Latest news with #federaljobs
News.com.au
4 days ago
- Business
- News.com.au
May Jobs Report: WSJ's Chief Economics Correspondent Breaks Down the Data
The unemployment rate held steady at 4.2% despite the Trump administration's efforts to cut federal jobs and spending. WSJ's Nick Timiraos explains what the report means for the economy and the Federal Reserve.
Forbes
4 days ago
- Business
- Forbes
Job Market In May: Steady Overall, But Signs Of Weakness Grow
Employers are still hiring but most are waiting for clearer economic signs The US economy is being rocked by some major shocks emanating from the Trump administration: DOGE cuts of federal workers and research grants, higher tariffs (which also bounce around from day to day), actions against immigrants (even legal ones), bond market fears of rising deficits from the One Big Beautiful Bill… But how does all of this impact the job market? On the surface, the market seems pretty steady. According to the new Bureau of Labor Statistics jobs report for May, payrolls grew at a rate of 139,000 - a bit down from earlier months but still pretty solid. The unemployment rate also remained at 4.2 percent. But, beneath the headline numbers, there are signs in the jobs data of a weakening market - and one that Trump's actions are affecting in modest but meaningful ways. On the payroll side, almost all of the job growth occurred in two sectors: health care and leisure/hospitality, which together accounted for 80 percent of all new jobs. Employment modestly declined in professional services (especially the scientific research sector), retail trade and federal employment; indeed, federal jobs are down by 59,000 since February, and more such declines are coming as more workers who are now on administrative leave or severance pay show up as unemployed. Importantly, the large increases in overall payrolls of March and April were revised down quite substantially - from 185,000 to 128,000 in March, and from 177,000 to 147,000 in April. The revised numbers are still fairly solid, but simply not as strong or resilient as we had earlier thought. In the household survey: despite the steady unemployment rate, the number of workers employed dropped by 700,000 - driven primarily by a fairly sharp drop in labor force participation. The number of job losers, which had risen by 140,000 in April, stayed at the same (higher) number in May. How shall we interpret these numbers? The Trump administration's actions have created a growing number of job losers, concentrated in key sectors like federal employment and scientific research. Weakening consumer sentiment has modestly reduced retail employment for two months in a row, while payrolls in most other sectors are in a holding pattern. The amount of uncertainty facing employers is huge, and most prefer to wait and see what happens before hiring more workers or laying them off in large numbers. Where does the economy go from here? Whether tariffs remain higher (or rise, as they did this week on steel and aluminum), creating more inflation and less consumer spending, depends on whether Trump can cut deals with other countries - even if the deals change exports and imports only marginally. If Congress passes and Trump signs his huge tax cut bill, there may be a bump up in consumer and business spending but also rising deficits and debt, which will likely raise interest rates and curtail new investment. And, if foreign savers grow more anxious about our rising federal debt loads, their willingness to buy US treasury bonds could decline over time, leading to further interest rate increases. On the other hand, if a recession looms, interest rates could decline as bond traders expect rate cuts. The Federal Reserve bank indicated this week that it remains in a 'wait and see' mode on interest rates. Employers appear to be reacting similarly to the huge uncertainty in economic policy that the Trump administration is creating. Going forward, each month's new data will clarify the picture, but it may remain quite blurry for months to come.
Washington Post
27-05-2025
- Business
- Washington Post
DC mayor seeks business-friendly policies to spark growth amid loss of up to 40,000 federal jobs
WASHINGTON — With the nation's capital facing a pair of overlapping budget crises, D.C. Mayor Muriel Bowser has unveiled a budget proposal that bets heavily on business-friendly policies designed to boost investment and move the city away from dependence on a dwindling number of federal jobs . 'We have a shifting economy and if we don't shift with it, we'll have a city that people flee,' Bowser said Tuesday as she presented her proposals to the public — and to the D.C. Council, which will now begin debating the plan. 'If you don't have enough money, something has to go or you have to make more money.'
The Independent
27-05-2025
- Business
- The Independent
DC mayor seeks business-friendly policies to spark growth amid loss of up to 40,000 federal jobs
With the nation's capital facing a pair of overlapping budget crises, D.C. Mayor Muriel Bowser has unveiled a budget proposal that bets heavily on business-friendly policies designed to boost investment and move the city away from dependence on a dwindling number of federal jobs. 'We have a shifting economy and if we don't shift with it, we'll have a city that people flee,' Bowser said Tuesday as she presented her proposals to the public — and to the D.C. Council, which will now begin debating the plan. 'If you don't have enough money, something has to go or you have to make more money.' In the short term, Bowser has been scrambling to fill an immediate budget shortfall that was essentially created by the U.S. Congress. She announced Tuesday that her team had managed to navigate that sudden deficit without the mass layoffs that had been originally feared. In the longer term, her government faces an estimated $1 billion shortfall over the next three years created by President Donald Trump 's ongoing campaign to radically shrink the federal workforce. The city's Chief Financial Officer has estimated that 40,000 jobs for District of Columbia residents will ultimately be lost. The more immediate budget crisis started in March when the House of Representatives approved a federal government funding bill with an obscure change that forces the District government to revert to its 2024 budget parameters — effectively cutting $1.1 billion from its previously balanced budget midway through the financial year. The Senate approved that bill, but also immediately approved a simple fix that would make the D.C. budget whole again. That fix has languished in the House for two months without a vote, despite President Donald Trump publicly pushing for its immediate approval. Bowser said she still hoped the House would address the issue, but added that she couldn't wait any longer for that fix. Her government has already invoked a 2009 law allowing the city to increase spending by 6%, shrinking the 2025 shortfall to around $410 million. Now she has proposed a supplementary 2025 budget plan that — through a combination of creative bookkeeping and temporary hiring freezes — papers over the shortfall without any layoffs, furloughs or significant service cuts. 'We have had some unprecedented things to work through,' she said Tuesday during a public event to present both her 2025 emergency changes and her 2026 budget proposal. 'We think we have a sound budget here.' Both proposals will now come before the D.C. Council for debate and potential modification. Council members are expected to be sympathetic to Bowser's maneuvers on the 2025 budget emergency, but her proposal for next year's budget could spark some fierce resistance and debate. One of the most controversial aspects of Bowser's long-term budget proposal would be a tightening of the admissions requirements for Medicaid, which could result in an estimated 25,000 residents being removed. At the same time, Bowser is proposing a package of business-friendly policies designed to spark more real estate development and construction, including tax incentives, streamlined zoning procedures and a pause on some environmental restrictions and requirements. The 13-member council is currently down one member; Ward 8 representative Trayon White, who faces federal bribery charges, was expelled by his peers in February. His seat will be filled in a July special election. Most of the remaining 12 D.C. Council members were in attendance at Tuesday's budget unveiling, with some asking pointed questions about Mayor Bowser's priorities. 'A first read of this proposed budget shows DC is walking away from our commitments to lower utility bills and reduce our largest sources of carbon output and pollution from our buildings,' Ward 6 Councilmember Charles Allen said in a statement. Bowser responded that a business-friendly environment was precisely her goal as she seeks to diversify the local economy away from federal jobs while preventing a talent exodus and without raising taxes. 'We're proud of the work we've done and the decisions we've made,' she said. 'We have to have a city that grows. We have to have more jobs, more businesses and more people.'
Associated Press
27-05-2025
- Business
- Associated Press
DC mayor seeks business-friendly policies to spark growth amid loss of up to 40,000 federal jobs
WASHINGTON (AP) — With the nation's capital facing a pair of overlapping budget crises, D.C. Mayor Muriel Bowser has unveiled a budget proposal that bets heavily on business-friendly policies designed to boost investment and move the city away from dependence on a dwindling number of federal jobs. 'We have a shifting economy and if we don't shift with it, we'll have a city that people flee,' Bowser said Tuesday as she presented her proposals to the public — and to the D.C. Council, which will now begin debating the plan. 'If you don't have enough money, something has to go or you have to make more money.' In the short term, Bowser has been scrambling to fill an immediate budget shortfall that was essentially created by the U.S. Congress. She announced Tuesday that her team had managed to navigate that sudden deficit without the mass layoffs that had been originally feared. In the longer term, her government faces an estimated $1 billion shortfall over the next three years created by President Donald Trump's ongoing campaign to radically shrink the federal workforce. The city's Chief Financial Officer has estimated that 40,000 jobs for District of Columbia residents will ultimately be lost. The more immediate budget crisis started in March when the House of Representatives approved a federal government funding bill with an obscure change that forces the District government to revert to its 2024 budget parameters — effectively cutting $1.1 billion from its previously balanced budget midway through the financial year. The Senate approved that bill, but also immediately approved a simple fix that would make the D.C. budget whole again. That fix has languished in the House for two months without a vote, despite President Donald Trump publicly pushing for its immediate approval. Bowser said she still hoped the House would address the issue, but added that she couldn't wait any longer for that fix. Her government has already invoked a 2009 law allowing the city to increase spending by 6%, shrinking the 2025 shortfall to around $410 million. Now she has proposed a supplementary 2025 budget plan that — through a combination of creative bookkeeping and temporary hiring freezes — papers over the shortfall without any layoffs, furloughs or significant service cuts. 'We have had some unprecedented things to work through,' she said Tuesday during a public event to present both her 2025 emergency changes and her 2026 budget proposal. 'We think we have a sound budget here.' Both proposals will now come before the D.C. Council for debate and potential modification. Council members are expected to be sympathetic to Bowser's maneuvers on the 2025 budget emergency, but her proposal for next year's budget could spark some fierce resistance and debate. One of the most controversial aspects of Bowser's long-term budget proposal would be a tightening of the admissions requirements for Medicaid, which could result in an estimated 25,000 residents being removed. At the same time, Bowser is proposing a package of business-friendly policies designed to spark more real estate development and construction, including tax incentives, streamlined zoning procedures and a pause on some environmental restrictions and requirements. The 13-member council is currently down one member; Ward 8 representative Trayon White, who faces federal bribery charges, was expelled by his peers in February. His seat will be filled in a July special election. Most of the remaining 12 D.C. Council members were in attendance at Tuesday's budget unveiling, with some asking pointed questions about Mayor Bowser's priorities. 'A first read of this proposed budget shows DC is walking away from our commitments to lower utility bills and reduce our largest sources of carbon output and pollution from our buildings,' Ward 6 Councilmember Charles Allen said in a statement. Bowser responded that a business-friendly environment was precisely her goal as she seeks to diversify the local economy away from federal jobs while preventing a talent exodus and without raising taxes. 'We're proud of the work we've done and the decisions we've made,' she said. 'We have to have a city that grows. We have to have more jobs, more businesses and more people.'
