Latest news with #USDOL
Argaam
5 days ago
- Business
- Argaam
US jobless claims dip for first time in 3 weeks
The number of US claims filed for unemployment benefits declined for the week ended Aug. 9, after rising for two weeks in a row, signaling continued labor market resilience. Initial jobless claims decreased by 3,000 to 224,000 during the week, the US Department of Labor said today, Aug. 14. This came against expectations of a rise to 228,000 from the previous week's revised figure of 227,000. The four-week moving average of jobless claims rose by 750 to 221,750, compared to the previous week's upwardly revised average of 221,000 (+250).
Forbes
5 days ago
- Business
- Forbes
AI And The Future Of Work: Andrew Yang's Caution Vs. Labor's Optimism
Andrew Yang, technology policy advocate and former presidential candidate, has been sounding alarms about automation's impact for years. At the Ai4 conference in Las Vegas, he was interviewed by Nancy Scola on his views of AI and universal basic income, while at another session, Taylor Stockton, Chief Innovation Officer at the U.S. Department of Labor shared the administration's plans to deal with AI and workforce disruption. The two offered sharply different takes on how artificial intelligence is reshaping the workforce, and what should be done about it. While Yang urges caution on AI-accelerated job disruption, Stockton says those predictions are missing the bigger story. Both see AI reshaping the labor market. They just disagree on what's needed to support the changing labor market. Yang: The Displacement Is Already Happening Yang doesn't speak in hypotheticals. He says CEOs have told him directly they've frozen hiring and started layoffs because AI tools are now doing work once assigned to humans. That shift isn't theoretical. It's already showing up in revised job numbers. From May to July, the bulk of new jobs came from healthcare, an industry still difficult to automate. Other sectors are seeing a slow drain. In his words, a 'tidal wave' is rolling through the economy while Washington stands 'inert or unresponsive.' He expects millions in call centers, retail, and food service to be hit, along with white-collar professionals who assumed they were safe. 'Anyone who thinks that the white-collar blood bath is nonsense is going to be wrong,' he said, warning it may only take months for skeptics to see the scale. The human cost, Yang added, doesn't always make headlines. 'If you're a 50-year-old executive who has lost a job, that's not a really sympathetic narrative to the population at large,' he noted. 'But that's a real impact for the family, and then you multiply that times 100,000 and we have a real problem.' His solution is to share the gains. If AI drives GDP per capita from $82,000 into six figures, part of that should reach households directly. He points to universal basic income and expanded child tax credits as ways to keep people afloat during upheaval. For Yang, it's not just about paychecks. Once the link between effort and reward breaks, he says, people stop trying. Younger generations, he warns, are already showing drops in conscientiousness and agreeableness. Some of that, he fears, can't be reversed. US Department of Labor: AI as an Engine for Opportunity Stockton's starting point is different. He doesn't buy into visions of empty offices and shuttered plants. 'The fear of mass job displacement is deeply overstated,' he says. History shows that major technology shifts, from mechanized farming to the Internet, ended with more jobs, not fewer. AI, in his telling, is following a similar pattern. He points to roles emerging right now such as AI prompt engineers and governance analysts, many of which don't require a traditional degree. In healthcare, AI is producing clinical notes so physicians can spend more time with patients. On factory floors and construction sites, sensors catch hazards before they become accidents. The Department of Labor's plan hinges on agility, tracking AI's impact on jobs in real time, using that data to adjust policy, and running pilot programs for rapid retraining. Stockton wants apprenticeships to become a core path into careers, targeting one million active placements in critical fields such as advanced manufacturing and AI infrastructure. He also wants AI literacy baked into education from K-12 to adult retraining. Stockton shared an emphasis on apprenticeships and alternatives to the traditional 4-year college education as a path to relevance in the AI-powered economy. A study he cited showed 52 percent of the Class of 2023 unemployed or underemployed a year after graduation. 'The College for All movement has failed,' he told the audience. 'A bachelor's degree no longer guarantees access to professional employment. Apprenticeships offer a faster, debt-free alternative…and combine paid job experience with training that directly maps to employer needs.' The federal approach isn't just reactive. In July, the White House released the 'America's AI Action Plan,' a 90-point blueprint under three main headings: Accelerating AI Innovation, Building American AI Infrastructure, and Leading in International AI Diplomacy and Security. It calls for streamlining permits for data centers and chip plants, strengthening the electric grid, creating regulatory sandboxes, and exporting a full-stack AI package to allies, while keeping U.S. values embedded in the technology. Stockton sees the plan as a wind at the back of his workforce push. Common Ground, Clear Differences Both Yang and Stockton agree AI's advance is fast and the pace will unsettle certain jobs. They see healthcare and other people-focused work as relatively safe for now. Both stress that while AI can handle parts of a process, people must decide what the system should aim for. Where they diverge is in the first move. Yang wants immediate income support to keep families stable while the market finds its footing. Stockton believes the priority is rapid adaptation including AI literacy, nimble training programs, and routes into new careers. Yang points to struggling college grads and laid-off mid-career workers. Stockton thinks some of those losses are more about post-pandemic corrections or strategic shifts than about AI alone. Studies fuel both arguments. McKinsey pegs the annual global productivity boost from generative AI at up to $4.4 trillion. PwC reports that jobs exposed to AI have grown 38 percent in the U.S. since the tech's arrival, though roles with less exposure have grown faster. News stories document both companies replacing whole teams with AI systems and companies using AI to amplify human work. In high-risk industries, AI has improved safety and output, which mirrors Stockton's vision in action. In customer service or routine analysis, AI is consolidating headcount, exactly what Yang warns about. What's Likely Ahead Over the next five years, productivity gains are likely to show up before job growth does. Companies that adopt AI early will push output higher without adding staff. Jobs will keep blending human skills with AI tools, making Stockton's AI literacy agenda more pressing. And if wages lag profits for too long, political pressure for income-based solutions could build quickly. Both men see high stakes. Stockton imagines a workforce ready to keep pace. Yang doubts the system can pivot fast enough. A blended strategy including training and adaptation alongside income support could prove the safest bet. Whether it's adopted may depend on whether policymakers, business leaders, and educators can keep up with the technology's acceleration. AI isn't waiting. Neither can the people whose jobs it touches.
Bloomberg
6 days ago
- Business
- Bloomberg
US Core Inflation Accelerates Amid Statistics Bureau Upheaval
Underlying US inflation accelerated in July, though the cost of tariff-exposed goods didn't rise as much as feared, boosting expectations that Federal Reserve officials will lower interest rates when they meet next month. The core consumer price index, which excludes the often volatile food and energy categories, increased 0.3% from June, the strongest pace since the start of the year. The source of this information is the Bureau of Labor Statistics—an arm of the US Department of Labor—and its data was in line with economists' forecasts, as was the overall CPI on a monthly basis.
Yahoo
25-07-2025
- Business
- Yahoo
In The Motley Fool's Latest Research, Core Inflation Is at 2.9% -- Here's Why Investors Should Pay Attention to This Important Number
Key Points Core inflation strips out food and energy prices. The figure remained stubbornly high, making the Federal Reserve hesitant to cut interest rates further. These 10 stocks could mint the next wave of millionaires › The U.S. Department of Labor recently released its consumer price inflation (CPI) report for June. The inflation reading showed a 2.7% year-over-year increase, while core inflation (excluding food and energy prices) rose 2.9%. Economists, including those at the Federal Reserve, examine the core CPI closely, since it removes volatile food and energy prices that can distort the figure. Last month's core CPI showed an uptick, although it's well below 2022 levels. Still, the stubbornly elevated core inflation rate has real-life implications for households, companies, the overall economy, and the stock market. The Fed's bind The Federal Reserve has a dual mandate: to achieve price stability and maximum employment. The Fed targets a long-run inflation rate of 2%. While it uses the Personal Consumption Expenditures Price Index to measure progress against inflation, the two measures are similar. The higher inflation reading could portend a sustained uptick in the CPI, particularly as companies, such as Walmart, pass along higher tariffs to consumers. That could keep the Fed on the sidelines instead of lowering short-term interest rates, which means higher borrowing costs for consumers on certain types of loans, and potentially, slowing consumer spending. That, in turn, would hurt economic growth since this activity accounts for more than two-thirds of the U.S. economy. Elevated short-term interest rates also have implications for the overall stock market. Generally, interest rates and equity prices move in opposite directions. That is, higher interest rates tend to drive down stock prices. Economic fallout In ordinary circumstances, higher inflation means an overheated economy. The Fed would raise short-term interest rates in an effort to lift borrowing costs and cool things down. However, the central bank has to take a more cautious approach this time around. The inflation reading comes amid the U.S. economy showing signs of slowing. That puts the Fed in an even more difficult position, and it seems likely it will keep rates steady until inflation abates. The central bank had already been in a holding pattern, although it would have lowered rates had tariff implementations not created economic uncertainty, according to Chairman Jerome Powell. It's a delicate balancing act for the Fed in pursuing its dual mandate. Wait too long, and it'll tip the economy into a recession. And if the Fed cuts rates too early, consumer spending could accelerate, fueled by cheaper borrowing. That could result in even higher inflation. This can be a challenging environment for equity investors to navigate. However, if you concentrate on strong businesses with competitive advantages, you may find bargains as the scenarios play out. The effect on companies Higher inflation doesn't just affect consumers. It also impacts companies' sales and profitability. When companies confront higher costs, they'll often try to pass those along to customers in the form of higher prices. That could hurt demand for certain products, particularly those that aren't necessities. Companies may also not be able to raise prices enough to offset their higher expenses. In that case, their costs will increase, and they'll see a lower profit margins. That's especially true now since many businesses have already raised prices over the last few years, and consumers are wary of additional increases. On the flip side, strong companies will survive the temporary dip in profitability. In fact, they may emerge stronger, since weaker competitors may fall by the wayside. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $442,907!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,654!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $634,627!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of July 21, 2025 Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy. In The Motley Fool's Latest Research, Core Inflation Is at 2.9% -- Here's Why Investors Should Pay Attention to This Important Number was originally published by The Motley Fool
Globe and Mail
17-07-2025
- Business
- Globe and Mail
Market Analysis: July 17th, 2025
Global Markets Canadian Markets In Canada, the TSX advanced as oil prices climbed, helping lift energy shares. Investors also looked ahead to potential trade updates and digested a wave of corporate news that added to the day's cautious optimism. Oxford Economics projects that Canada's increased defense spending will slightly boost economic growth by 0.1 percentage points in 2025 and 2026, raising annual growth to 0.9% this year and 0.4% next year. However, the firm warns this modest lift won't be enough to prevent the ongoing economic downturn, which began last quarter and is expected to continue through the end of 2025. The downturn, driven by a trade war and escalating U.S. tariffs, could result in the loss of up to 140,000 jobs, as the negative effects spread beyond the initially impacted industries. American Markets U.S. stocks rallied, supported by robust earnings from Taiwan Semiconductor Manufacturing Company (TSMC), which boosted sentiment in the broader chipmaking sector. Investors were also reassured by signs that the U.S. economy remains resilient despite ongoing tariff tensions, as retail sales rebounded sharply in June, rising 0.6%, well above the 0.1% forecast and a strong recovery from May's 0.9% decline. Adding to the upbeat tone, the U.S. Department of Labor reported that initial jobless claims fell to 221,000 for the week ending July 12—the fifth consecutive weekly decline—and the lowest reading in three months. This points to a strengthening labor market, further supporting expectations of a soft landing for the economy. European Markets In Europe, stocks snapped a four-session losing streak, led higher by strong earnings from Swiss engineering giant ABB and renewed optimism about a potential U.S. trade deal. However, concerns remain, as a top German central banker warned that extended U.S. tariffs could erase all economic growth for Germany through the rest of 2025 and into 2026. Meanwhile, UK stocks also rose despite a batch of weaker labor data. Annual wage growth (excluding bonuses) slowed to 5%—its lowest since Q2 2022—while payroll employment dropped by 41,000 in June, following a 25,000 decline in May. Although concerning, the softer employment and wage data helped offset a strong inflation reading from the day prior, reigniting hopes that the Bank of England may still move forward with an interest rate cut at its upcoming meeting. UK unemployment has now reached a four-year high, adding to pressure on policymakers to support the economy. Corporate News Alphabet Inc: OpenAI added Google Cloud to its list of infrastructure providers to meet soaring AI compute needs, signaling growing competition in the AI space and a strategic diversification away from Microsoft. Alimentation Couche-Tard Inc: The company withdrew its $46 billion bid to acquire Japan's Seven & i Holdings, citing a lack of sincere or constructive engagement and accusing the Japanese retailer of deliberate delays. Inc: A federal judge dismissed a class-action lawsuit against Amazon's decision to introduce ads on Prime Video unless users pay a $2.99 opt-out fee, ruling the company did not breach its subscriber agreement. Bank of America Corp: Piper Sandler raised its price target on Bank of America to $49 from $46, citing strong Q2 earnings and revised guidance. Coca-Cola Co: Donald Trump announced that Coca-Cola has agreed to use cane sugar in its U.S. beverages, replacing high-fructose corn syrup, following his talks with the company. Dollar General Corp: CFO Kelly Dilts will step down effective August 28 after just over two years in the role. The company has begun searching for her successor. Elevance Health Inc: The health insurer lowered its annual profit forecast to about $30 per share from a prior range of $34.15 to $34.85, as high medical costs in government plans persist. Quarterly medical loss ratio rose to 88.9%, missing estimates slightly. Goldman Sachs Group Inc: Jefferies increased its price target to $815 from $801, pointing to steady revenue performance, capital markets strength, and growth in asset and wealth management. Kinder Morgan Inc: Q2 profit jumped 24% on higher natural gas volumes and increased demand for its pipeline infrastructure. Daily gas transport hit 44,585 BBtu, up from 43,123 BBtu a year earlier. Meta Platforms Inc: Marc Andreessen will testify in court to defend his role during a $5 billion privacy settlement in 2019. The non-jury trial is ongoing in Delaware's Court of Chancery. Microsoft Corp: TD Cowen raised its price target to $580 from $540, citing strong revenue potential from Azure and sustained momentum in the public cloud sector. MP Materials Corp: The rare earth miner plans to sell $500 million in stock after signing a supply deal with Apple. Proceeds will fund growth and general corporate purposes. Novartis AG: Raised its full-year earnings guidance, citing strong Q2 sales, which rose 12% to $14 billion, and a 20% increase in adjusted operating income. The company also announced a $10 billion share buyback. PepsiCo Inc: Raised its outlook for annual core profit decline, helped by improved demand in energy drinks and healthier sodas. Q2 revenue rose 1% to $22.73 billion, beating expectations. Sarepta Therapeutics Inc: Will cut 500 jobs and add a safety warning to its gene therapy Elevidys after two patient deaths from liver failure, causing physician hesitation and regulatory scrutiny. Starwood Property Trust Inc: Announced a $2.2 billion acquisition of Fundamental Income Properties, which includes 467 properties across 44 states, funded through a mix of cash, debt, and equity. Taiwan Semiconductor Manufacturing Co Ltd (TSMC): Reported record net profit of T$398.3 billion (up 60.7% YoY) and lifted revenue guidance to 30% annual growth in USD terms, but warned of potential impacts from future U.S. tariffs. United Airlines Holdings Inc: Boosted its full-year profit outlook to $9–$11 per share, up from prior estimates, citing increased travel and business bookings amid declining global uncertainty. Walmart Inc: Announced a restructuring of store-support and training roles, including eliminating the market coordinator position, to streamline operations and focus on higher-volume locations.
