Employment

Japan’s growth streak starts to look shakier

15 Nov 2017

GDP grew an annualised 1.4 pct last quarter, marking the longest unbroken growth run in 16 years. The data is volatile, and often revised, but a global boom appears to be offsetting weaker domestic demand. That underscores the need for further structural reform.

UK economy will share Theresa May’s pain

13 Nov 2017

The Prime Minister is facing growing challenges to her leadership from the ruling party’s pro- and anti-EU factions. Political disarray increases the risks that leaving the European Union will do serious economic harm. A softer Brexit is growing harder to deliver.

Heads or tails, Mark Carney loses

17 Oct 2017

British inflation has hit 3 percent, the highest level since 2012. No wonder the Bank of England chief is hinting policy rates may soon rise. Carney’s problem is that he will be criticised for hurting a slow-growing economy if he hikes and accused of inconsistency if he delays.

Bad jobs data tests White House braggadocio

6 Oct 2017

The U.S. economy lost 33,000 positions last month, largely due to hurricanes Harvey and Irma. It’s probably a temporary blip. But President Trump and his aides have touted monthly employment gains and other snapshot economic figures when it suits them. They own the downturns, too.

Dixon: No escape from debtors’ prison for Greece

11 Sep 2017

Alexis Tsipras is desperate to avoid surveillance of his actions by the country’s creditors when its third bailout ends next August. The best the Greek prime minister can hope for is to move from a high-security unit to an open prison – and only if he behaves.

Deutsche Bank CEO tells truth to robotic employees

7 Sep 2017

John Cryan wants the German bank to embrace a “revolutionary spirit” as people lose their jobs to artificial-intelligence technology. His comments reflect the competitive reality – but Deutsche’s whopping 86 pct cost-to-revenue ratio makes its staff among the most vulnerable.

Macron may be French unions’ new best friend

5 Sep 2017

The French president’s labour reforms will give firms more scope to bargain directly with their workers, rather than submit to industry-wide agreements. That will fan demand for training in employment law. The odd side-effect could be increased trade union membership.

Dream of U.S. job surge is partly in Trump’s hands

1 Sep 2017

Although August’s 156,000 new positions fell short of forecasts, the trend is steady. Yet the president may soon subject nearly 800,000 children of illegal immigrants to deportation. Some 30,000 could lose jobs each month; GDP would suffer too. That’s an avoidable hit to growth.

Macron’s labour reforms are a gutsy start

31 Aug 2017

Changes such as greater bargaining freedom for employers will make the economy a bit more dynamic. The symbolism is as important. Introducing a highly unpopular cap on unfair dismissal payouts shows President Emmanuel Macron is willing to reform at the expense of poll ratings.

British wage mystery has non-British explanation

16 Aug 2017

The jobless rate has fallen to 4.4 percent, its lowest in over four decades, yet wage growth is tepid. Two things help explain the anomaly: a pool of people on zero-hour contracts available to switch into permanent jobs, and a surprising rise in EU nationals working in the UK.

Silicon Valley tries to out-Trump Trump on jobs

2 Aug 2017

Amazon is adding 50,000 to its ranks. Google is donating $50 mln to training. Touting such plans is a response to fears that tech will, like trade, be blamed for killing jobs as automation and AI take hold. Aping the president’s braggadocio to reduce any sting is a smart move.

U.S. colleges may need to start on M&A course

25 Jul 2017

After tripling in real terms since the early 1970s, tuition costs are now rising only a hair faster than CPI. Cost cuts won't offset flagging enrollment, the result of a stronger job market and demographic shifts. Merging could help, especially for small private schools.

Central banks have no choice but to keep the faith

20 Jul 2017

ECB chief Mario Draghi and Bank of Japan boss Haruhiko Kuroda have spent trillions of euros and yen without generating much inflation. Nor is it clear when a pick-up in growth will feed through into prices. Yet they are obliged to insist their policies will work eventually.

BBC stars will gain from radical pay transparency

19 Jul 2017

The UK public broadcaster has named everyone who earns more than 150,000 pounds a year. The main conclusion is that valuing TV presenters is guesswork. As with chief executives of listed companies, disclosing compensation will just enable them to demand even higher wages.

Britain learns how not to think about work

12 Jul 2017

A review of the UK “gig economy” suggests some jobs have conditions that make them little better than having no job at all. Others appeal much more than pay levels would suggest. Employment data does not capture the difference. Developing countries have known this for decades.

Retail click jobs can brace only so many bricks

5 Jul 2017

The next decade threatens to doom U.S. workers at the likes of Macy's, Staples and Foot Locker. E-commerce should offset a good portion of the losses. Even assuming a healthy 40 pct increase in such roles, though, a Breakingviews analysis suggests some 600,000 jobs may vanish.

Head-office heave shows Tesco’s weak hand

28 Jun 2017

The British supermarket is cutting a quarter of staff at its headquarters. This should help with plans to remove 1.5 billion pounds of costs and hit an ambitious 3.5 pct-4 pct margin target. Job losses are an unfortunate symptom of Tesco's limited pricing power.

Draghi’s hints have more clout than Yellen’s deeds

28 Jun 2017

ECB chief Mario Draghi had more market impact by alluding to higher rates than Fed Chair Janet Yellen did by hiking them two weeks ago. That fits a recent pattern: central bankers who have yet to tighten policy are more apt to upset expectations – and that’s what moves prices.

Germany can jump growth hurdle courtesy of Brexit

27 Jun 2017

Europe’s biggest economy is expanding so quickly that there’s a growing dearth of skilled labour. The shortage may be severe enough to depress the long-term growth rate, the Bundesbank says. One way to plug the gap is to attract EU workers who no longer feel welcome in Britain.

Brexit one year on: an alternative history

23 Jun 2017

It has been a year since Britain voted narrowly to remain in the EU, a (fake) bank CEO writes in a memo to staff. Few expected uncertainty would linger so long after the referendum. Austerity and populism point to challenges in the UK. Thankfully, the euro zone looks attractive.