The 45,000 striking Verizon workers agreed to return to their jobs earlier this week while a contract is ironed out, but the time away from their posts could have far-reaching effects on the economy. Because the workers were off the job the week the Labor Department surveyed employers, they won’t count among the ranks of the employed for the August jobs report.
According to CNNMoney, a sour jobs report — including low payroll numbers — could nudge the economy closer to another recession.
The effects of the strike on the jobs report could be mitigated by the as-yet unspecified number of replacement workers Verizon brought on the job during the work stoppage. The upshot of this roller coaster is the economy could get a shot in the arm in the September report, to be released Oct. 7, in which the striking workers will be added to Verizon’s job rolls and could provide rosier results.
Verizon strike to hit monthly jobs reading [CNNMoney]