics, in a call with reporters Wednesday. "With the small July gain, private sector employment is still 13 million jobs or about 10 percent below its pre-pandemic February peak."

I explain why here.

More generous unemployment benefits lead to better jobs: study: More generous unemployment insurance (UI) benefits help workers find better jobs, according to a study published by the National Bureau of Economic Research.

"Longer UI benefit durations decrease the mismatch between workers’ educational attainments and the educational requirements of jobs," wrote the study's authors, Ammar Farooq, Adriana D. Kugler and Umberto Muratori.

  • Critics of more generous unemployment benefits argue that receiving cushy benefits for months on end dissuades people from going back to work.
  • The paper, however, found that having a better safety net let people find jobs that were more in line with their skills and education rather than rushing to take the first job that comes along. That, they argue, is better for the worker, the employer and the economy overall.

The Hill’s Niv Elis breaks it down here.

GOOD TO KNOW