Economy

The US added far fewer jobs than previously reported

At least no one is surprised the federal government inflated job statistics. On Thursday, the US government lowered its projection for the amount of new jobs created annually by 818,000, showing growth in the labor market is much weaker than previously thought.

A big mistake

The revised estimation from the Labor Department indicates a 28% decrease in jobs added from April 2023 to March 2024. The new figure was listed at 2.1 million, a substantial change from the 2.9 million previously reported.

While yearly revisions from the Labor Department are common, they typically hang around 200,000 jobs added or subtracted. However:

• This years revision is the largest in the last decade, with the last biggest being in 2009.

• While almost all industries saw drops, professional, hospitality, and retail services accounted for over half of the discrepancy.

• The figure pans out to nearly 70,000 less jobs each month, according to the Bureau of Labor Statistics’ preliminary benchmark revision.

The new figure tells us job growth cooled sooner than we thought, and many see the news further strengthening the case for the Fed to cut interest rates next month.

People are feeling it: The largest number of American workers ever recorded—4.4%—said in a July survey that they anticipate losing their current jobs within the next four months.

Business

TopGolf needs to work on its swing

The go-to place to work on your swing (or to use as an excuse to get three pitchers of beer) may need to take its own advice. Following the company's alarming earnings report a few weeks ago, large debt, and slowing sales, investment firm Raymond James downgraded Topgolf's rating to "underperform," which sent its shares plunging to a nine-month low last week.

TopGolf reported meager sales in Q2, with same-venue sales down 8% from a year ago. The report prompted a selloff earlier this month, dropping the stock 12.7%.

Trying to save par

Investors were urged by Raymond James analyst Joseph Altobello to sell TopGolf's shares because the company hasn't been able to keep sales moving or customers swinging.

• Since the golf club giant Calloway bought TopGolf in 2020, the company’s shares have dived over 40%.

  • Altobello called the four years since the merger the “greatest period in the history of the sport/industry,” further pushing investors away.

While customer spending isn’t a problem (spending per visit has increased), TopGolf just can’t get enough people in the door. Altobello also said the company has tried a number of things to try and increase traffic, yet “none of this seems to have worked.”

Bogie after bogie: TopGolf can’t really afford to take any more creative liberties as the $2.4 billion in debt it has racked up is holding it back, especially from potential buyers in the market like Dave and Busters.

Dating apps just can’t keep up

At least the profit numbers didn’t lie like your best friends height on Tinder. As dating app users get increasingly tired of swiping for love (among other things), dating apps almost universally reported a downturn in sales.

Break up

The revenue reports aren’t looking so good as people actually look to find connections in real life:

• Bumble recently fell short of market predictions with meager Q4 results, the company's stock plunged 30% and let go nearly a third of its employees as a result.

  • The two companies that dominate the dating market, Match Group (which owns Tinder) and Bumble, have seen a decline in market value of about $40 billion since 2021.

• Tinder’s percentage of paying users dropped 9% year over year.

  • Match Group as a whole saw its profits fall 4%.

According to a Pew Research Center survey, nearly half of all online daters and a large majority of women users have reported having an overall unfavorable experience using dating apps.

Pay up: Tinder launched a $500 monthly subscription and Hinge launched a $600 annual membership to try and combat the decline in sales.

Unique links: Some people have even been trying to find love through non-dating apps like Strava, a workout tracker, or Duolingo, a language learning service. Whatever works I suppose.

Grab Bag

Home DIYing has taken a backseat

Riding the wave of TopGolf, home improvement companies are reporting lackluster earnings. As high interest rates and inflation continue to shakedown wallets, do-it-yourself projects are becoming all the more rare, and home improvement companies are getting the short end of the stick.

Lowe’s is the most recent of them to feel the pain:

• The company is projecting a greater decline in same-store revenue for the year, as much as 4%, which is much more than expected.

• It’s same-store sales dropped 5.1% in the most recent quarter.

It’s not just them: Rather than expecting sales to decline by 1% this year, Home Depot has informed investors that they may fall by as much as 4%.

Wrong time, wrong place

Home Depot and Lowe's both blame the slowdown in sales on consumers holding off on taking out a loan for expensive projects like remodeling their current house's kitchen or for a new home until interest rates drop.

Analysts are saying that people will be more willing to spend on home improvement once interest rates drop, which is looking increasingly likely after the botched jobs report.

Get the hint: Other retailers like Walmart and Target have been catering to the bargain hunters and had skyrocketing sales this past quarter because of it. Home Depot and Lowe’s may want to take suit, especially because of the job market downturn and bitting inflation.

Are noncompetes disappearing?

If you’re planning on starting a competitor to your current place of employment… think again. The FTC's ban on noncompete clauses, which was set to begin on September 4, was halted by a federal judge in Texas.

The FTC exceeded its jurisdiction when it voted to prohibit the majority of contracts that prevent workers from leaving their current employers or launching rival businesses, according to Judge Ada Brown's ruling on Tuesday.

Why does this matter?

Over 30 million employees have signed noncompete agreements, so it’s safe to say a lot of people would be affected. However, there are two sides to the argument:

• Noncompetes would lead to the creation of thousands of jobs along with wage increases, according to the FTC.

• Noncompete agreements, according to some employers and business associations (like the tax firm that started the case against the ban), are essential to safeguarding a company's intellectual property and training expenditures.

It’s far from over: While both sides have their say, it’s possible Congress may intervene in the future, as politicians on both sides have lobbied for noncompetes. The FTC has also said its considering an appeal.

Fast Facts

Moving Meth: Two tons of meth disguised as watermelons were found by authorities at the US-Mexico border. The smugglers used colored tape to wrap them and threw the drugmelons in with real ones to try and evade detection.

Little Labor: As Shein gears up for its IPO, the Chinese bargain seller said it found two cases of child labor in its supply chain last year.

Diamond Discovery: The second-largest diamond ever was found in Botswana this week. The gem is an astounding 2,492 carats, making it the biggest diamond found in 119 years, and could be worth over $100 million.

Insta Integration: Instagram is testing making the images on profile pages vertical rectangles instead of squares, and also adding an option for users to put their favorite song in their bio.

Sacred Scrolling: According to a new study from the University of Toronto, skipping through videos actually makes you more bored than when you watch them in their entirety.