Advice from Gloria Steinem, Dolly Parton and Wendell Berry, plus a surprising August jobs update.
The end of summer is upon us, and with it comes a tinge of loss. It feels especially so when combined with the loss of beloved treasures of our history and culture. While these individuals were not without their controversies in their lifetimes, they were all visionaries in their own ways. In their art and activism, they offered profound advice to share before this long weekend marking the transition from summer to the race to year-end.
Gloria Steinem, the icon of American feminism, died at 92 years old on Sept. 2. Her contributions in our cultural lexicon are too many to name but perhaps her biggest legacy was her hope for a different or better tomorrow for women: she once said “Without leaps of imagination or dreaming, we lose the excitement of possibilities. Dreaming, after all, is a form of planning.” When was the last time you shared your dreams?
Equally sad was the news that cherished “Queen of Country” singer-songwriter and actor Dolly Parton passed away at 80 years old. Her entertainment career was prolific, but she was equally known for her generosity and philanthropy—particularly to those in her home state of Tennessee. One of her best pieces of advice was, “Don’t get so busy making a living that you forget to make a life.” Have you considered the difference between making a life versus making a living? How can we help you plan as you accumulate and use those resources to fulfill your life goals?
American poet, essayist and farmer Wendell Berry also passed away at 92 years old this week. In This Day: Collected & New Sabbath Poems, he wrote, “We live the given life, and not the planned.” Are you and your family ready if your health or well-being were to change?
It felt important to share those thoughts, as the heart and soul of our work as a wealth management firm is about planning, not just investments. And as much as economic data and market conditions matter, nothing matters more than you and your life well-lived.
Now, turning to the news of the day, nonfarm payrolls jumped by 162,000 in August, well above economists’ estimate for a gain of 95,000 and the consensus forecast for an increase of 55,000. July’s reported decline in payrolls of 23,000 was revised to show an increase of 21,000, and job growth for June was revised higher as well. The three-month moving average of job growth is now 71,000, up from 38,000 in July.
Job growth in August got a boost from a 40,000-payroll increase in employment in state and local government, a payback for the large decline seen in prior months. Employment in manufacturing turned a corner, with another decent gain in August. Meanwhile, job losses in information and financial activities may be AI-related, while job growth in health care fell short of expectations for another month.
Wage growth slowed from 3.2% to 3.1%. With productivity growth north of 2%, the Federal Reserve can be reassured that the labor market is not a source of inflationary pressure.
The unemployment rate rose 0.05% (on an unrounded basis) in August to 4.14%. The good news is that the labor force and household employment rose, while the overall labor force participation rate rose 0.2% to 61.6%. Less encouraging is that the prime-age participation rate (people ages 25 to 54) was flat and has yet to recover from a sharp drop in June.
Markets reacted with some anxiety around this stronger-than-expected employment report, fearing it may put pressure on the Fed to act to raise interest rates. The feeling is that rate-hikes would not be welcome in an economy facing large challenges like AI disruption, accumulated inflation pressure, and heightened geopolitical risks.
But there still is broad confidence that the challenges we face will not create a recession, though we do need leadership and the grit to address them. It would seem investors and citizens are feeling that urgency and are no longer content to kick the can down the road. Perhaps that is why we all mourn the loss of national treasures like Dolly, Gloria and Wendell more in these times than in the past, because we yearn for their encouragement, example and wisdom to give us strength for what lies ahead.
RWA wishes you and your family a relaxing, safe and hopeful long Labor Day weekend, and thanks you for your trust.
Written by a human.