Biden says Republican governors are undermining COVID safety response

By Nandita Bose

(Reuters) -U.S. President Joe Biden on Thursday directed his ire at the governors of Florida and Texas, accusing the Republican leaders of “doing everything they can to undermine the life-saving requirements” he proposed to counter the spread of COVID-19.

Some Republican governors, including Greg Abbott of Texas and Ron DeSantis of Florida, have vowed to fight the vaccine mandate for big companies that Biden rolled out last week in the face of surging U.S. COVID-19 hospitalizations and deaths, mostly among the unvaccinated.

Mississippi Governor Tate Reeves earlier this week likened Biden’s mandate to tyranny.

“I propose a requirement for COVID vaccines, and the governor of that state calls it a ‘tyrannical-type move?'” said Biden, noting that the pandemic has killed over 660,000 people in the United States.

“This is the worst type of politics…and I refuse to give in to it,” Biden said, adding that the policies rolled out by the White House are “what the science tells us to do.”

Some Republican-led states and a sizable minority of Americans have defied vaccine recommendations from health officials, arguing that mandates infringe on their personal freedoms.

With just 63% of the eligible U.S. population having received at least one vaccine dose, the U.S. vaccination rate now lags most developed economies.

Biden’s vaccine policy is expected to face a string of legal challenges from Republicans, including Arizona Attorney General Mark Brnovich, who became the first to file a lawsuit against it on Tuesday.

DeSantis has threatened fines for cities and counties that require employees get vaccinated against COVID-19, saying they violate Florida state law.

(Reporting by Nandita Bose; Writing by Tyler Clifford; Editing by Heather Timmons and Bill Berkrot)

As COVID surges, more Florida school districts revolt against governor’s mask ban

By Saundra Amrhein and James Oliphant

TAVARES, Fla. (Reuters) – In a scene replayed across the United States, angry parents and activists streamed into a meeting of the Florida’s Lake County school board on Thursday where it considered whether to mandate mask-wearing for students and staff due to COVID.

Some opponents of the mask proposal brandished signs that read “Let Our Children Breathe.” Even with Florida seeing a record number of coronavirus cases, one attendee called the pandemic “overblown.” Another was escorted out by deputies after yelling at board members.

The proposal would require staff and students to wear masks for 14 days at schools with COVID positivity rates at or above 5%. But Florida’s Republican governor, Ron DeSantis, effectively banned similar mandates in July.

Since DeSantis’ order, more than a dozen Florida counties have rebelled and voted to require masks to protect students and teachers as the Delta variant sweeps across the state. This week, the state’s Department of Education sanctioned two counties that passed school mask requirements.

The battle between DeSantis and the state’s school systems echoes larger fights across the country. Other Republican-run states such as Arizona and Texas have also banned mask mandates in schools even as COVID cases have soared in their states, as parents and voters are sharply divided over safety measures and personal freedoms.

The pushback in Florida against the Republican governor initially was led by large urban school districts run by Democrats. But this week saw more conservative counties that backed Republican Donald Trump in the 2020 presidential election also defying DeSantis and instituting their own mandates.

Earlier this week, populous Brevard County along Florida’s east coast, which went for Trump over President Joe Biden by more than 16 percentage points in November, narrowly voted to approve a 30-day school mask mandate.

A day later, Hernando County, which supported Trump over Biden by almost 30 points, also passed a mandate, but one that allows parents to opt out.

In Lake County near Orlando, which also strongly backed Trump, a school official said on Thursday that more than 1,000 students of the 36,000 in the district had tested positive for the virus.

The board listened to more than three hours of public comment on the mask proposal then postponed a decision. Some 280 people spoke or sent emails on the issue, and two-thirds of them supported the idea, the Orlando Sentinel reported.

Still, proponents of a mask mandate were booed and heckled by the crowd in attendance.

“This topic has completely polarized communities,” said Andrea Messina, president of the Florida School Boards Association.

‘ABSOLUTE CRISIS’

While the conflict centers on whether state or local governments are best equipped to make decisions on health and safety, it also has become a political challenge for DeSantis, whose state has once again become a COVID-19 hotbed.

After being widely praised last year when cases declined and the state’s economy seemed revived, DeSantis has faced renewed criticism for his opposition to masks and employer vaccine mandates. Florida on Aug. 26 saw a single-day record number of new cases of the virus – almost 28,000 – since the pandemic began.

A spokesperson for DeSantis, Christina Pushaw, defended the ban on school mandates, saying the governor is “protecting the rights of families and children from all levels of government overreach.”

At the Brevard County meeting on Monday, Misty Belford, the chair of the school board who a month earlier had opposed a mask mandate, switched her vote and gave proponents a 3-2 majority.

Belford changed her mind, she told Reuters, after watching the district’s caseload spike, including a 49% increase in student cases from one week to the next. One school was closed for two days after most of its students were quarantined.

“We are at an absolute crisis point,” Belford said.

But board member Katye Campbell, who voted against the mandate, said she worries about negative effects on students from requiring masks, such as asthma flare-ups, suicidal ideation and panic attacks.

“There is nothing easy about this decision because our community is so divided,” Campbell said.

Belford said she was relying on a decision from a Florida court last week that declared the DeSantis ban illegal. DeSantis on Thursday appealed the ruling. Earlier this week, the Florida Board of Education said it would penalize two counties that voted for mask mandates without providing a parental opt-out, Alachua and Broward, by withholding funds from the districts for the board members’ salaries.

Leanetta McNealy, chair of the Alachua County school board, said her board voted for the mask mandate last month based on scientific evidence that it would help mitigate the spread of the highly contagious Delta variant.

“I’d rather have a decrease in my compensation than have a death under my watch,” she said.

(Reporting by Saundra Amrhein in Tavares, Florida and James Oliphant in Washington; Editing by Soyoung Kim and Cynthia Osterman)

New kidney problems linked to ‘long COVID;’ loss of smell may be followed by other smell distortions

By Nancy Lapid

(Reuters) – The following is a summary of some recent studies on COVID-19. They include research that warrants further study to corroborate the findings and that have yet to be certified by peer review.

‘Long COVID’ tied to higher kidney risks

COVID-19 symptoms that persist long after infection, known as “long COVID,” has been tied to a higher risk for new kidney problems, according to a new study. Analyzing data on more than 1.7 million U.S. veterans, including nearly 90,000 COVID-19 survivors with symptoms lasting at least 30 days, researchers found the “long haulers” were at higher risk for new kidney problems compared to people who had not been infected with the coronavirus. This was true even when survivors had not been hospitalized, although declines in kidney function were “more profound” with more severe infection, they reported on Wednesday in the Journal of the American Society of Nephrology. Roughly 5% of the Long COVID group developed at least a 30% drop in a critical measure of kidney function known as the estimated glomerular filtration rate, or eGFR. Overall, people with long COVID were 25% more likely than uninfected people to develop a 30% decline in eGFR, with higher risks in survivors of more severe disease. While kidney function often declines with age, the damage in these patients “was in excess” of what happens with normal aging, study coauthor Dr. Ziyad Al-Aly, of Washington University in St. Louis, said in a statement. “Our findings emphasize the critical importance of paying attention to kidney function and disease in caring for patients who have had COVID-19,” he said.

Loss of smell may be followed by smell distortions

Many people who lose their sense of smell due to COVID-19 eventually regain it, but some survivors later report smell distortions and unexplained smells, a new study found. Researchers analyzed survey responses from 1,468 individuals who had been diagnosed with COVID-19 between April and September 2020 and had suffered loss of smell and taste at the start of their illness. Early on, about 10% also reported smell distortions, or parosmia, and unexplained smells, known as phantosmia. At an average of six to seven months after becoming ill and first reporting loss of smell, roughly 60% of women and 48% of men had regained less than 80% of their pre-illness smell ability, and rates of smell distortions and imaginary smells had increased, the researchers reported on Tuesday on medRxiv ahead of peer review. Roughly 47% reported parosmia, saying, for example, “some things now smell like chemicals.” About 25% reported phantosmia. “Sometimes I can smell burning but no one else around me can,” one respondent reported. Persistent smell problems were seen more often in survivors with more symptoms overall, “suggesting it may be a key marker of long-COVID,” the authors said.

Vaccines induce antibodies despite cancer, immunocompromise

The mRNA COVID-19 vaccines trigger protective immune responses in most cancer patients with solid tumors and in many people taking immunosuppressive medications, two small studies suggest. In Israel, researchers found that six months after the second dose of the vaccine from Pfizer Inc and BioNTech SE, 79% of 154 patients with solid tumors had developed antibodies, as had 84% of 135 similar people without cancer, a difference that was not deemed statistically significant. Antibody levels were similar in the two groups, the researchers reported on Thursday in Cancer Discovery. Separately, U.S. researchers studied 133 adults taking immunosuppressive medications for chronic inflammatory diseases and 53 healthy volunteers. At three weeks after the second shot of an mRNA vaccine from Pfizer/BioNTech or Moderna Inc, nearly 90% of the immunosuppressed participants had developed antibodies, although many had lower responses compared to the control group, according to a report published on Tuesday in Annals of Internal Medicine.

Antibody therapy cuts hospitalization rates

People with mild-to-moderate COVID-19 who were treated with a monoclonal antibody “cocktail” had lower hospitalization rates than similar people who did not receive the treatment, researchers reported on Monday in EClinicalMedicine. They looked at nearly 1,400 such patients, roughly half of whom had received Regeneron Pharmaceutical Inc’s combination monoclonal antibody therapy. Among those who received the treatment, about 45% were older than 65, and many had high blood pressure, obesity, diabetes, lung disease and other risk factors. By four weeks after the treatment, 1.6% of them had been hospitalized, compared to 4.8% of patients not treated with the monoclonal antibodies. The study was not randomized and cannot prove the treatment caused the better outcomes. However, it “suggests that when patients who are at high risk due to a range of comorbidities contract a mild or moderate case of COVID-19, this combination of monoclonal injections gives them a chance of a non-hospitalized recovery,” study leader Dr. Raymund Razonable of the Mayo Clinic in Rochester, Minnesota in a statement.

(Reporting by Nancy Lapid; Editing by Bill Berkrot)

U.S. job growth takes giant step back as Delta variant hits restaurants

By Lucia Mutikani

WASHINGTON (Reuters) – The U.S. economy created the fewest jobs in seven months in August as hiring in the leisure and hospitality sector stalled amid a resurgence in COVID-19 infections, which weighed on demand at restaurants and hotels.

But other details of the Labor Department’s closely watched employment report on Friday were fairly strong, with the unemployment rate falling to a 17-month low of 5.2% and July job growth revised sharply higher. Wages increased a solid 0.6% and fewer people were experiencing long spells of unemployment.

This points to underlying strength in the economy even as growth appears to be slowing significantly in the third quarter because of the soaring infections, driven by the Delta variant of the coronavirus, and relentless shortages of raw materials, which are depressing automobile sales and restocking.

“It is important to keep the right perspective,” said Brian Bethune, professor of practice at Boston College. “Given the supply chain constraints and the ongoing battle to lasso COVID-19 to the ground, the economy is performing exceptionally well.”

The survey of establishments showed nonfarm payrolls increased by 235,000 jobs last month, the smallest gain since January. Data for July was revised up to show a whopping 1.053 million jobs created instead of the previously reported 943,000.

Hiring in June was also stronger than initially estimated, leaving average monthly job growth over the past three months at a strong 750,000. Employment is 5.3 million jobs below its peak in February 2020. Economists polled by Reuters had forecast nonfarm payrolls increasing by 728,000 jobs in August.

Though the Delta variant was the biggest drag, fading fiscal stimulus was probably another factor. The response rate to the survey is lower in August and the pandemic has made it harder to adjust education employment for seasonal fluctuations.

The initial August payrolls print has undershot expectations over the last several years, including in 2020. Payrolls have been subsequently revised higher in 11 of the last 12 years.

“The August payroll figures have historically been revised higher in the years since the Great Recession, sometimes significantly, and there’s a good chance this effect will occur again this time,” said David Berson, chief economist at Nationwide in Ohio.

Employment in the leisure and hospitality sector was unchanged after gains averaging 377,000 per month over the prior three months. Restaurants and bars payrolls fell 42,000 and hiring at hotels and motels decreased 34,600, offsetting a 36,000 gain in arts, entertainment and recreation jobs. Retailers shed 29,000 jobs.

Construction lost 3,000 jobs. There were gains in mining, financial services, information and professional and business services as well as transportation and warehousing.

Manufacturing added 37,000 jobs, led by a 24,100 increase in the automobile industry. Factory hiring remains constrained by input shortages, especially semiconductors, which have depressed motor vehicle production and sales.

General Motors and Ford Motor Co announced production cuts this week.

Motor vehicle sales tumbled 10.7% in August.

That, together with raw materials shortages, which are making it harder for businesses to replenish inventories, prompted economists at Goldman Sachs and JPMorgan to slash third-quarter GDP growth estimates to as low as a 3.5% annualized rate from as high as a 8.25% pace. The economy grew at a 6.6% pace in the second quarter.

Government payrolls fell by 8,000 in August as state government education lost 21,000 jobs. August is the start of the back-to-school season, but the Bureau of Labor Statistics, which compiles the employment report cautioned that “pandemic-related staffing fluctuations in public and private education have distorted the normal seasonal hiring and layoff patterns.”

Stocks on Wall Street were mixed. The dollar slipped against a basket of currencies. U.S. Treasury prices fell.

SILVER LININGS

Details of the smaller household survey from which the unemployment rate is derived were fairly upbeat.

Household employment increased by 509,000 jobs, enough to push the unemployment rate to 5.2%, the lowest since March 2020 from 5.4% in July. The jobless rates, however, continued to be understated by people misclassifying themselves as being “employed but absent from work.” Without this problem, the jobless rate would have been 5.5%.

Even so, a broader measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment, dropped to a 17-month low of 8.8% from 9.2% in July.

Though the participation rate was steady at 61.7%, about 190,000 people entered the labor force last month. Even more encouraging, the number of permanent job losers declined 443,000 to 2.5 million. The number of long-term unemployed dropped to 3.2 million from 3.4 million in the prior month.

They accounted for 37.4% of the 8.4 million officially unemployed people, down from 39.3% in July. The duration of unemployment fell to 14.7 weeks from 15.2 weeks in July.

Economists did not believe the pullback in hiring was enough for the Federal Reserve to back away from its “this year” signal for the announcement of the scaling back of its massive monthly bond buying program, given strong wage growth.

“For the Fed a taper announcement is still likely coming in either November or December,” said Michael Feroli, chief U.S. economist at JPMorgan in New York.

The 0.6% jump in average hourly earnings after a 0.4% rise in July boosted annual wage growth to 4.3% in August from 4.0% in the prior month. The increase, led by lower-paying industries, is the result of worker shortages caused by the pandemic. There were a record 10.1 million job openings at the end of June.

There is cautious optimism that the labor pool will increase because of schools reopening and government-funded benefits expiring on Monday. But the Delta variant could delay the return to the labor force by some of the unemployed in the near term.

About 41,000 women, 20 years and older, dropped out the labor force. The number of number of people saying they were unable to work because of the pandemic increased 497,000 in August, the first rise since December. There was also a slight rise in the number of people working from home.

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Andrea Ricci)

Antibody levels higher after Moderna shot; Lilly arthritis drug used with steroid cuts death risk

By Nancy Lapid

(Reuters) – The following is a summary of some recent studies on COVID-19. They include research that warrants further study to corroborate the findings and that have yet to be certified by peer review.

Antibody levels are higher after Moderna vaccine

The mRNA vaccine from Moderna Inc induces higher levels of antibodies against the coronavirus that causes COVID-19 than the similar vaccine from Pfizer Inc and partner BioNTech SE, Belgian researchers have found, although what this means for their efficacy is not clear. Soon after receiving their second shot, the 688 healthcare workers who got Moderna’s vaccine had antibody levels roughly twice as high as the 959 who received the Pfizer/BioNTech product, regardless of their ages, doctors at a Belgian medical center reported. This held true even after accounting for individual risk factors, and regardless of whether participants had previously been infected with the virus, the researchers reported on Monday in JAMA. Antibodies are just one component of the immune system’s defenses, however. The study cannot determine whether one vaccine is more effective at preventing infection or illness, or whether the antibodies induced stay longer in the blood before disappearing. Those questions, and others, require further investigation, the researchers said.

Arthritis drug adds to benefit of steroids in severe illness

Hospitalized COVID-19 patients died less often if they received Eli Lilly and Co’s rheumatoid arthritis drug baricitinib along with the other treatments their doctors had prescribed, according to a study published on Wednesday in The Lancet Respiratory Medicine. The randomized trial involved 1,525 seriously ill patients, all of whom needed extra oxygen to help with breathing. More than 90% were already receiving dexamethasone, a cheap generic steroid known to improve survival of critically ill COVID-19 patients. While baricitinib, sold under the brand name Olumiant, did not appear to keep patients from getting sicker, it did reduce their risk of dying. The 28-day and 60-day death rates were 5% lower among patients randomly assigned to receive baricitinib instead of a placebo. Baricitinib is already approved in the United States for use in hospitalized COVID-19 patients in combination with Gilead Science’s antiviral drug remdesivir. The two drugs together appear to have more benefit than remdesivir alone. In the new study, more than 80% of participants were not receiving remdesivir, suggesting that baricitinib also “has synergistic effects with other standard-of-care treatments,” including dexamethasone, researchers said.

Vaccine poses low risk for adults with high-risk allergies

Highly allergic adults can safely receive the COVID-19 vaccine from Pfizer/BioNTech, a new study suggests. Among the 8,102 patients with allergies in the Israeli study, 95% received the shots in routine settings because their risk of a severe allergic reaction to the vaccine was low, and no such reactions were reported. The remaining 429 patients, who were considered to be highly allergic, received the vaccines under careful supervision and were observed for two hours afterward. Nine had allergic reactions, including three who showed signs of potentially life-threatening anaphylaxis. All responded to treatment with epinephrine and no one had to be hospitalized, according to a report published on Tuesday in JAMA Network Open published with the study said lessons from this study of allergic reactions to the Pfizer vaccine are likely “generalizable to the Moderna” shot as well.

(Reporting by Nancy Lapid; Editing by Bill Berkrot)

U.S. manufacturing activity rises; shortages linger

By Lucia Mutikani

WASHINGTON(Reuters) – U.S. manufacturing activity unexpectedly picked up in August amid strong order growth, but a measure of factory employment dropped to a nine-month low, likely as workers remained scarce.

The survey from the Institute for Supply Management (ISM) on Wednesday continued to highlight persistent problems securing enough raw materials, a situation worsened by disruptions caused by the latest wave of COVID-19 infections, primarily in Southeast Asia, as well as ports congestion in China.

“A surprising turn of events for manufacturing activity in the U.S., but it doesn’t change the story of supply disruptions and shortages holding back stronger growth,” said Jennifer Lee, a senior economist at BMO Capital Markets in Toronto.

The ISM said its index of national factory activity inched up to 59.9 last month from a reading of 59.5 in July. A reading above 50 indicates expansion in manufacturing, which accounts for 11.9% of the U.S. economy. Economists polled by Reuters had forecast the index falling to 58.6.

Manufacturing is holding up even as spending is rotating back to services from goods because of vaccinations against COVID-19. All of the six largest manufacturing industries, including computer and electronic products, chemical products and transportation equipment reported moderate to strong growth.

Manufacturers of computer and electronic products said while a global semiconductor shortage was impacting supply lines, they had so far “been able to manage it without impacting clients.”

Chemical goods producers said they continued to “see extended lead times due to port delays and sea container tightness.” Transportation equipment makers reported that “strong sales continue, but production is limited due to supply issues with chips.”

The ISM survey’s forward-looking new orders sub-index rebounded to a reading of 66.7 last month after two straight monthly declines. Fourteen out of 18 manufacturing industries, furniture and related products, machinery and electrical equipment, appliances and components reported growth in new orders. Only nonmetallic mineral products reported a drop.

Demand is being driven by businesses desperate to replenish stocks after inventories were drawn down sharply in the first half of the year. Inventory accumulation, which is expected to be the main driver of economic growth for the rest of this year and into 2022, has been frustrated by the supply constraints.

Stocks on Wall Street were trading higher. The dollar slipped against a basket of currencies. U.S. Treasury prices were mixed.

INFLATION ABATING

Scarce inputs have boosted prices for both manufacturers and consumers. But there appears to be light at the end of the tunnel. The ISM measure of delivery performance of suppliers to manufacturing organizations eased further in August, indicating some improvement in the pace of deliveries.

The survey’s measure of prices paid by manufacturers fell to an eight-month low of 79.4 from a reading of 85.7 in July. This measure has dropped from a record 92.1 in June.

It was the latest indication that inflation has probably peaked. Data last week showed the Federal Reserve’s preferred inflation measure recorded its smallest monthly gain in five months in July.

But worker shortages persist, with ISM chair Timothy Fiore highlighting “a clear cycle of labor turnover as workers opt for more attractive job conditions.”

A measure of factory employment contracted last month and fell to its lowest level since November.

Together with the ADP National Employment Report, which showed on Wednesday that private payrolls increased by 374,000 jobs last month after rising 326,000 in July, the ISM factory index poses a downside risk to job growth in August. Economists had forecast the ADP report would show private payrolls increased by 613,000 jobs.

The ADP report is jointly developed with Moody’s Analytics and was published ahead of the Labor Department’s more comprehensive and closely watched employment report for August on Friday. But it has a dismal record predicting the private payrolls count in the department’s Bureau of Labor Statistics (BLS) employment report because of methodology differences.

According to a Reuters survey of economists, nonfarm payrolls likely increased by 728,000 jobs last month after rising 943,000 in July.

“ADP is far from consistent in predicting changes in the BLS payrolls data,” said Rubeela Farooqi, chief U.S. economist at High Frequency economics in White Plains, New York. “Overall, job growth has strengthened in recent months, even as companies continue to report labor supply shortages.”

The pandemic has upended the labor market dynamics, creating worker shortages even as 8.7 million people are officially unemployed. The were a record 10.1 million job openings at the end of June. Lack of affordable child care, fears of contracting the coronavirus, generous unemployment benefits funded by the federal government as well as pandemic-related retirements and career changes have been blamed for the disconnect.

The labor shortage is expected to ease starting in September. The government-funded unemployment benefits lapse on Sept. 6 and schools are reopening for in-person learning.

But the resurgence in new COVID-19 cases, driven by the Delta variant of the coronavirus, could cause reluctance among some people to return to the labor force.

The labor shortages led to a building up of the backlog of uncompleted work at factories in August.

(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)

U.S. childcare in short supply as burned-out workers quit, new hires hard to find

By Jonnelle Marte

(Reuters) -Rochelle Wilcox, the owner of three childcare centers in New Orleans, receives 10 to 15 phone calls nearly every day for each school from parents asking if there is space for their children.

But Wilcox has to turn them away. While her enrollment is not yet back to pre-pandemic levels, she doesn’t have the staff to take on more students.

“I have to say that we’re full,” said Wilcox, who capped the wait list for the three schools at 140 children, compared to the more typical range of 45 to 60. She estimates the schools could accept nearly 40 more children if she could hire 10 more staffers.

Childcare centers across the country are struggling to find enough qualified educators to be fully staffed for back-to-school season, an obstacle that has some schools reducing planned enrollment and cutting back hours. Owners of childcare centers say more workers are quitting and fewer people than usual are applying for open positions.

The staffing crunch is further limiting childcare options for parents eager to get back to work. It also creates more hurdles for working mothers, who were disproportionately pushed out of the labor market when schools went virtual and childcare centers closed because of the pandemic.

Without reliable childcare, it will become more difficult for those parents to return to steady work schedules, economists say, potentially slowing a labor market recovery that many had hoped would get a jolt as schools reopened this fall and which becomes even more critical as enhanced jobless benefits expire in September.

Research released on Wednesday by the Federal Reserve Bank of Atlanta found that women with children under age 6 made up 10% of the workforce before the pandemic but accounted for 22% of the jobs lost during the crisis. The ability to find quality childcare is “likely to be a determining factor for employment” for women with young children, Atlanta Fed researcher M. Melinda Pitts wrote in the report.

Four out of five early childhood educators working at childcare centers said they were understaffed in late June and early July, according to a survey by the National Association for the Education of Young Children. More than one in three respondents said they were thinking about leaving or shutting down their centers this year.

Recruiting childcare workers has always been difficult because wages are typically low – workers earn a median of $12 an hour according to the Labor Department – and the work is demanding. But those challenges were exacerbated by the pandemic, which put workers’ health at risk and, with many quitting, created greater responsibilities for those who remained on the job.

The renewed focus on the workforce is leading to a national conversation about early childhood educators and what needs to change to provide them with more opportunities and reduce turnover.

“I think what we’re going through right now is a revaluing of care work and understanding that care work is the work that makes all other work possible,” said Mara Bolis, associate director of women’s economic rights for Oxfam America.

BURNING OUT

Employment of child daycare workers plunged by 36% at the start of the pandemic after many centers shut down, greater than the roughly 15% drop in employment seen in the U.S. labor market overall, according to Labor Department data. Childcare employment was still down 11% from pre-pandemic levels as of July, compared to a 4% shortfall for the labor market overall.

Some workers leaving the industry now say they are worried about the health risks or are burning out after being asked to work longer hours with less support. Some people are moving into more lucrative roles as nannies, which came into higher demand during the pandemic with daycare centers shuttering and as more families opted to keep their children at home.

Amanda Chugg worked through the early part of the pandemic at a childcare center based in a hospital campus in Portland, Oregon. But she left in May of 2020 because too many of her colleagues were showing up to work sick and she was concerned about exposing her roommate, who is immunocompromised, to COVID-19.

“Having people coming to work sick is not uncommon in childcare,” said Chugg, 26, who now works as a nanny taking care of two children, ages four and six. “But with the onset of COVID it got to a place where it was untenable for me.”

Jordan Potts, 21, realized it was time for a change after being asked to work multiple 12-hour shifts because the center she worked at in north Texas was short-staffed. Many of the teachers hired to help would leave after a week or two.

“It kind of clicked, the burnout,” said Potts, who quit in August after about three years in the industry. Instead of caring for a room of about 10 one-year old’s, Potts is now working as a full-time nanny caring for a five-month old baby. While her pay is about the same, her responsibilities as a nanny are more manageable, said Potts, who will start college in January and wants to be an elementary school teacher.

SEEKING SOLUTIONS

Owners of childcare centers say they want to boost wages to retain more workers. But they argue they are limited in terms of how much more they can offer before they have to start raising tuition – putting more pressure on families already struggling to afford childcare.

That tension is not new, but some childcare center owners feel they are competing more intensely with retailers, restaurants and other businesses that are better able to increase pay or sweeten benefits to attract more workers during the pandemic.

Wilcox, the owner of the childcare centers in New Orleans, increased hourly wages for all of her staff this spring, going from a range of $10 to $13 per hour to a range of $12 to $16. But she still hasn’t been able to fill all of her openings.

In addition to better wages, early childhood educators say they need more opportunity for growth within the field, support from staff and broader access to health insurance, sick time and other benefits.

Megan Ahern initially envisioned she would spend her evenings coming up with creative lesson plans when she started teaching pre-Kindergarten full-time in Eugene, Oregon, in September of 2020.

But after struggling to afford groceries on her teacher paycheck alone, the 25-year-old started delivering food through Uber Eats after school. She worked close to 12 hours a day between the two jobs.

Ahern, who quit the school at the end of August, said she didn’t have the resources needed for her classroom, which included some children with special needs. Some of the children would hit, bite or pee on her. She was so overwhelmed she often found herself shedding tears during her 30-minute lunch breaks.

Ahern’s pay was increased to $17 an hour from $13 an hour in early August, but it wasn’t enough to change her mind. “Ideally I’ll be able to come back to working with kids at some point,” said Ahern, who plans to keep delivering food until she finds another job. “But I just need a break.”

(Reporting by Jonnelle Marte; Editing by Dan Burns and Andrea Ricci)

Pennsylvania governor issues mask mandate for schools, child care facilities

By Brendan O’Brien

(Reuters) -Pennsylvania Governor Tom Wolf on Tuesday issued a mask mandate for all K-12 school and child care facilities to protect against the spread of COVID-19, three weeks after the Democrat said he would leave the decision to individual districts.

The order, which goes into effect Sept. 7, comes amid a surge in COVID-19 cases due to the highly-contagious Delta variant of the virus.

Since July, Pennsylvania’s COVID-19 case load has increased from less than 300 a day to more than 3,000 a day, according to the state’s health department.

“With case counts increasing, the situation has reached the point that we need to take this action to protect our children, teachers and staff. The science is clear,” the state’s acting Health Secretary Alison Beam said in a statement.

The decision comes as millions of public education students head back to schools across the United States. School districts, state education agencies and governors across the nation are grappling with masking and vaccination requirements.

In South Carolina, for example, the state’s supreme court heard arguments on Tuesday in two cases involving mask mandates in city of Columbia schools.

The order in Pennsylvania requires students, teachers and staff to wear masks in all public and private K-12 schools. The order also applies to child care providers and early learning programs. The order does not apply to school sports or outdoor activities.

In early August, Wolf said he intended to leave the decision to require masks in schools up to individual districts.

“Unfortunately, an aggressive nationwide campaign is spreading misinformation about mask-wearing and pressuring and intimidating school districts to reject mask policies that will keep kids safe and in school,” he said.

(Reporting by Brendan O’Brien in Chicago; Editing by Chris Reese and Bill Berkrot)

U.S. consumer confidence falls to 6-month low; house prices post record gains

By Lucia Mutikani

WASHINGTON (Reuters) -U.S. consumer confidence fell to a six-month low in August as concerns about soaring COVID-19 infections and higher inflation dampened the outlook for the economy.

The survey from the Conference Board on Tuesday also showed consumers were less upbeat about the labor market. They were less inclined to buy a home and big-ticket items like motor vehicles and major household appliances over the next six months, supporting the view that consumer spending will cool in the third quarter after two straight quarters of double-digit growth.

Still, more consumers planned to go on vacation, indicating a rotation in spending from goods to services was underway as economic activity continues to normalize following the upheaval caused by the coronavirus pandemic. Increased spending on services, which account for the bulk of economic activity, should keep a floor under consumer spending.

“While the resurgence of COVID-19 and inflation concerns have dampened confidence, it is too soon to conclude this decline will result in consumers significantly curtailing their spending in the months ahead,” said Lynn Franco, senior director of economic indicators at the Conference Board in Washington.

It mirrored the University of Michigan’s survey of consumers, which showed sentiment tumbling in August because of rising prices for goods like food and gasoline, as well as the resurgence in COVID-19 cases that has been driven by the Delta variant of the coronavirus.

The Conference Board’s so-called labor market differential, derived from data on respondents’ views on whether jobs are plentiful or hard to get, slipped to 42.8 this month from 44.1 in July. This measure closely correlates to the unemployment rate in the Labor Department’s closely watched employment report.

Fewer households intended to buy long-lasting manufactured goods such as motor vehicles and household appliances like washing machines and clothes dryers, the survey showed. But the share of consumers planning to go on vacations rose, with most expecting to travel domestically and many intending to fly to their destinations. That should help to offset the drag from reduced spending on goods.

Despite the anticipated slowdown, the foundation for consumer spending remains strong, with households sitting on at least $2.5 trillion in excess savings accumulated during the pandemic. Gross domestic product growth estimates for the third quarter are around a 5% annualized rate. The economy grew at a 6.6% pace in the second quarter.

Stocks on Wall Street were trading mostly lower after recent strong gains. The dollar was largely flat against a basket of currencies. U.S. Treasury prices were lower.

HOME PRICES JUMP

The Conference Board survey also showed less enthusiasm among consumers for home purchases over the next six months amid higher house prices, which are sidelining some first-time buyers from the market.

Demand for housing soared early in the pandemic as Americans sought more spacious accommodations for home offices and home schooling, but supply severely lagged, fueling house price growth. COVID-19 vaccinations have allowed some employers to recall workers to offices. Schools and universities have reopened for in-person learning.

A separate report on Tuesday showed the S&P CoreLogic Case-Shiller national home price index jumped a record 18.6% in June from a year ago after rising 16.8% in May. Economists, however, believe that house price inflation has peaked, with homes becoming less affordable especially for first-time buyers.

“Some early data suggests that the buyer frenzy experienced this spring is tapering, though many buyers still remain in the market,” said Selma Hepp, deputy chief economist at CoreLogic. “Nevertheless, less competition and more for-sale homes suggest we may be seeing the peak of home price acceleration. Going forward, home price growth may ease off but stay in the double digits through year-end.”

A separate report from the Federal Housing Finance Agency (FHFA) showed its house price index rose a record 18.8% in the 12 months through June. House prices surged 17.4% in the second quarter compared to the same period in 2020. FHFA believes house prices peaked in June.

The FHFA index is calculated by using purchase prices of houses financed with mortgages sold to or guaranteed by mortgage finance companies Fannie Mae and Freddie Mac.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

More contagious Delta variant makes people sicker; oral drug shows promise in treating COVID-19 pneumonia

By Nancy Lapid

(Reuters) – The following is a summary of some recent studies on COVID-19. They include research that warrants further study to corroborate the findings and that have yet to be certified by peer review.

Delta variant makes people sicker

The Delta variant of the coronavirus is known to be more easily transmissible than earlier versions, and now a large UK study suggests it also makes people sicker. Researchers analyzed data on 43,338 patients infected with either the Alpha or the Delta variant. Overall, roughly three quarters were unvaccinated, and half were under age 31. After accounting for patients’ underlying risk factors, researchers found that unvaccinated patients were 132% more likely to be hospitalized if they were infected with Delta than with Alpha. Vaccinated patients may also be more likely to require hospitalization with a Delta infection, but data for those patients was less clear, according to a report published on Friday in The Lancet Infectious Diseases. The results “suggest that outbreaks of the Delta variant in unvaccinated populations might lead to a greater burden on healthcare services than the Alpha variant,” the researchers concluded.

Oral drug shows promise against COVID-19 pneumonia

Severely ill patients with COVID-19 pneumonia who received the experimental oral drug opaganib developed by RedHill Biopharma required less extra oxygen and were able to leave the hospital sooner than patients receiving a placebo in a small randomized trial, researchers reported on Sunday on medRxiv ahead of peer review. Within 14 days after enrolling in the study, 50.0% of patients taking opaganib no longer needed oxygen, compared to 22.2% of patients in the placebo group. In addition, 86.4% of opaganib-treated patients had been discharged, versus 55.6% in the placebo group. On Thursday, RedHill announced that opaganib strongly inhibits the Delta variant of the coronavirus in test tube experiments. The drug is believed to exert its antiviral effect by inhibiting sphingosine kinase-2 (SK2), a key enzyme in cells that may be recruited by the virus to support its replication, the company said. Based on the initial 42-patient trial conducted last year, RedHill Biopharma launched a much larger randomized trial in patients hospitalized with severe COVID-19 pneumonia. The last of the 475 patients in that late-stage study has now completed treatment and some of the data should be available soon, the company said last week.

Seizure in children may signal COVID-19

Seizures may be the only symptom of COVID-19 in some children, a new report cautions. Children tend to get sick from COVID-19 far less often than adults, and their symptoms are usually not severe, mainly consisting of fever and mild respiratory issues, although more have become ill with emergence of the Delta variant. Among 175 children who came to an Israeli emergency room and were diagnosed with COVID-19, 11 were brought to the hospital because of seizures, researchers reported on Saturday in the medical journal Seizure. Only seven had previously been diagnosed with a neurological disorder, and only six had fever. All 11 made full recoveries. While seizures have not been a frequently reported problem in adults with COVID-19, they “may be the main manifestation of acute COVID-19 in children,” even without fever and without a history of epilepsy, the study authors said. In some hospitals, they point out, only children with flu-like symptoms or close contact with a confirmed COVID-19 patient get tested for the coronavirus. Medical personnel should be aware that children with seizures should be tested, too, they said.

(Reporting by Nancy Lapid; Editing by Bill Berkrot)