♪ romaine: from bloomberg world headquarters in new york, i'm romaine bostick. taylor: i'm taylor riggs. caroline is off today. romaine: a new report causing uncertainty over the fed timeline for tapering. all the sectors, restaurants, health care, government workers.

>> this was a lower number. >> weaker report. >> this has delta variant on it, coming out of a worldwide pandemic. >> one huge red flag for me. >> the hospitality number in the restaurant number. >> almost zero gain this month in that area. >> you will get bounced back in september. the market is looking through this in saying this is temporary. >> the fed is going to taper. >> the market pushing back to any taper announcement until december. >> and the emphasis that tapering is not tightening. taylor: what a world of voices we have had pretty much all day long. we continue with another great voice. joining us with her reaction, economic policy institute senior economist elise gould.

i am stunned by what everyone was highlighting their about leisure and hospitality, really no movement. is this a one-time blip, or can this be sustained? elise: it would be nice if it was a one-time blip. it really depends on this pandemic. we look at the reference period of july, when we saw a five-fold increase in covid cases. that is affecting leisure and hospitality. in june and july, you saw the numbers drive upwards. we are waiting and seeing with the longer-term trend looks like as the variant spreads throughout this country. romaine: we have been talking about the unequal and unevenness of this economic recovery. we did see concerning data with regards to the end of limit rate for black americans, also concerning data with regards to

women and how they fold into the economic rebound. elise: that is right, it is important to look across all sectors and demographic routes to see how the recovery is treating people differently. and it is. a lot of the recovery is going towards some of the more privileged in our economy, while other people are being left behind. we saw a ticking up of the black and employment rate, significant. we will see if it is sustained. the overall unemployment rate went down, so the black-white unemployment gap has been historic, but there is no excuse for it in the economy today. sonali: unappointed benefits are set to expire. what are we expecting next in terms of any pain that might be felt among folks being left out of this recovery? elise: unfortunately, there are going to be huge costs to unemployment insurance benefits. the pandemic employment

assistant programs -- assistance programs were being put in place, and we are still very much in a pandemic. we need those to protect people, protect workers and their families when it is still unsafe out there in many places in this country. taylor: to push back on that, do you see an argument for bringing supply back? because we don't have a demand problem for jobs, it sometimes seems we have a supply problem. elise: i would say it is a demand side problem. many people are still hesitant. we still are just now seeing schools opening. that gives more opportunities for parents to seek employment. there are still rising covid cases. that is going to give people pause on reentering. to think we have a labor shortage at all, we would have

to see wages rising even faster. and we are not seeing that at all. romaine: and there is a theory out there among some people who say, if you remove government support, maybe pushes people back and i am not your the data has supported that. but this weekend, the pandemic emergency on of limit program will be ending. the extended benefits program ends as well, a day before labor day. do you anticipate any shift in the labor market based on the expiration of those programs? elise: we have seen that some states have already expired benefits and the evidence from the states is not particularly strong in terms of getting work. i don't expect a strong response on the loss of benefits, on the other hand, the loss of benefits has made extreme hardship on workers and the families who depended on those benefits to make ends meet. taylor: as the biden

administration steps up efforts to provide more support to the economy, they are going to face pushback. if they have room for negotiation, any room to focus on the most urgent efforts, what money should they be focusing on first? elise: well, we think about what has cap some of this recovery back. obviously, we need to keep pushing forward on all the health measures. but many things have cap certain populations back, for instance, the care they have had to do for their family, their kids or older parents, other relatives. so one of the things that has been focused on is those kinds of investments in the care structure that can help at this moment and in the long run with building our economy back stronger. taylor: what do you want to see? we have talked about fiscal issues that you bring up. what would you like to see in the coming data in the coming months to make us feel more confident that the recovery is firmly underway? elise: i would like to see a

return in public-sector employment. that is still far below where it was before the pandemic, even though we have increased need for many services that public-sector workers provide. i think we need to see that return. i would like to see the black and employment rate come down. i would like to see women be able to reenter the workforce.so in many features, we are far from a recovery and we need the fed to keep their foot off the brakes to make sure we get a full recovery. taylor: elise gould, economic policy institute senior economist, we got very good insights. we talk about some of the disparities within the economic recovery. romaine: she brought up the government jobs and the main data point to something like 800,000 jobs below where we were the pandemic and government sector. if you are able to fill those

jobs, that gives you a bump read we came into the jobs report almost 6 million jobs in the hole versus before the pandemic. you could start adding them up to say when we get back to 6 million, but this is all about pace of recovery. we have talked about the last recovery, how slow it was, why the fed when it moved. and now, you have jay powell saying he's going to wait for the labor market to do its thing before they move well, labor growth starts slow, are they still going to wait? sonali: and the disparities are just incredible. we saw the unemployment rate for black americans rise, not fall. in the participation rate for women was very challenging in terms of challenges with childcare and other issues what is going to fix that? taylor: in the last recession, i remember i was writing unique bonds in two await-2009 and it was really austerity in the state and local government sectors, that they were trying to get budgets in order and were

not hiring, and did not even get back to the 2006 employment level. i love that you bring up again where we are in the public and private sector, and some of those jobs returning. romaine: i wish i could do a whole show on that. some of the action we have seen in certain states definitely gives a good view into the economies in certain pockets of this country. sonali: i hope the robots are not taking over. taylor: coming up, we continue to focus on jobs and it is romaine's favorite, municipals. thousands of cities, towns and states across the u.s. are facing the most acute labor shortage in recent memory. is it a supply issue? a demand issue? we discuss it next. this is bloomberg. ♪

♪ romaine: welcome back. we are focused on the u.s. jobs report, a disappointed report. it showed a drop in the amount of government work, down 8000 for the month of august. they are finding it hard to compete with the private sector. the private sector is having a problem hiring, but if you are a municipal entity, how do you compete with private companies offering gigantic bonuses? taylor: when nick talks about the goldman sachs banker presentation that was floating around on the ripple effects of sign-on bonuses but look at this rate when you think about the government actor, which is the turquoise line, relative to private payrolls which is the white line from the disparity there, when you think about a recovery, who is creating jobs, who is able to bring people

back, what is interesting is that city and state budgets look pretty good given all the financing and recovery relief they received from the government. is this a supply problem? let's do this with bloomberg's katia, who recently wrote about this issue. what are you hearing about some issues city and state album and start having bringing employees back to work? that city and state governments are having bringing employees back to work? katia: you are looking at how hard a hiring environment it is in the u.s., and it is even harder for cities and states at a local level looking for people right now. because they cannot compete on wages they also can't compete on all these other benefits we are hearing about, working from home, coming into the office a couple days a week, if you are applying for a job as a life -- as a lifeguard or for your local fire department, you really can't do that. we are finding a lot of city

administrators, mayors, are desperate. it came to a head this summer because we had this record number of job openings in the u.s., we had a lot of private sector, we had private sectors raising wages, whether wall street or walmart, they are all raising wages and bonuses. you get into places like albuquerque, new mexico, where one in 10 jobs are empty -- that is anyone from the local town where they have an increase in dogs, to the police department department, the fire department, and also waste services, all really important to keeping the city going. romaine: not only keeping the city going, but i have a great chart that shows the contribution of state and local government expenditures to national gdp. it was significant to pre-pandemic -- significant pre-pandemic and has dropped to basically nothing in the pandemic. there are broader issues here.

is the federal government aware of this and doing anything to work with municipalities to address the job shortage? katia: yes. you mention federal spending weather for covid packages are we apart recently from the labor department and treasury department about spending money for example for unemployment and if its, to keep workers and unemployment people -- and unemployed people afloat to keep local economies going and it is your point, just how important these local sectors are to the overall economy. funding isn't everything, a lot of it has to do with demand, not just supply. you have people who would rather work at a place that will be paying them more and offering them more flexibility than work for the local government. and some people are still dealing with childcare issues and all the other issues we have discussed the pandemic, people rethinking what they want to do, they could be moving, president

biden even talked about that, how people are changing what they want to do with their lives. so, it is both a supply issue and demand for cities and states. sonali: flexibility demands, are there certain jobs you find that the state and local level that are more attractive than others because they do offer the lifestyle of a more modern workforce? katia: yeah. we looked at a couple cities and states. new mexico had one of the highest differences between pre-pandemic and now in terms of jobs, and 11% drop in employees. but as for jobs in sectors that are more appealing, anything where you can work from home and anything that comes with benefits, like childcare, are much more in demand. unfortunately, for anyone who lives in baltimore for example, they are having issues with trash pickup, and a lot of illegal dumping. that is a very real reality --

they don't have enough drivers for the trash trucks, they don't have enough people to pick up the trash. so those are on-the-ground issues. romaine: exactly. not just about bonuses and pay. katia dmitrieva, our reporter giving us a peek into the job support. coming up, we look into the report in regards to health care jobs. a loss of about 5000 jobs in that sector. talk next with janet elkin ceo of health care staffing company icon medical network. this is bloomberg. ♪

♪ ♪ taylor: we are focusing on the u.s. jobs were orton returned to the health care sector. they saw a loss of 5000 jobs in august numbers. romaine, this is incredible because we are in the middle of

a pandemic at this has been one of the most interesting sectors. romaine: really interesting. let's get inside from janet elkin, ceo of health care set often -- health care stepan company icon medical network. one thing i thought was interesting about the health care sector was that prior to the pandemic, it seemed this is one of the fastest-growing sectors in terms of new job growth, opportunities and wages. i am wondering come up with the breakdown because of the pandemic, is there any sense that we return to pre-pandemic levels? janet: the problem is not opportunities. jobs are there. we are seeing sign-up otis is i have never seen in my career -- sign-up bonuses i have never seen in my career. it is a combination of not attracting enough people and health care workers are exiting health care in droves major concern. romaine: are they exiting because of pay, working conditions? janet: a lot of things.

in many cases, turnout. in the early days of the pandemic, there was a lot of good feeling toward health care workers at a feeling there was nothing we can do, we have to help folks. with a vaccine available now, and so many choosing not to take it, it is very, very discouraging. and there is a lot of anger. and just exhaustion. however, you are right, when it comes to some sectors like nursing homes and areas, the pay is not enough to attract them -- and other areas, the pay is not enough to attract them. taylor: when you talk about burnout in the financial industry, we have been talking about working 16 hour days, at least now you will get extra money, but it doesn't solve the underlying problem that you are burnt out, you're just getting more money. how do you fix that underlying burnout if money isn't enough to keep you in the industry? janet: it is an issue, especially when you consider

younger people going into health care want more of the work-life balance. so that is an issue, no matter how much you pay them, how much you over time -- how much overtime to give them. they just don't want to work all those hours. combining it with more flexibility is not going to happen overnight. it is go to take a while. but we need to be looking at health care in a different light. taylor: it is a cyclical issue -- sonali: it is a cycle glacier because if you don't have enough nurses come you can't give -- enough nurses, you can't give nurses time off and we have more people sick with covid right now. what kind of optimism can you provide for the sector? janet: people choose health care as a career because they want to heal. it is a passion, omission, often. -- passion, a mission, often. once we get to a better place in

the pandemic, we will see that happen. people are attracted to health care because it is growing and so many ways but in the meantime, you have to make choices. most of what we do is temporary staffing and nursing, i think 8% of physicians who weren't planning on retiring on our retiring this year. we had a shortage to begin with. romaine: what is the pipeline looking like at the younger level, folks in college and med school? janet: given how many years it takes to get a degree, that is a concern. we can't just say that two years after college, you are ready to go. but i think being able to give more flexibility is going to make a difference. that is where we are shining. we are doing things like temporary physicians because we have got to do something to still want to continue to get up

and go to work. taylor: janet's, if you will allow me to push back on that, some would argue you cannot ask for flexibility if you are going to med school. if you want to be a doctor, that is not what you signed up for. what do you say to that? janet: well, if we want to have the care, we have to figure it out. because right now, when i look at certain areas, emergency rooms which you can imagine are overloaded again, psychiatry because of the isolation people have felt over the last year, we have got find another way to give them some kind of flexibility. we need it. and dentistry too. we work with dental clinics. people are going to their dentists again. there aren't enough. romaine: thank you, janet elkin, ceo of icon health care

staffing. we had a conversation a couple weeks ago about investment bankers and the stresses are putting on junior analyst and the idea that if you want to be in this profession, these are who -- hoops you have to jump through. is that the case? taylor: how do you balance those hoops if you know what you signed up for versus what janet elkin said, that we don't then have enough doctors. how do you change the hoops? a good point and when we have to discuss. sonali: 10 how do you incentivize people to go into places like intensive care or critical units that are going to be more stressful than others, but need people. romaine: this is an important issue. this is a great show. i want to alert our viewers -- resident biden went to louisiana to visit the damage that we have seen from hurricane item. you can go to tv for the

live remarks as he sees what the folks affected need to get back on their feet. that does it for "what'd you miss?" sonali: "bloomberg technology" is next. taylor: have a great weekend and watch romaine on wall street week. this is bloomberg. ♪

♪ >> from the heart of where innovation, money and power collide, and silicon valley and beyond, this is "bloomberg technology," with emily chang. ♪ emily: i'm emily chang in san francisco and this is "bloomberg technology." beijing taking steps to take control of didi, the world' is gg