21 Aug August 21, 2020
Week in Review
Employment
Initial jobless claims totaled 1.106 million for the week ending August 15. Continuing claims fell 462,000 for the week ending August 8.
Our Take: Initial claims moved slightly higher and 14.844 million people are still receiving unemployment compensation. Recent rapid gains in employment have slowed and the employment recovery still has a long way to go. The speed of the recovery remains uncertain, as it is dependent in large part on reactions to the virus. Temporary job losses are more likely to become permanent the longer COVID-19 continues to hamper the economy.
Municipals
Illinois Governor J.B. Pritzker continues to push the graduated income tax proposal forward, including spending more than $56 million of his own money on a new advertising campaign. In order to change the current flat tax to a progressive structure, Illinois voters must approve the amendment on the November ballot with a 60% majority.
Our Take: Pritzker, faced with a budget deficit, is hopeful that the proposal will pass, leading to an increase in tax revenue. However, in the midst of the pandemic critics have voiced opposition to any tax increases.
All expressions of opinions are subject to change without notice in reaction to shifting market conditions. All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities and should not be relied on as financial advice.