Latest news with #firms
Yahoo
a day ago
- Business
- Yahoo
Do workforce development programs bridge the skills gap? Researchers say yes.
This story was originally published on HR Dive. To receive daily news and insights, subscribe to our free daily HR Dive newsletter. Workforce development programs — funded through public-private partnerships — appear to bridge the skills gap by helping companies to scale and expanding opportunities for less skilled workers, according to recent research published by the National Bureau of Economic Research. After training, organizations had longer employment growth and down-skilling in job posts, as compared to a matched control group, the researchers found. They looked at 18 states with grant subsidies for training. 'The evidence we present suggests these grants resolve a skills gap which previously prevented firms from operating at optimal scale,' the researchers wrote. 'The fact that labor inputs change post grant receipt means that these grants are not purely crowding out private sector funds.' Typically, the researchers wrote, these workforce development programs operate with explicit goals of upskilling the state's workforce, especially in transferable skills that could apply across employers. In practice, the grants are more likely to be used in competitive labor markets, particularly based on the concentration of hiring firms or market tightness. In addition, the grants seem to be disproportionately allocated to larger and higher-paying firms and labor markets, as well as companies seeking to hire more skilled workers, the researchers found. Grants aren't typically used to even out prospects across neighboring markets or target emerging markets, they wrote. After receiving a training grant, companies tended to experience higher employment levels and reduce education and work experience requirements, the researchers found. Grants appeared to help companies shift to a long-term higher growth trajectory, potentially resolving specific skill shortages that blocked growth or training investments, they wrote. Notably, most organizations' training plans targeted professional skills, such as leadership and process management, which opened up recruitment for lower skilled roles post-training. This could mean that firms needed managerial skills to accomplish institutional change, and once achieved, they could focus on productivity growth through low-wage expansion, the researchers wrote. Beyond that, training focused on production-related skills, particularly pivoting employees to work with automation technology. In these cases, training likely helped with worker retention or avoided layoffs, the researchers wrote. Sign in to access your portfolio
Bloomberg
2 days ago
- Business
- Bloomberg
Crypto Firms Making Moves in the Public Market
The renewed optimism in crypto has seen a new wave of firms such as Cantor Fitzgerald and BitGo making moves in the public market. Bloomberg's Anthony Hughes reports. (Source: Bloomberg)
Yahoo
3 days ago
- Business
- Yahoo
Bank of Canada says inflation expectations easing as businesses hold off passing on tariff price hikes
Short-term inflation expectations for Canadian firms eased during the second quarter, as slower demand offsets cost pressures caused by tariffs, according to the Bank of Canada surveys released on Monday. Firms' expectations for the annual inflation rate fell to just under three per cent in June, compared to 3.7 per cent in April. Still, 34 per cent of businesses expect their input prices to increase at a greater rate than the past year, while 25 per cent expect prices to increase at a lesser rate. Despite these rising costs, businesses do not expect their prices to increase at a faster rate, with selling prices expected to rise at a similar rate as in the last 12 months. 'Tariff-related cost increases are also putting upward pressure on firms' expected selling prices,' said the report. 'But competitive pressures and the current weakness in demand are limiting firms' ability to pass on these costs to consumers.' The majority of firms are absorbing tariff-related costs by reducing their margins and finding efficiencies, in an effort to preserve market share. The slower demand is driven by consumers putting off large purchases and cutting back on spending, with the consumer spending index falling for a second consecutive quarter. The three main reasons for this cutback in spending include economic uncertainty, elevated housing costs and high prices for many goods and services. The potential pass-through of tariff-related costs from businesses to consumers has been a particular focus for the Bank of Canada, which continues to monitor how inflation expectations are evolving in the Canadian economy. Core inflation has hovered around three per cent since April and was a factor in its decision to hold the policy rate at 2.75 per cent in June. Bank of Canada governor Tiff Macklem said in a speech last month that consumer prices will rise, unless tariffs are removed. Bank of Montreal senior economist Shelly Kaushik said this latest round of surveys does nothing to change market expectations that the central bank will hold its policy rate at its next decision on July 30. 'Tariffs continue to hang over business and consumer sentiment, even if uncertainty dissipated through the latter half of the second quarter,' she said in a note to clients. 'Altogether, there's not much here to push the Bank of Canada off the sidelines at next week's meeting.' Bank of Montreal senior economist Shelly Kaushik said this latest round of surveys does nothing to change market expectations that the central bank will hold its policy rate at its next decision on July 30. 'Tariffs continue to hang over business and consumer sentiment, even if uncertainty dissipated through the latter half of the second quarter,' she said, in a note to clients. 'Altogether, there's not much here to push the Bank of Canada off the sidelines at next week's meeting.' Inflation expectations for Canadian consumers, meanwhile, remain elevated, with consumers expecting the annual inflation rate to be over four per cent over the next year. In particular, Canadians expect large increases in motor vehicle prices over the next 12 months. These expectations are as high as after the COVID-19 pandemic when the industry faced major supply disruptions. Latest inflation numbers slam door 'shut' on Bank of Canada July rate cut, say economists Did the Bank of Canada cut rates too much and too fast? In the survey, businesses said they would only conduct layoffs if they experienced a sharp and prolonged decline in sales, but even then, layoffs are viewed 'as the last resort.' The majority of firms plan to keep their employment levels steady, while hiring intentions remain subdued as fewer firms than usual plan to increase their labour force. The unemployment rate in June declined for the first time since January to 6.9 per cent from its peak of seven per cent in May. Business investment remains focused on routine maintenance and maintaining existing capital, instead of boosting productive capacity. Fewer firms than last quarter expect tariffs to negatively impact their investment plans. The number of firms preparing for a recession has declined from 32 per cent to 28 per cent, but still remains above 2024 levels. Meanwhile, two-thirds of consumers expect the Canadian economy to fall into a recession this year. In April, Canada's GDP contracted by 0.1 per cent, after first-quarter growth came in above expectations due to a surge in exports ahead of tariff announcements. • Email: jgowling@
Wall Street Journal
3 days ago
- Business
- Wall Street Journal
Firms Cautious About Raising Prices, Bank of Canada Survey Says
Canadian companies face higher costs to purchase goods and services but are limited in raising consumer prices due to competitive pressures and weaker demand, according to quarterly surveys published Monday by the Bank of Canada. Overall, near-term inflation expectations among firms have eased after a sharp escalation in the previous quarter. More firms report a deteriorating sales outlook as the repercussions from chaotic U.S. trade policy continues to reverberate. Consumer confidence remains tepid, with households exhibiting increased caution about spending plans.
Bloomberg
17-07-2025
- Business
- Bloomberg
Full Return to Office Now Required by Majority of Fortune 100
Analyzing trends in leadership, company culture and the art of career building. In the waning days of the return-to-office debates of 2024, we laid out a theory as to why this topic remained so gripping for so many (plot! pacing! characters! tension!) even as the data on where work happens suggested it was time to move on. At that point, a third of US firms were fully back in the office, a quarter were fully flexible, and 43% offered hybrid schedules, according to Flex Index.
