The multiple factors dragging on the job market, according to Marty Mucci, CEO of payroll provider Paychex, should abate before the fourth quarter. In an interview with CNBC’s “Mad Money,” he stated, “I think we kind of see this all coming together around the September time frame, and I think it will really open up the market to allow people to be able to hire a little bit easier.” As the US economy recovers from widespread layoffs caused by the Covid-19 lockdowns, a dispute has erupted over whether federal unemployment benefits have discouraged job seekers from looking for work. Some states have stopped receiving federal payments of $300 per week. The Wall Street Journal reported Sunday that Missouri Governor Mike Parson, who was one of the first four states to stop the benefits, claimed the federal program had “worsened the labor difficulties we are confronting.” The same day, the New York Times reported that lowering federal assistance hasn’t boosted hiring in Missouri. According to Mucci, the hiring pace cannot be attributed to a single factor. “What we’re hearing from our clients is that it’s actually a mix of several things that’s making it difficult to hire,” he explained. According to Mucci, more Americans are feeling financially comfortable this summer, thanks in part to stimulus payments to most taxpayers and the stock market’s outstanding performance. Vaccination rates and concerns about health safety, he continued, are also factors. Another issue for families, according to Mucci, is that day care centers and schools are not working at full capacity. “I believe people are saying right now there are all those issues I outlined, and when you balance it out, I believe they’re waiting,” Mucci explained. “They’re going to take a little bit of a wait-and-see approach, and then I believe [hiring] will kick up again in September.” Do you have any questions for Cramer? Cramer may be reached at 1-800-743-CNBC. Interested in learning more about Cramer’s world? Make contact with him! Money that’s out of control Jim Cramer on Twitter Twitter, Facebook, and Instagram are three of the most popular social media platforms. If you have any questions, comments, or recommendations for the “Mad Money” website, please send them to madcap@cnbc.com. Continue reading
