Tag: unemployment
Americans Losing Their Jobs

New Data Show Trump Tariffs Are Ruining Job Market

Unemployment claims have risen for the second-straight week, exceeding economists' expectations at the highest level in eight months, the Department of Labor announced on Thursday.

Initial jobless claims stood at 247,000 for the week ending on May 31, higher than the 236,000 claims that economists had been projecting. That jump caused the four-week moving average to increase by 4,500.

"New jobless claims are ticking up. The numbers are still low, but there's an upward trend. This is key to watch. The main reason the US economy has been so resilient is 159.5 million people are still employed and getting paychecks. If that goes down, a downward spiral will start,” Heather Long, the chief economist at Navy Federal Credit Union, wrote on X.

According to the Labor Department, the biggest surge in new unemployment claims was in Michigan, where 8,490 people filed claims—up 3,259 from the week prior. The state’s job losses came from the manufacturing industry, which is being hit hard by President Donald Trump's steel, aluminum, and automobile tariffs.

Indeed, a number of automobile manufacturing companies have announced layoffs, including Stellantis, Ford, General Motors, and a handful of other companies that manufacture car parts.

Ultimately, the increase in jobless claims comes after the payroll company ADP said that just 37,000 private-sector jobs were created in May—a major slowdown and possibly the first tangible signs that Trump's idiotic tariffs are now impacting the job market.

Economists said that Trump’s tariffs would cut into companies’ profit margins, leading to increased prices, layoffs, or both. And the nonpartisan Congressional Budget Office said on Wednesday that the tariffs would cause the U.S. economy to shrink.

“If the president does not reverse course, he will increase the unemployment rate to recessionary levels,” Michael R. Strain, director of economic policy studies at the American Enterprise Institute, told CNBC in April.

All eyes are now on the Bureau of Labor Statistics, which will release its monthly jobs report Friday morning. Should that number come in under economists’ expectations, it will be more proof that their fears of Trump’s tariffs are coming true.

Reprinted with permission from Daily Kos.

Latest Dow All Time High Indicates Biden Recovery Is Thriving

Latest Dow All Time High Indicates Biden Recovery Is Thriving

(Reuters) - The blue-chip Dow hit an all-time high shortly after markets opened on Thursday, extending a record-setting run as a drop in weekly jobless claims showed no impact yet on employment from the surge in U.S. coronavirus infections.

The Dow Jones Industrial Average rose 33.85 points, or 0.09%, at the open to 36,522.48.

The S&P 500 opened higher by 1.17 points, or 0.02%, at 4,794.23, while the Nasdaq Composite dropped 7.23 points, or 0.05%, to 15,758.98 at the opening bell.

(Reporting by Medha Singh in Bengaluru; editing by Uttaresh.V)

Protestors demand fair wages in Minneapolis, MN.

To Fix The Labor Shortage, Start With The Wage Shortage

A recent newspaper article had an astonishing headline: "Labor shortages end when wages rise."

Gosh, Captain Obvious, what an amazing discovery! Someone notify the Nobel Prize committee, for this revolutionary revelation about How-Things-Work surely will win this year's prize in economics. Better yet, someone notify Sen. Mitch McConnell and that whole gaggle of Republican governors whose theory of labor economics begins and ends with the medieval demand that workers be whacked with a stick to make them do what the bosses want.

At issue is the furious complaint by restaurant chains, nursing homes, call centers, Big Ag, and other low-wage employers that they have a critical labor shortage. It seems that millions of workers today are hesitant to take jobs because there's no affordable child care, or the jobs they're offered expose them and their families to illness and death from COVID-19, or the work itself is abusive and demeaning... or all of the above.

Business chieftains wail that, with the economy reopening, they've been advertising thousands of jobs for waiters, nursing assistants, poultry workers, and such, but they can't get enough takers. So, the Congress critters and governors who obsequiously serve the corporate powers have rushed to their rescue. Shouting, "Whack 'em with a stick!" these mingy politicians are stripping away jobless benefits for America's workers, trying to leave them with no choice but to take any crappy job they're offered. It gives new meaning to the term "workforce."

In fact, the bosses themselves already have an honest way to get the workers they need without calling in government muscle: Offer fair wages! As the owner of a small chain of restaurants in Atlanta notes, the struggle to find the staff he needs suddenly turned easy when he stopped lowballing wages, going from $8 to $15 an hour. Not only did he get the workers he needed, but he says, "We started to get a better quality of applicants." That translated to better service, happier customers, and more business.

The real economic factor in play here is not wages; it's value. If you treat employees as cheap, then that's what you'll get. But if you view them as valuable assets, then that's what they'll be — and you'll all be better off.

At a recent congressional hearing on America's so-called labor shortage that corporate bosses have been wailing about, mega-banker Jamie Dimon, CEO of JPMorgan Chase, offered this insight: "People actually have a lot of money, and they don't particularly feel like going back to work."

Uh... Jamie... a lot of money? Most people are living paycheck to paycheck, and since COVID-19 hit, millions of Americans have lost their jobs, savings and even homes. So, they're not exactly lolly-gagging around the house, counting their cash.

Instead of listening to the uber-rich class ignorance of Dimon (who pocketed $35 million last year), Congress ought to be listening to actual workers explaining why they're not rushing back to the jobs being offered by restaurant chains and poultry factories. They would point out that there is no labor shortage; there's a wage shortage.

More fundamentally, there's a fairness shortage. It was not lost on restaurant workers, for example, that while millions of them were jobless last year, their corporate CEOs were grabbing millions, buying yachts, and living large. Yet more than half of laid-off restaurant workers couldn't get unemployment benefits because their wages had been too low to qualify. Then there's the high risk of COVID-19 exposure for restaurant employees, an appalling level of sexual harassment in their workplace, and demeaning treatment from abusive bosses and customers.

No surprise, then, that more than half of employees said in a recent survey that they're not going back to those jobs. After all, even a dog knows the difference between being stumbled over and being kicked!

So rather than demanding that government officials force workers to return to the old exploitative system, corporate giants should try the free-enterprise solution right at their fingertips: Raise pay, improve conditions, and show respect. Create a place where people want to work!

For a straightforward view from workers themselves, go to the advocacy group, OneFairWage.site.

To find out more about Jim Hightower and read features by other Creators Syndicate writers and cartoonists, visit the Creators webpage at www.creators.com.

Federal Reserve Expected To Maintain Low Rates Despite Rising Prices

Federal Reserve Expected To Maintain Low Rates Despite Rising Prices

Washington (AFP) - Even in the face of rising inflation, the lackluster progress on restoring jobs lost during the pandemic means the US Federal Reserve is unlikely to budge on monetary policy when it meets next week. Central bank chief Jerome Powell has made it clear the Fed will hold the line on its massive bond buying program and rock-bottom lending rates until data reflect lasting improvement in employment across all economic strata. But the recent surge in inflation in the world's largest economy is ramping up the pressure on policymakers to begin to pull back on stimulus programs. Hints ...

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