 |
|
|
|||||
The number of Americans filing new applications for unemployment benefits increased more than expected last week, while hiring by private employers slowed in August, offering further evidence that labor market conditions were softening. The reports were released a day after government data showed there were more unemployed people than positions available in July for the first time since the COVID-19 pandemic. Job growth has shifted into stall-speed, with economists blaming President Donald Trump’s sweeping import tariffs and an immigration crackdown that is hampering hiring at construction sites and restaurants. The slackening labor market likely positions the Federal Reserve to resume cutting interest rates later this month, though much would depend on August’s employment report to be published on Friday and consumer price data due next week. “We continue to see softness growing in the labor market as tariff policy uncertainty lingers, immigration changes take effect, and AI adoption grows,” said Eric Teal, chief investment officer at Comerica Wealth Management. “The silver lining is the weaker the jobs data, the more cover there is for stimulative interest rate cuts that are on the horizon.” Initial claims for state unemployment benefits rose 8,000 to a seasonally adjusted 237,000 for the week ended August 30, the Labor Department said. Economists polled by Reuters had forecast 230,000 claims for the latest week. Still, layoffs remain relatively low as businesses generally hoard workers following difficulties in finding labor during the pandemic, anchoring the labor market. The unsettled economic environment, stemming from the protectionist trade policy has, however, left businesses reluctant to increase headcount. That hesitancy to hire means people who are laid off have difficulty landing new opportunities. The number of people receiving benefits after an initial week of aid slipped 4,000 to 1.940 million during the week ending August 23, the claims report showed. The Fed’s “Beige Book” report on Wednesday noted that “firms were hesitant to hire workers because of weaker demand or uncertainty.” The softening labor tone was reinforced on Thursday with the release of the ADP National Employment Report, which showed private employment increased by 54,000 jobs last month after advancing by 106,000 in July. The downbeat assessment of the labor market was also evident in the Institute for Supply Management survey, which showed a measure of services sector employment contracting for a third straight month in August. Economists, as a result, are bracing for another month of tepid job growth when the Labor Department’s Bureau of Labor Statistics publishes its closely watched employment report on Friday. A Reuters survey of economists estimated nonfarm payrolls increased by 75,000 jobs last month after rising by 73,000 in July. Employment gains averaged 35,000 jobs per month over the three months to July compared to 123,000 during the same period in 2024, the government reported in August. The unemployment rate is forecast to climb to 4.3% from 4.2% in July. Fed Chair Jerome Powell last month signaled a possible rate cut at the U.S. central bank’s September 16-17 policy meeting, acknowledging the rising labor market risks, but also added that inflation remained a threat. The Fed has kept its benchmark overnight interest rate in the 4.25%-4.50% range since December. Stocks on Wall Street were trading higher. The dollar rose against a basket of currencies. U.S. Treasury yields fell. Trade deficit widens Tariffs continued to influence trade data. A separate report from the Commerce Department’s Bureau of Economic Analysis showed the trade deficit ballooned 32.5% to $78.3 billion in July amid record inflows of capital and other goods. The duties have caused wild swings in imports and ultimately the trade deficit, distorting the overall economic picture. A U.S. appeals court ruled last week that most of Trump’s duties, which have boosted the nation’s average tariff rate to the highest level since 1934, were illegal, creating more uncertainty for businesses. Imports soared 5.9% to $358.8 billion. Goods imports vaulted 6.9% to $283.3 billion. They were boosted by a $12.5 billion surge in imports of industrial supplies and materials, which reflected a $9.6 billion increase in non-monetary gold imports. But petroleum imports were the lowest since April 2021. Capital goods imports increased $4.7 billion to a record $96.2 billion, driven by computers, telecommunications equipment and other industrial machinery. Semiconductor imports declined $0.8 billion. Imports of consumer goods increased $1.3 billion, though pharmaceutical preparations imports fell $1.1 billion. Imports of motor vehicles, parts and engines decreased $1.4 billion. Exports rose 0.3% to $280.5 billion. Exports of goods edged up 0.1% to $179.4 billion. Capital goods exports increased $0.6 billion to a record $59.9 billion, lifted by shipments of computer accessories and civilian aircraft. Exports of excavating machinery fell $1.5 billion. Exports of motor vehicles, parts and engines increased $0.3 billion. Industrial supplies and materials exports decreased $0.2 billion as finished metal shapes dropped $2.5 billion. Non-monetary gold exports increased $2.9 billion. The goods trade deficit widened 21.2% to $103.9 billion. The goods trade deficit with China increased $5.3 billion to $14.7 billion. Imports of services increased $1.7 billion to a record $75.5 billion in July, reflecting rises in transport, travel and other business services. Exports of services increased $0.6 billion to a record high of $101.0 billion, driven by the transport, charges for the use of intellectual property as well as government goods and services. Travel services, however, dropped $0.3 billion amid the White House’s immigration crackdown. Trade subtracted a record 4.61 percentage points from GDP in the first quarter before sharply reversing and adding 4.95 percentage points in the second quarter, also the largest contribution on record. The economy grew at a 3.3% annualized rate last quarter after contracting at a 0.5% pace in the first three months of the year. Goldman Sachs lowered its third-quarter GDP growth estimate to a 1.6% rate from a 1.7% pace. “Disruptions from tariffs are still making their rounds across the economy and increased uncertainty continues to be present in firms’ decision-making processes,” said Eugenio Aleman, chief economist at Raymond James. Lucia Mutikani, Reuters
Category:
E-Commerce
If you’re a regular Fast Company reader, you may come check the site when you want news, or follow us on social media. But when you’re looking for something on Google, would you also like to find out if Fast Company has covered your question already? We know the Google search pages are getting harder and harder to navigate, with AI summaries and countless little boxes, but there’s a new way to ensure you’re seeing Fast Company stories relevant to your query near the top of your search results. Google has a new feature called “Preferred Sources,” which lets you select which news outlets appear in the Top Stories box. The next time you’re searching for a news event, you’ll see relevant Fast Company stories first instead of a random selection of local news sites rehashing the same version of the news. Google also plans to roll out a specific From Your Sources” section that will then also feature Fast Company stories. Here’s what to do. 1. Go to this Google link Clicking here will bring you to the Google page that lets you select your sources, with Fast Company already filled in. [Screenshot: Google] 2. Click the check box next to Fast Company Add a little blue check to the left. You can also do this from the Top Stories section on the search page by clicking the star icon next to the Top Stories header. 3. Refresh your search results If there’s a Fast Company story that fits your search criteria, it should now be near the top. You can also, of course, add other sites you like to further customize your experience. But now your Google results can better reflect the sources you want to hear from.
Category:
E-Commerce
President Donald Trump will host a high-powered list of tech CEOs for a dinner at the White House on Thursday night. The guest list is set to include Microsoft cofounder Bill Gates, Apple CEO Tim Cook, Meta CEO Mark Zuckerberg, and a dozen other executives from the biggest artificial intelligence and tech firms, according to the White House. One notable absence from the guest list is Elon Musk, once a close ally of Trump, whom the Republican president tasked with running the government-slashing Department of Government Efficiency. Musk had a public breakup with Trump earlier this year. The dinner will be held in the Rose Garden, where Trump recently paved over the grassy lawn and set up tables, chairs, and umbrellas that look strikingly similar to the outdoor setup at his Mar-a-Lago club in Palm Beach, Florida. The Rose Garden Club at the White House is the hottest place to be in Washington, or perhaps the world,” White House spokesman Davis Ingle said in a statement. “The president looks forward to welcoming top business, political, and tech leaders for this dinner and the many dinners to come on the new, beautiful Rose Garden patio.” The event will follow a meeting of the White House’s new Artificial Intelligence Education task force, which first lady Melania Trump will chair. During this primitive stage, it is our duty to treat AI as we would our own childrenempowering, but with watchful guidance,” she said in a statement. We are living in a moment of wonder, and it is our responsibility to prepare Americas children. The White House confirmed that the guest list for the dinner is also set to include Google founder Sergey Brin and CEO Sundar Pichai, Microsoft CEO Satya Nadella, OpenAI CEO Sam Altman and founder Greg Brockman, Oracle CEO Safra Catz, Blue Origin CEO David Limp, Micron CEO Sanjay Mehrotra, TIBCO Software chairman Vivek Ranadivé, Palantir executive Shyam Sankar, Scale AI founder and CEO Alexandr Wang, and Shift4 Payments executive chairman Jared Isaacman. Isaacman was an associate of Musk whom Trump nominated to lead NASA, only to revoke the nomination around the time of his breakup with Musk. Trump cited the revocation of the nomination as one of the reasons Musk was upset with him and called Isaacman totally a Democrat. The dinner was first reported on Wednesday by The Hill. Trumps outreach to top tech executives could deepen emerging divides within the Republican Party. One of Trumps closest allies in Congress, Sen. Josh Hawley (R-MO), delivered a sharp criticism of the tech industry during a speech at a conservative conference in Washington on Thursday morning. He criticized the lack of regulation around artificial intelligence and singled out Meta and ChatGPT. The Missouri senator also blasted a recent congressional effort that nearly passed, which would have barred states and local governments from regulating AI for 10 years. Trump, meanwhile, has criticized states for holding back AI innovation with regulations. Hawley accused conservatives of pushing to abandon states rights, all in the name of what? Big Tech? The government should inspect all of these frontier AI systems so we can better understand what the tech titans plan to build and destroy, Hawley added. At least some of the attendees at the presidents dinner are expected to participate in the task force meeting, which aims to develop AI education for American youths. Last month, the first lady launched a nationwide contest for students in grades K-12 to use AI to complete a project or address a community challenge. The project was aimed at showing the benefits of AI, while Trump has also highlighted its drawbacks. Melania Trump lobbied Congress this year to pass legislation that imposes penalties for online sexual exploitation using imagery that is real or an AI-generated deepfake. The president signed the Take It Down Act in May. By Michelle L. Price, Associated Press Associated Press writer Joey Cappelletti contributed to this report.
Category:
E-Commerce
All news |
||||||||||||||||||
|
||||||||||||||||||