Prism Group's Daily Summary
JOB GROWTH IN U.S. SMALL BUSINESSES CONTINUES PACE SEEN IN LAST HALF OF 2024...
U.S. small businesses with fewer than 50 employees continued their sluggish hiring pace in January, according to the latest Paychex Small Business Employment Watch, with job growth remaining below 100 for the seventh consecutive month. At the same time, hourly wage gains slowed to 2.87%, the first time since 2021 that January earnings growth dipped below three percent. The data underscores persistent challenges for small businesses navigating a cooling labor market, rising costs, and economic uncertainty. The official jobs numbers are scheduled to be published by the Bureau of Labor Statistics this Friday.
TRUMP’S FEDERAL HIRING FREEZE EFFECT ON IRS TAX RETURNS...
Trump’s recent executive order enacting a federal hiring freeze—excluding the IRS for 90 days—has raised concerns about potential delays this tax season. The IRS announced that job offers with start dates after Feb. 8 will be revoked, but officials say they will reallocate staff to minimize disruptions. Former IRS Commissioner Charles Rettig warned that “every facet of IRS operations will be significantly impacted,” though experts note the agency is better staffed than in previous years due to Inflation Reduction Act funding.
NEW JERSEY LAUNCHES WORKFORCE DEVELOPMENT INITIATIVE FOR CELL & GENE THERAPY INDUSTRY... The New Jersey Council of County Colleges announced the launch of NJBioFutures, an initiative to grow the workforce to support New Jersey’s cell and gene therapy industry. Community colleges across the state will develop training and certification programs on cell and gene therapy biomanufacturing, biotechnology and biopharmaceuticals. The program is being developed with support from Johnson & Johnson and other industry partners, who are providing funding for development of the academic curriculum and modernizations to lab facilities across the college campuses.
AI UNDER CHINA’S CENSORSHIP... Lots of recent news has come out about DeepSeek, the Chinese developed AI Language Learning Model (LLM), where strict information controls seem to be shaping its responses. Observers have noted that the chatbot self-censors on sensitive topics, sometimes providing evasive answers or deleting responses. Its operation highlights the broader challenges AI models face in regulated environments, balancing information access with government-imposed restrictions. American AI experts were floored at how low the purported cost of the high-power LLM was, but still share American data privacy and security concerns about it.
THE STATE OF THE STATES
SESSIONS BY THE NUMBERS:
Forty-seven states are in regular session.
WHAT WE'RE WATCHING:
Washington state lawmakers have filed bipartisan legislation to lift a ban on direct sales of electric vehicles to customers. Tesla is already allowed to sell cars direct to consumers, but the bill would place companies like Rivian and Lucid in the same category.
Ohio’s House Children and Human Services Committee held its first hearing on legislation to direct $10 million into a child care program meant to boost the workforce. The program would create an application process for employers whose employees need child care assistance.
LAWMAKERS... IN OR OUT?
The House... convenes today at 10:00 AM. The full schedule may be found here.
The Senate... convenes today at 10:30 AM. The full schedule may be found here.
HAPPENING ON THE HILL
The House...
Committee on Small Business will hold a hearing TODAY, 2/5 at 10:00 AM entitled “Hope on the Horizon: Prioritizing Small Business Growth in the 119th Congress.”
Committee on Energy and Commerce Energy Subcommittee will hold a hearing TODAY, 2/5 at 10:15 AM entitled “Powering America’s Future: Unleashing American Energy.”
Committee on Energy and Commerce Health Subcommittee will hold a hearing Thursday, 2/6 at 10:00 AM entitled “Combatting Existing and Emerging Illicit Drug Threats.”
Ways and Means Committee will hold a hearing Thursday, 2/6 at 2:00 PM entitled “Time’s Running Out: Prosecuting Fraudsters for Stealing Billions in Unemployment Benefits from American Workers.”
The Senate...
Committee on Small Business and Entrepreneurship will hold a hearing TODAY, 2/5 at 10:00 AM entitled “Business Meeting to consider pending business of the committee.”
Committee on Banking, Housing, and Urban Affairs will hold a hearing TODAY, 2/5 at 10:00 AM entitled “Investigating the Real Impacts of Debanking in America.”
Committee on Finance will hold a hearing Thursday, 2/6 at 10:00 AM entitled “Hearing to Consider the Nomination of Jamieson Greer, of Maryland, to be United States Trade Representative, with the rank of Ambassador Extraordinary and Plenipotentiary.”
BILLS OF INTEREST
Check back tomorrow for possible updates.
AT THE AGENCIES
The U.S. Department of Labor
Check back tomorrow for possible updates.
The U.S. Department of the Treasury
Check back tomorrow for possible updates.
The U.S. Department of Commerce
Check back tomorrow for possible updates.
The U.S. Trade Representative
Check back tomorrow for possible updates.
The U.S. Small Business Administration
Check back tomorrow for possible updates.
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