Employment

Powell’s inequality goals put him over his skis

17 Mar 2021

The Fed boss wants to close the racial employment gap that widened as a result of the pandemic. But helpful policies are outside of Powell’s mandate, and stimulus might actually exacerbate the problem. The consequence is the economy could overheat before the gap closes.

Viewsroom: Greensill/Credit Suisse, GE, Diversity

11 Mar 2021

Big names in finance, like Credit Suisse and tycoon Sanjeev Gupta, are suffering collateral damage from the UK supply chain lender’s collapse. The sale of aircraft leasing brings GE closer to CEO Larry Culp’s light-bulb moment. And working from home risks a diversity disaster.

U.S. jobs jump masks big challenges

5 Mar 2021

The economy added 379,000 positions last month as temporarily laid-off workers were rehired. But there was little change in the number of long-term unemployed and the Black jobless rate rose to nearly 10%. This suggests the Fed’s wait for full employment will be a long one.

The Exchange: The post-pandemic global economy

2 Mar 2021

Policymakers will face tricky choices about when to withdraw massive policy support as economic recovery kicks in. BNP Paribas’ group chief economist, William De Vijlder, joins Swaha Pattanaik to discuss their options, the focus on inclusive growth and the outlook for inflation.

Aussie jobs firm careers into a messy overhaul

24 Feb 2021

Shares in $8 bln Seek tanked 14% on plans to break in two, lose its founder-CEO and cut its prized stake in Zhaopin. At 14 times EBITDA, the sale values the Chinese unit in line with rivals but lower than Seek’s frothy multiple. Management and investors both deserve a bad review.

Europe is now the main front in gig economy war

19 Feb 2021

Britain’s top court ruled that a group of Uber drivers are entitled to worker rights. Spain is also cracking down. It’s a stark contrast to America, where a California ballot win gave the sector hope. Tougher rules mean a longer path to profit – and higher prices for consumers.

Fed’s jobs push needs any help, including IBM’s

11 Feb 2021

Big Blue is rethinking U.S. employee needs. More than half of its openings no longer require a bachelor’s degree, for example. It's one way to meet the challenge of the post-Covid economy, in which employers can't fill vacancies even as the central bank boss frets over lost jobs.

Biden’s minimum wage hike is worth jobs tradeoff

9 Feb 2021

Critics of the U.S. president's $1.9 trln stimulus plan got a boost from a report suggesting that upping the federal pay floor to $15 an hour could cost 1.4 mln jobs. It would, though, reduce poverty. Corporate America can afford it; struggling small businesses may need leeway.

Job market will be weak link in global recovery

20 Jan 2021

Vaccines are set to end stop-start lockdowns and boost GDP. But that’s when efforts to limit jobless rates may be wound up. And bankruptcies will surge everywhere after last year’s bailouts tided businesses over. Growing labour insecurity could jeopardise the economic upturn.

Corona Capital: U.S. jobs, Covid-19 tests

8 Jan 2021

Concise views on the pandemic’s corporate and financial fallout: The U.S. job recovery is stalling as the pandemic surges, increasing the chances of more stimulus; a Covid-19 testing startup may be the reason for a rise in cases in Los Angeles.

Generational wealth gap warrants post-Covid reset

30 Dec 2020

Young people had a shrinking share of housing and equity riches even before the pandemic, which hurt them further by boosting unemployment and state debt. Shifting the tax burden to wealth, rather than income, would help. So would the radical option of millennial cash handouts.

Corona Capital: Poverty, Beer cans, Budget hotels

24 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: Hong Kong’s poverty problem was getting worse even before the virus struck; AB InBev sells the family aluminium to cut debt; Whitbread, owner of hotel chain Premier Inn, tries to get its landlords to share the pain.

Corona Capital: U.S. jobs, Real estate

2 Oct 2020

Concise views on the pandemic’s corporate and financial fallout: Americans slowly get back to work; New York City real estate sales fly to Florida.

Corona Capital: NBA’s Covid test

17 Aug 2020

Concise views on the pandemic’s corporate and financial fallout: The NBA pays it forward and back with its cheap Covid-19 test.

Helping private equity is necessary Covid-19 evil

17 Aug 2020

The UK government may offer loans to some highly leveraged companies that are owned by buyout barons. Aiding the latter feels perverse. But protecting jobs is the right priority. Authorities have had decades to fix PE flaws. The best they can do for now is to limit profiteering.

Corona Capital: U.S. Jobs, Drugs

7 Aug 2020

Concise views on the pandemic’s corporate and financial fallout: More Americans went back to work in July, though it’s a slowdown from June and Washington is still dithering over job relief aid; and President Trump wants to bring pharmaceutical production back home.

U.S. white-collar jobs hit demands bailout rethink

6 Aug 2020

Low-wage workers have been hurt the most in the pandemic. But the infection has spread to higher earners in tech and other sectors where hiring has also fallen sharply. If lawmakers debating aid for the most vulnerable don’t widen its reach, they risk a slower economic recovery.

U.S. economic reboot menaced by bug in the system

2 Jul 2020

Almost 5 million Americans found work in June as the unemployment rate fell to 11%. But the recovery could easily crash again, or freeze, because of coronavirus spikes caused by premature reopenings. Infections, not jobs, are the better numbers to track.

U.S. jobs surprise mixes hope with division

5 Jun 2020

The unemployment rate unexpectedly fell in May despite continuing lockdowns. That revives hopes of a V-shaped recovery and makes roaring stock markets look less out of touch. But 21 mln Americans are still out of work, with minorities in a protest-hit country faring worst.

Ugly U.S. jobs data hides as much as it reveals

8 May 2020

The awful April report brings the jobless rate to almost 15%. But just as February’s super low 3.5% was misleading, Friday’s figure leaves much out. Stimulus alters the income story, and what matters most is how and whether demand returns to the economy.