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  • The haunting Masters meltdown that changed Rory McIlroy’s career | CNN

    The haunting Masters meltdown that changed Rory McIlroy’s career | CNN

    Editor’s Note: This story was originally published in April 2023.



    CNN
     — 

    Slumped on his club, head buried in his arm, Rory McIlroy looked on the verge of tears.

    The then-21-year-old had just watched his ball sink into the waters of Rae’s Creek at Augusta National and with it, his dream of winning The Masters, a dream that had looked so tantalizingly close mere hours earlier.

    As a four-time major winner and one of the most decorated names in the sport’s history, few players would turn down the chance to swap places with McIlroy heading into Augusta this week.

    Yet on Sunday afternoon of April 10, 2011, not a golfer in the world would have wished to be in the Northern Irishman’s shoes.

    A fresh-faced, mop-headed McIlroy had touched down in Georgia for the first major of the season with a reputation as the leading light of the next generation of stars.

    An excellent 2010 had marked his best season since turning pro three years earlier, highlighted by a first PGA Tour win at the Quail Hollow Championship and a crucial contribution to Team Europe’s triumph at the Ryder Cup.

    Yet despite a pair of impressive top-three finishes at the Open and PGA Championship respectively, a disappointing missed cut at The Masters – his first at a major – served as ominous foreshadowing.

    McIlroy shot 74 and 77 to fall four strokes short of the cut line at seven-over par, a performance that concerned him enough to take a brief sabbatical from competition.

    But one year on in 2011, any lingering Masters demons looked to have been exorcised as McIlroy flew round the Augusta fairways.

    Having opened with a bogey-free seven-under 65 – the first time he had ever shot in the 60s at the major – McIlroy pulled ahead from Spanish first round co-leader Alvaro Quirós with a second round 69.

    It sent him into the weekend holding a two-shot cushion over Australia’s Jason Day, with Tiger Woods a further stroke behind and back in the hunt for a 15th major after a surging second round 66.

    And yet the 21-year-old leader looked perfectly at ease with having a target on his back. Even after a tentative start to the third round, McIlroy rallied with three birdies across the closing six holes to stretch his lead to four strokes heading into Sunday.

    McIlroy drives from the 16th tee during his second round.

    The youngster was out on his own ahead of a bunched chasing pack comprising Day, Ángel Cabrera, K.J. Choi and Charl Schwartzel. After 54 holes, McIlroy had shot just three bogeys.

    “It’s a great position to be in … I’m finally feeling comfortable on this golf course,” McIlroy told reporters.

    “I’m not getting ahead of myself, I know how leads can dwindle away very quickly. I have to go out there, not take anything for granted and go out and play as hard as I’ve played the last three days. If I can do that, hopefully things will go my way.

    “We’ll see what happens tomorrow because four shots on this golf course isn’t that much.”

    McIlroy finished his third round with a four shot lead.

    The truth can hurt, and McIlroy was about to prove his assessment of Augusta to be true in the most excruciating way imaginable.

    His fourth bogey of the week arrived immediately. Having admitted to expecting some nerves at the first tee, McIlroy sparked a booming opening drive down the fairway, only to miss his putt from five feet.

    Three consecutive pars steadied the ship, but Schwartzel had the wind in his sails. A blistering birdie, par, eagle start had seen him draw level at the summit after his third hole.

    A subsequent bogey from the South African slowed his charge, as McIlroy clung onto a one-shot lead at the turn from Schwartzel, Cabrera, Choi, and a rampaging Woods, who shot five birdies and an eagle across the front nine to send Augusta into a frenzy.

    Despite his dwindling advantage and the raucous Tiger-mania din ahead of him, McIlroy had responded well to another bogey at the 5th hole, draining a brilliant 20-foot putt at the 7th to restore his lead.

    The fist pump that followed marked the high-water point of McIlroy’s round, as a sliding start accelerated into full-blown free-fall at the par-four 10th hole.

    His tee shot went careening into a tree, ricocheting to settle between the white cabins that separate the main course from the adjacent par-three course. It offered viewers a glimpse at a part of Augusta rarely seen on broadcast, followed by pictures of McIlroy anxiously peering out from behind a tree to track his follow-up shot.

    McIlroy watches his shot after his initial drive from the 10th tee put him close to Augusta's cabins.

    Though his initial escape was successful, yet another collision with a tree and a two-putt on the green saw a stunned McIlroy eventually tap in for a triple bogey. Having led the field one hole and seven shots earlier, he arrived at the 11th tee in seventh.

    By the time his tee drive at the 13th plopped into the creek, all thoughts of who might be the recipient of the green jacket had long-since switched away from the anguished youngster. It had taken him seven putts to navigate the previous two greens, as a bogey and a double bogey dropped him to five-under – the score he had held after just 11 holes of the tournament.

    Mercifully, the last five holes passed without major incident. A missed putt for birdie from five feet at the final hole summed up McIlroy’s day, though he was given a rousing reception as he left the green.

    Mere minutes earlier, the same crowd had erupted as Schwartzel sunk his fourth consecutive birdie to seal his first major title. After starting the day four shots adrift of McIlroy, the South African finished 10 shots ahead of him, and two ahead of second-placed Australian duo Jason Day and Adam Scott.

    McIlroy’s eight-over 80 marked the highest score of the round. Having headlined the leaderboard for most of the week, he finished tied-15th.

    McIroy was applauded off the 18th green by the Augusta crowd after finishing his final round.

    Tears would flow during a phone call with his parents the following morning, but at his press conference, McIlroy was upbeat.

    “I’m very disappointed at the minute, and I’m sure I will be for the next few days, but I’ll get over it,” he said.

    “I was leading this golf tournament with nine holes to go, and I just unraveled … It’s a Sunday at a major, what it can do.

    “This is my first experience at it, and hopefully the next time I’m in this position I’ll be able to handle it a little better. I didn’t handle it particularly well today obviously, but it was a character-building day … I’ll come out stronger for it.”

    Once again, McIlroy would be proven right.

    Just eight weeks later in June, McIlroy rampaged to an eight-shot victory at the US Open. Records tumbled in his wake at Congressional, as he shot a tournament record 16-under 268 to become the youngest major winner since Tiger Woods at The Masters in 1997.

    McIlroy celebrated a historic triumph at the US Open just two months after his Masters nightmare.

    The historic victory kickstarted a golden era for McIlroy. After coasting to another eight-shot win at the PGA Championship in 2012, McIlroy became only the third golfer since 1934 to win three majors by the age of 25 with triumph at the 2014 Open Championship.

    Before the year was out, he would add his fourth major title with another PGA Championship win.

    And much of it was owed to that fateful afternoon at Augusta. In an interview with the BBC in 2015, McIlroy dubbed it “the most important day” of his career.

    “If I had not had the whole unravelling, if I had just made a couple of bogeys coming down the stretch and lost by one, I would not have learned as much.

    “Luckily, it did not take me long to get into a position like that again when I was leading a major and I was able to get over the line quite comfortably. It was a huge learning curve for me and I needed it, and thankfully I have been able to move on to bigger and better things.

    “Looking back on what happened in 2011, it doesn’t seem as bad when you have four majors on your mantelpiece.”

    A two-stroke victory at Royal Liverpool saw McIlroy clinch the Open Championship in 2014.

    McIlroy’s contentment came with a caveat: it would be “unthinkable” if he did not win The Masters in his career.

    Yet as he prepares for his 15th appearance at Augusta National this week, a green jacket remains an elusive missing item from his wardrobe.

    Despite seven top-10 finishes in his past 10 Masters outings, the trophy remains the only thing separating McIlroy from joining the ranks of golf immortals to have completed golf’s career grand slam of all four majors in the modern era: Gene Sarazen, Ben Hogan, Gary Player, Jack Nicklaus, and Tiger Woods.

    The Masters is the only major title to elude McIlroy.

    A runner-up finish to Scottie Scheffler last year marked McIlroy’s best finish at Augusta, yet arguably 2011 remains the closest he has ever been to victory. A slow start in 2022 meant McIlroy had begun Sunday’s deciding round 10 shots adrift of the American, who teed off for his final hole with a five-shot lead despite McIlroy’s brilliant 64 finish.

    At 33 years old, time is still on his side. Though 2022 extended his major drought to eight years, it featured arguably his best golf since that golden season in 2014.

    And as McIlroy knows better than most, things can change quickly at Augusta National.

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  • X, formerly known as Twitter, may collect your biometric data and job history | CNN Business

    X, formerly known as Twitter, may collect your biometric data and job history | CNN Business



    CNN
     — 

    X, the social media platform formerly known as Twitter, said this week it may collect biometric and employment information from its users — expanding the range of personal information that account-holders may be exposing to the site.

    The disclosures came in an update to the company’s privacy policy, which added two sections related to the new data collection practice.

    “Based on your consent, we may collect and use your biometric information for safety, security, and identification purposes,” the policy read.

    In addition, under a new section labeled “job applications,” X said it may collect users’ employment and educational history.

    The company also said it could collect “employment preferences, skills and abilities, job search activity and engagement, and so on” in order to suggest potential job openings to users, to share that information with prospective third-party employers or to further target users with advertising.

    For X Premium users, the company will give an option to provide a government ID and a selfie image for verification purposes. The company may extract biometric data from both the government ID and the selfie image for matching purposes, the company told CNN in a statement.

    “This will additionally helps us tie, for those that choose, an account to a real person by processing their Government issued ID,” according to the company. “This will also help X fight impersonation attempts and make the platform more secure.”

    The changes mirror what many of X’s peers already routinely collect. But it represents an expansion of the types of information Twitter is interested in tracking. The policy adjustment arrives as owner Elon Musk seeks to turn the platform into an “everything app” that could include financial services and other features similar to the popular Chinese app WeChat.

    The change also happens as some regulatory initiatives around the world begin to require that social media companies verify their users’ ages. Many age-assurance services require that users upload copies of their government-issued identification or selfies that are then analyzed by artificial intelligence.

    On Thursday, however, a federal judge temporarily blocked an Arkansas law mandating age verification for social media platforms, just hours before it was due to take effect.

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  • Google is laying off hundreds in its recruitment division | CNN Business

    Google is laying off hundreds in its recruitment division | CNN Business


    New York
    CNN
     — 

    Google confirmed it will lay off hundreds of staff members who helped recruit and hire employees, as Silicon Valley continues its cost-cutting efforts.

    The latest cuts come after Google parent Alphabet in January eliminated 12,000 jobs, or about 6% of its workforce, across the company as it grappled with economic uncertainty that hit the company’s bottom line last year, especially its core advertising business.

    During Google’s July earnings call, CEO Sundar Pichai said the company was continuing to slow its “expense growth and pace of hiring.”

    “We continue to invest in top engineering and technical talent while also meaningfully slowing the pace of our overall hiring,” Google spokesperson Courtenay Mencini said in a statement Wednesday, adding that the workload for recruiters has declined as hiring slows. “To ensure we operate efficiently, we’ve made the hard decision to reduce the size of our recruiting team.”

    The layoffs were earlier reported by Semafor and CNBC.

    The cuts will affect a few hundred members of Google’s recruiting organization globally; most of the team will remain and continue hiring for critical roles such as top engineering talent, according to Google. The company did not specify the exact number of layoffs in the department.

    Google also said the recruiting cuts are not part of any wider layoffs, and that affected employees will be supported with severance offers and other benefits.

    Some Google recruiters for the company’s cloud, user experience, software engineering and other teams posted on LinkedIn, noting they had been affected by the layoffs.

    “My heart is heavy for everyone that was impacted alongside me, and I know better days are ahead for all of us as much as today doesn’t feel like it,” one affected Google recruiter wrote.

    Alphabet grew its workforce by more than 50,000 employees starting in 2021 as booming demand for its services during the pandemic boosted profits. But last year, the company’s core digital ad business slowed as fears of an economic downturn or a recession caused advertisers to pull back their spending.

    This year, the company has emphasized its efforts to cut costs as it works to stabilize its business. Google in July said its profits had grown nearly 15% year-over-year in the quarter ended in June, as the company’s Search and YouTube ads businesses continued to recover.

    As of the end of 2022, Alphabet had 190,234 employees, according to a filing with the Securities and Exchange Commission. By the end of June, its headcount had fallen to 181,798, according to its most recent filing.

    A wide range of other tech companies also made major layoffs this year as they attempt to cut costs amid economic challenges, including Meta, Microsoft and, more recently, T-Mobile.

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  • Expect more rate hikes from the Fed after the latest jobs report | CNN Business

    Expect more rate hikes from the Fed after the latest jobs report | CNN Business


    Washington, DC
    CNN
     — 

    An interest rate hike later this month was already in the cards for the Federal Reserve. But after the June jobs report, the timing of a second hike remains unclear.

    Job gains remain robust, wage growth is still going strong, and unemployment continues to hover near historic lows. That means the job market is still fueling demand in the economy, which the Fed has been trying to slow through rate hikes. And Fed officials have made it clear they think the central bank still has more work to do to bring down inflation, which is still running well above the 2% goal.

    Federal Reserve Bank of Chicago President Austan Goolsbee, a voting member of the Fed committee that decides interest rates, said in an interview Friday that he sees “a decent chance of further tightening down the pipeline” and that inflation “needs to come down more.”

    Other Fed officials have struck a similarly hawkish tone on inflation, hinting strongly at a hike in July.

    “I remain very concerned about whether inflation will return to target in a sustainable and timely way,” said Federal Reserve Bank of Dallas President Lorie Logan on Thursday during a meeting hosted by the Central Bank Research Association. “I think more restrictive monetary policy will be needed to achieve the Federal Open Market Committee’s goals of stable prices and maximum employment.”

    Fed officials voted last month to hold the key federal funds rate steady at a range of 5-5.25% to reassess the economy after a string of 10 consecutive rate hikes and to monitor the effects of bank stresses in the spring, according to minutes from that meeting released Wednesday.

    “We can take some time and assess and collect more information and then be able to act, knowing that we also communicated through our projections that we don’t think we’re done, based on what we know,” said New York Fed President John Williams Wednesday during a moderated discussion in New York. “And obviously we’re absolutely committed to achieving our 2% inflation goal.”

    And Fed Chair Jerome Powell himself has doubled down on the need for more rate increases in recent speeches, not ruling out back-to-back hikes, despite economic indicators showing slight progress on inflation.

    Financial markets are pricing in a more than a 90% chance of a rate hike later this month, according to the CME FedWatch Tool.

    The Fed wants to see the labor market slow down broadly, bringing it into “better balance,” as Powell has frequently described it. That means wage growth would need to cool consistently, monthly payroll growth would need to be close to a range of 70,000 and 100,000 — the smallest job gain needed to keep up with population growth — and unemployment would need to rise, according to economists. Job market conditions don’t resemble that just yet.

    “This is clearly a very tight labor market, so I expect the Fed to look at this data and say there is justification here for continued small rate increases because the labor market is not cooling enough,” Dave Gilbertson, labor economist at payroll software company UKG, told CNN.

    Labor costs are higher because of a persistent difficulty in hiring, weighing on labor-intensive service providers such as hospitals and restaurants, which has put upward pressure on consumer prices since businesses typically raise wages to address hiring challenges.

    Powell homed in on that dynamic in recent remarks, and research from top economists argues the Fed will have to slow the economy further to fully address the labor market’s stubborn impact on inflation. Whether that means a full-blown recession or a so-called soft landing remains to be seen, but some Fed officials are optimistic.

    “I feel like we are on a golden path of avoiding recession,” Goolsbee told CNBC Friday.

    And there has been some progress on bringing the job market back into better balance while inflation has come down. Job openings fell to 9.82 million in May, down from a peak of 12 million in March 2022, though they still greatly exceed the number of unemployed people seeking work. And June’s jobs total of 209,000 is still robust by historical standards.

    But Gilbertson said labor shortages have been largely driven by demographic shifts, which might keep the job market tight for the foreseeable future.

    Beyond the expected hike in July, the Fed is going to remain laser-focused on wage growth to inform its decision-making later in the year. Central bank officials will pay particular attention to the Employment Cost Index, which recently showed that pay gains picked up in the first three months of the year. The index for the second quarter will be released in late July — after the Fed meets.

    “The focus is on the path of wage inflation because of its pass-through to services inflation,” said Sonia Meskin, head of US Macro at BNY Mellon IM.

    The June jobs report showed that average hourly earnings growth was unchanged at 0.4% from the month before and also unchanged at 4.4% year-over-year — not a welcome development.

    Core inflation hasn’t decelerated as fast as the headline measure because of the tightness in the labor market. The Personal Consumption Expenditures price index, the Fed’s preferred inflation gauge, rose 3.8% in May from a year earlier, down from April’s 4.3% rise; while the core measure edged lower to 4.6% from 4.7% during the same period.

    Within the core measure, services inflation also remains sticky and Powell said in last month’s post-meeting news conference that “we see only the earliest signs of disinflation there” and that the services sector’s “largest cost would be wage cost.”

    The Fed’s strategy to address services inflation is simply by curbing demand through more rate hikes. So, in addition to the labor market, the Fed is highly attentive to consumer spending, which has cooled in the past several months, according to figures from the Commerce Department.

    Other headwinds are expected to weigh on consumers in the months ahead, such as the resumption of student loan payments and the Supreme Court blocking President Joe Biden’s student loan forgiveness program. Americans are also running down their savings accounts while racking up debt, so US consumers may need to start cutting back soon.

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  • Biden set to project a business-as-usual attitude after Trump indictment | CNN Politics

    Biden set to project a business-as-usual attitude after Trump indictment | CNN Politics



    CNN
     — 

    The last time former President Donald Trump was indicted, his successor left the White House the next day intent on going about his schedule without wading into the matter.

    As Trump is indicted a second time, President Joe Biden is planning to do the same thing – an intentional demonstration of calm and normalcy amid the continuing chaos of his predecessor.

    He’ll probably get asked about the indictment throughout the day as he leaves the White House to visit sites in North Carolina. But there is little to suggest he’ll weigh in on the substance of the case.

    That’s because he and his aides believe doing so would only lend grist to Trump’s claim that he’s the victim of a political “witch hunt.” Biden doesn’t want to be baited into providing Trump any fuel for his allegations, people familiar with his thinking said. And he remains firmly of the belief that sitting presidents should not comment on legal matters.

    Those dynamics – already in play when Trump was indicted in New York – are only amplified now that former president has been handed a federal indictment by Biden’s Justice Department. It’s a situation Biden and his team know they must handle carefully.

    “You’ll notice, I have never once – not one single time – suggested to the Justice Department what they should do or not do on whether to bring any charges or not bring any charges. I’m honest,” Biden said at a news conference Thursday.

    Biden and first lady Dr. Jill Biden are set to travel to North Carolina on Friday to promote his job training agenda and sign an executive order meant to help military spouses remain in the workforce. The official trip is the type of activity Biden is planning a lot of over the coming year, as he works to sell his accomplishments to a skeptical electorate.

    Aides know Biden’s dutiful, there-and-back stops at community colleges, union halls and construction sites aren’t likely to generate the same level of headlines as those about Trump’s legal peril.

    Yet perhaps more than the accomplishments themselves, Biden is hoping to project an air of competence and authority as a contrast to the chaos that has accompanied Trump for years. That comparison could hardly be starker this week.

    There is another additional goal with Friday’s trip – kicking off a push to flip a state that has gone Republican in the last three presidential elections.

    The last time Biden traveled to North Carolina, Rep. Wiley Nickel offered a bullish outlook on his state’s political potential during the flight to Durham on Air Force One.

    “I talked to him a number of times about it. We have been pushing with folks from all over on why North Carolina is a must win and why it’s a state that’s set to have a great outcome in November,” the Democrat told CNN this week.

    The pitch may have worked. The trip is one of Biden’s first trips outside Washington to sell his agenda since he announced his bid for reelection in April.

    He won’t be the only 2024 contender in the state. A two-hour drive west, Florida Gov. Ron DeSantis plans to speak at the North Carolina Republican Party convention in Greensboro. Former Vice President Mike Pence and Trump are also expected to address the gathering over the weekend.

    The convergence of candidates in the Tar Heel State is hardly a coincidence. After narrowly losing there to Trump in 2020, Biden’s campaign said in a strategy memo this spring the state is among their top targets next year as they look to expand the electoral map.

    On the Republican side, North Carolina’s 16 electoral votes would be essential for a pathway back to the White House. The last Democratic presidential candidate win there was Barack Obama in 2008.

    Yet the 1.3% margin Trump won by in 2020 was the smallest of any state, a demonstration – at least in Biden’s mind – that it is well within grasp in 2024. The state’s demographics are becoming more urban and diverse. Biden’s campaign has already purchased television ad time there.

    On Friday, Biden’s stops are considered official business, not campaign-related. But they reflect his team’s strategy of working to promote his accomplishments in places up for grabs in next year’s election.

    He plans to visit a community college in Rocky Mount to tout job training programs before heading to Fort Liberty – recently renamed from Fort Bragg, removing the moniker of a Confederate general – to sign an executive order meant to help military spouses remain in the workforce.

    “We’re asking agencies to make it easier for spouses employed by the federal government to take administrative leave, telework and move offices. We’re creating resources to support entrepreneurs and the executive order helps agencies and companies retain military spouses through telework or when they move abroad,” said first lady Dr. Jill Biden, who’s accompanying her husband in North Carolina on Friday.

    Both stops will put a spotlight on the types of agenda items the president plans to use as the basis for his reelection argument next year, centering on job creation and the middle class. Biden has focused heavily on job training for those without college degrees as part of his effort to revive American manufacturing.

    Despite a strong job market and rising wages, however, Biden has struggled to convince Americans of his economic agenda, according to polls. The three Republican candidates speaking in Greensboro this weekend will undoubtedly hammer the president on issues like inflation.

    Events like the stops in Rocky Mount and Fort Liberty on Friday are meant to explain to Americans what Biden has done so far, an approach he’s expected to continue pursuing in the coming year as Republicans engage in a primary battle.

    Nash Community College, where the president is visiting, is part of a coalition of historically black colleges that has received around $24 million from Biden’s American Rescue Plan for training on clean energy careers, according to the White House.

    The executive order he’ll sign later at Fort Liberty is meant to allow military spouses to remain in the workforce through greater employer flexibility. The issue has been a main agenda item for the first lady.

    It wasn’t clear whether Biden would address the renaming of the base, which became official last week. Many Republicans opposed stripping the names of Confederate generals from bases, an effort that began under Biden. Trump has likened the moves to erasing American history.

    Biden’s aides have acknowledged that simply selling the president’s agenda isn’t likely to be enough to get him reelected. They have also worked to highlight what they say are extreme Republican positions on issues like education and abortion.

    In this, too, North Carolina also offers a backdrop for areas Democrats believe they have an upper hand. North Carolina Republicans passed a restrictive new law last month that would outlaw most abortions after 12 weeks, using their legislative supermajority to override a veto from Democratic Gov. Roy Cooper.

    There are already plans by Biden’s campaign to focus on the ban as the campaign works to make inroads in the state.

    Nickel said Republicans’ abortion platform was the reason he was elected last year.

    “We focused almost exclusively two things. Rejecting far-right extremism and standing up for a woman’s right to choose. And that’s what folks understood our campaign was about,” he said.

    For Biden, whose time as a candidate will be carefully managed as he works to confront still-significant headwinds, Nickel had this piece of advice for winning in North Carolina: “I think he needs to show up a lot.”

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  • Employers are preparing for a recession, but that doesn’t always mean layoffs | CNN Business

    Employers are preparing for a recession, but that doesn’t always mean layoffs | CNN Business


    Minneapolis
    CNN
     — 

    Areas of the US economy have started to crack under the weight of persistently high inflation and a string of 10 consecutive rate hikes from the Federal Reserve.

    But despite all that, the labor market has kept humming right along. And that’s largely expected to be the case, again, in Friday’s monthly jobs report from the Bureau of Labor Statistics.

    Economists are forecasting a net gain of 190,000 jobs for May, according to Refinitiv. While that would mark a significant retreat from April’s surprisingly strong 253,000 jobs added, it would land slightly above the average monthly gains seen during the strong labor market in the years leading up to the pandemic.

    Economists are also expecting the unemployment rate to tick back up to 3.5%. The US jobless rate has hovered at decade-lows for more than a year, with the current 3.4% rate matching a 53-year low hit in January.

    Private sector employment increased by 278,000 jobs in May, according to ADP’s monthly National Employment Report, frequently seen as a proxy for the government’s official number. That’s significantly higher than estimates of 170,000 jobs added but slightly below the previous month’s revised total of 291,000.

    Additional labor market data released Thursday showed that initial weekly jobless claims for the week ended May 27 totaled 232,000, almost no change from the previous week’s revised total of 230,000 applications.

    “In the last few months, the job market has continued to defy gravity, adding a steady clip of jobs and holding unemployment at historically low levels despite a backdrop of rising interest rates, banking turmoil, tech layoffs and debt ceiling negotiations,” Daniel Zhao, lead economist at employment review and search site Glassdoor, wrote in a note this week. “After a healthy April jobs report, May is likely to repeat with an equally strong performance.”

    Consumer spending and the labor market — two ares of strength in the economy — have, in a way, continued to feed on themselves.

    Last week, a Commerce Department report showed that not only did the Fed’s preferred inflation gauge heat up in April but so did consumer spending. Economists largely attributed consumers’ resilience to the healthy labor market as well as ample dry powder stockpiled from home refinances and from the temporary pause in student loan payments.

    In turn, that’s kept businesses busy.

    “With demand for goods and services holding up, employers who have been cautious and have been very nervous about over-hiring are — when push comes to shove — having to keep hiring just to keep pace with business activity,” Julia Pollak, chief economist for online employment marketplace ZipRecruiter, told CNN. “They’re very worried about a recession later this year, but they need to keep hiring today to provide the pizzas that people are demanding and to prevent flights being canceled.”

    She added: “Companies have also learned the hard way how costly staffing shortages can be.”

    But labor shortages are becoming far less acute: This past Memorial Day weekend, 1% of flights were canceled, Pollak said, noting that cancellations were fivefold higher a year before.

    “And while that’s a good news story — the end of shortages and disruptions during the pandemic is good for most consumers and good for businesses — it does come at some cost, which is a measurable decline in worker and job seeker leverage,” she said.

    Labor turnover data released Wednesday showed that the US employment market remained tight in April.

    Job openings bounced up to 10.1 million positions, bucking economists’ predictions for a fourth-consecutive monthly decline, according to the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey report. The jump brought the ratio of vacancies to unemployed to almost 1.8, which is well above a range of 1.0 to 1.2 that is considered consistent with a balanced labor market, according to Michael Feroli, JPMorgan chief US economist.

    Although the April JOLTS data showed that fewer people were voluntarily quitting their jobs, the amount of layoffs and discharges dropped during the month, suggesting that employers are continuing to hoard workers, noted economist Matthew Martin of Oxford Economics.

    While monthly job gains haven’t tailed off as much as anticipated to this point, there is a notable slowdown that’s occurred from the blockbuster job gains of the past three years.

    But whether the softening is a sign of a return to pre-pandemic form or perhaps of a downswing into a downturn, remains to be seen.

    Some of the traditional recession indicators have been flashing red. Layoff announcements have quadrupled so far this year to 417,500, which — excluding 2020 — is the highest January to May total since 2009, according to a report from Challenger, Gray & Christmas released Thursday. Falling consumer confidence, monthly declines in the Conference Board’s Leading Economic Index, and drops in temporary help employment are also signaling that a downturn is just ahead. However, that long-predicted recession isn’t here just yet.

    “We were in such an unusual place during the pandemic with some of those indicators at completely extraordinary heights that they have experienced extraordinary declines,” Pollak said. “But those declines were just a return to normal, not a contraction, and it’s not a recession.”

    The government’s May jobs report is scheduled for Friday at 8:30 a.m. ET.

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  • The Fed could easily drive Black unemployment much higher than the overall jobless rate | CNN Business

    The Fed could easily drive Black unemployment much higher than the overall jobless rate | CNN Business


    New York
    CNN
     — 

    Millions of jobs could be on the chopping block this year, as the Federal Reserve continues its rate-hiking campaign to tame inflation. But the effects of that action likely won’t reverberate evenly across the economy.

    The Fed has seen some success: Inflation has cooled for eighth consecutive months, according to the February Consumer Price Index. The Producer Price Index shows a dramatic drop in wholesale prices in February. And the Fed’s favored inflation gauge, the Personal Consumption Expenditures price index, has also started to moderate.

    But the job market has proved to be a formidable force, humming steadily in the face of climbing rates meant to slow its growth. After adding more than half a million jobs in January, the US economy then added 311,000 jobs in February, with an unemployment rate of 3.6% — just above a half-century low — according to the Bureau of Labor Statistics.

    However, the jobless rate isn’t expected to be that low for long.

    At its most recent policy-making meeting, the Fed released projections for the year ahead that showed unemployment could jump to 4.5%, representing another 1.5 million job losses, by the end of the year.

    While that’s a small improvement from the central bank’s previous 4.6% jobless rate estimate, economists say it’s possible the unemployment rate could rise above the Fed’s expectations. Moreover, they say that historically disadvantaged groups could be disproportionately affected by the central bank’s stringent monetary policy.

    While some groups often sidelined in the job market have seen benefits from this hot job market — women have seen a faster pace of job gains than men in recent months, for example — others, including Black women and Latino men, have seen slower recoveries in jobless rates since the onset of the Covid pandemic.

    Recession fears gained traction last month when the collapse of Silicon Valley Bank sent markets wobbling, raising concerns about the economy’s ability to handle more stress. Goldman Sachs revised its estimate of the United States entering a recession over the next 12 months to a 35% chance, up from its estimate of a 25% chance before the banking sector turmoil.

    That’s of particular concern to certain demographic groups: Jobless rates for Black and Hispanic Americans often increase by more than those of their White counterparts during recessions, said Rakesh Kochhar, a senior researcher focusing on demographics and social trends at the Pew Research Center.

    History makes that discrepancy clear.

    A Pew Research Center report comparing two recessions in recent decades shows how Black and Hispanic Americans experience disproportionate effects on their jobless rates during periods of economic downturn. From the second quarter of 2007 to the second quarter of 2009, during the Great Recession, the unemployment rate rose 6.5 percentage points for Black Americans. The Hispanic unemployment rate climbed 6.3 percentage points. For White workers, it increased 4 percentage points.

    And from the first quarter of 1990 to the first quarter of 1991, the unemployment rate climbed 1.4 percentage points for Black Americans and 2.1 percentage points for Hispanic Americans. The White unemployment rate rose 1.3 percentage points.

    Economists say it’s hard to guess the trajectory of the unemployment rate this year, noting it could very well exceed the Fed’s estimate.

    “There’s just tons of momentum, and once you slow the economy enough to get the unemployment rate moving up, it’s very hard to sort of turn that cruise ship back around,” said Josh Bivens, research director and chief economist at the Economic Policy Institute.

    As such, the Fed’s tightening efforts could easily drive the Black unemployment rate much higher than the overall jobless rate, said William Spriggs, an economics professor at Howard University and chief economist to the AFL-CIO.

    “If the Fed continues to use unemployment as its measure of labor force slack, and thinks they want a 4.5% unemployment rate — to make that happen, the Fed would have to induce net job loss in the labor market,” Spriggs told CNN in an email. “If we go through two months of negative job growth, all bets are off. The Black unemployment rate will easily get to 9% in that scenario.”

    One other likely consequence of growing unemployment is slowing wage growth, Bivens said.

    Like rising unemployment, stunted wage growth tends to hit marginalized groups harder. A 2021 Economic Policy Institute report shows that a 1 percentage point increase in overall unemployment correlates with about 0.5% slower wage growth for White median hourly wages. Wage growth falls by roughly 0.8% for Black median hourly wages.

    “A lot of people have this idea that in a recession, if unemployment rises by a couple of percentage points, as long as you’re not one of those unlucky people to lose the job, you’ve dodged the bullet,” Bivens said. “And that’s not true at all.”

    Still, a robust labor market isn’t a permanent solution to bridging employment disparities, even if the Fed does keep rates lower, says Wendy Edelberg, director of the Hamilton Project and a senior fellow in economic studies at the Brookings Institution.

    The job market’s recent strength is unsustainable, she said. The US economy needs about 75,000 net job gains a month to keep stable and is currently adding about 350,000 net job gains a month on average, according to Edelberg.

    “[The Fed is] right to be confident that one of the things that’s going to have to happen to get inflation back down to a normal, stable level is to get job growth to a normal, sustainable level,” Edelberg said. “But if the Fed’s actions resulted in a slower labor market, then inflation stayed high — that would be a disaster.”

    The March jobs report from the Department of Labor, due to be released Friday at 8:30 a.m., is expected to show the US economy gained 240,000 positions last month. ADP’s private-sector payroll report, generally seen by investors as a proxy for the trajectory of Friday’s number, fell short of expectations, with just 145,000 jobs added. Economists had expected private hiring would rise by 200,000 positions last month.

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  • New Mexico Game and Fish is now hiring ‘professional bear huggers’ | CNN

    New Mexico Game and Fish is now hiring ‘professional bear huggers’ | CNN



    CNN
     — 

    Bear lovers rejoice: The New Mexico Department of Game and Fish is hiring for “professional bear huggers.”

    The department posted an adorable job listing on Facebook on Monday, featuring precious snaps of conservation officers cuddling baby bears.

    Unfortunately, a love of bears is not the only qualification you’ll need to become a conservation officer. The job listing with the formal title of the position specifies candidates should have a bachelor’s degree in “biological sciences, police science or law enforcement, natural resources conservation, ecology, or related fields.”

    Interested applicants “must have ability to hike in strenuous conditions, have the courage to crawl into a bear den, and have the trust in your coworkers to keep you safe during the process,” wrote the department.

    The photos are from a research project in Northern New Mexico, according to the Facebook post. They added they “do not recommend crawling into bear dens” and “all bears were handled safely under supervision.”

    “Not all law enforcement field work is this glamorous, but we would love for you to join the team where you can have the experience of a lifetime,” added the department.

    Applications for the next class of conservation officer trainees are open until March 30, according to the post.

    The job duties include a lot more than just bear-hugging, according to the job listing. Each conservation officer is responsible for “enforcing the game and fish laws” and also “educates the public about wildlife and wildlife management, conducts wildlife surveys, captures ‘problem animals,’ investigates wildlife damage to crops and property, assists in wildlife relocations and helps to develop new regulations.”

    Black bears are New Mexico’s state animal. Estimates place the population at around 6,000 bears, according to a publication from the New Mexico Department of Game and Fish.

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  • Another education fight over DEI emerges, this time at a conservative campus in Texas | CNN

    Another education fight over DEI emerges, this time at a conservative campus in Texas | CNN


    Lubbock, Texas
    CNN
     — 

    One of the largest universities in Texas is now reviewing its hiring procedures after one department closely scrutinized candidates over their knowledge of diversity, equity and inclusion, more commonly known as DEI.

    “We could see that this could be viewed as possibly exclusionary,” Texas Tech President Lawrence Schovanec said in an interview with CNN. “And so we wanted to step back and review the whole process.”

    The biology department at Texas Tech University – set in deeply conservative West Texas – asked faculty candidates in 2021 to submit statements on their commitment to DEI. Some candidates received negative notes if their answers were deemed insufficient, such as not knowing the difference between “equality” and “equity.”

    The process, which came to light earlier this month, prompted swift conservative backlash against the storied institution, with critics decrying such DEI screenings as litmus tests that discriminate based on ideology. The term DEI has become the latest target among conservative politicians in the recent era of racial reckoning, echoing the heated debates over critical race theory in schools.

    DEI programs have become commonplace in the worlds of business, government, and education to promote multiculturalism and to encourage success for people of all races and backgrounds. But they’ve also become a focal point of those who describe them as another example of extreme political correctness.

    In Florida, Republican Gov. Ron DeSantis said earlier this month he intends to ban state universities from spending money on DEI initiatives. “We want education, not indoctrination,” he said at an event in Jacksonville.

    And in Texas, Republican Gov. Greg Abbott this month issued a memo to state agencies and universities asserting that using DEI as a screening tool is illegal. “When a state agency adjusts its employment practices based on factors other than merit, it is not following the law. Rebranding this employment discrimination as ‘DEI’ does not make the practice any less illegal,” the memo said.

    Schovanec said the school’s lawyers insist the biology department’s actions were not illegal, but the university is ending efforts that use DEI as a screening tool for faculty while it undergoes a review of its hiring practices campuswide.

    A group called the National Association of Scholars first uncovered the situation at Texas Tech by obtaining DEI-specific notes and documents from the biology department’s hiring process through open records requests. The group published the roughly 100 documents online, along with an op-ed for the Wall Street Journal, called “How ‘Diversity’ Policing Fails Science.”

    The DEI portion was just one component of screening candidates in the biology department, according to the university. Each applicant was asked to submit a curriculum vitae, three representative publications, separate statements of research and teaching interests, three potential referees, and “a diversity statement that addresses any past contributions to diversity, equity, and inclusion and outlines plans and actions for advancing DEI” at Texas Tech. Finalists were also interviewed by a DEI committee.

    According to the documents, candidates were flagged for being “reluctant” to answer questions about DEI or not having a “good grasp” of the concept. Under the “weaknesses” for one candidate, it was noted the candidate repeatedly used the pronoun “he” when talking about professors. The same candidate was “red-flagged” and hiring committee members wrote they had “reservations about sending him into a large, diverse undergrad classroom with his current understanding and strategies.”

    Another candidate’s weakness was listed as: “Mentioned that DEI is not an issue because he respects his students and treats them equally.”

    While the names of the candidates in the documents were redacted, Texas Tech University confirmed to CNN that some of the candidates featured in the documents were hired and not all of the positions have been filled yet.

    Steve Balch is a former Texas Tech professor and founder of the National Association of Scholars, which has done considerable research on DEI efforts in universities to illustrate what it sees as an impediment to academic freedom.

    “My quarrel isn’t with people who think diversity, equity and inclusion are good things,” he told CNN. “My argument and the argument of the NAS is turning them into dogma and then using them to vet faculty members, graduate students, undergraduate students – creating aversive environment in which you feel you have to swear fealty to a particular creed. I think that’s wrong.”

    The issue at Texas Tech also came up in a state Senate hearing on February 8. Sen. Joan Huffman questioned Texas Tech’s chancellor Tedd Mitchell, saying she was “concerned and confused” over the incident.

    “I do not believe in litmus tests of any type,” Mitchell said. “It’s no more appropriate to ask somebody about their position on DEI than it is to ask them if they’re a Christian or a Muslim. When we find out something like that has occurred, we stop it.”

    Schovanec recognizes that Tech is in conservative part of a conservative state with many key conservative stakeholders, donors, and legislators involved in school funding.

    “We have to be pragmatic in acknowledging issues that are being raised,” he said. “Our legislators are responding to their constituents. And in this country right now, education has many challenges.”

    He stressed the importance of diversity at the school, which has its own DEI division. According to Texas Tech, 46% of this year’s incoming class are students of color, and 30% of faculty are faculty of color.

    “So we’re totally committed to a diverse campus community, but those hiring practices could present the perception that certain candidates would be excluded based on their ideological views, as opposed to the real excellence related to that discipline and the ability to address the priorities of our mission here,” he said.

    Schovanec said the school needs more diverse faculty, and he acknowledged that some prospective candidates might see the school’s recent move to end DEI screenings and question Tech’s commitment to diversity.

    “Faculty and students have to judge us by our actions. Do we support them? Do we create an environment here where they feel they belong and this is a place where they can thrive? That’s a much bigger issue than certain elements of a hiring process,” he said “But that is a challenge that we have.”

    Paulette Granberry Russell, president of the National Association of Diversity Officers in Higher Education, said the political firestorm over the incident at Texas Tech is simply an “attempt to fuel the base” among those who don’t agree with longstanding efforts to increase diversity.

    She’s concerned that DEI will follow the same path as critical race theory, or CRT, and become a term that’s twisted and misrepresented for political purposes.

    “It’s demonizing efforts, not only within higher education, but I think within this country to create a more equitable, just United States,” she said. “On some levels it’s misappropriating the work that is being done and using it as a basis for saying we’re discriminating against others.”

    Granberry Russell said she wants people to understand the nuance of DEI and that it’s designed to increase opportunities for people who have been historically marginalized or not well represented in higher education or the workforce.

    “My hope would be that as we begin to think more broadly about inclusion, that people will better understand this is not a situation where some are intending to take access away, but to expand access,” she said.

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  • ‘A recipe for disaster.’ Deadly encounter in Memphis comes at a critical time in American policing | CNN

    ‘A recipe for disaster.’ Deadly encounter in Memphis comes at a critical time in American policing | CNN



    CNN
     — 

    Since the night Tyre Nichols was kicked, pepper-sprayed, punched and struck with a baton by Memphis police officers, six cops have been fired and five of them charged with murder. Seven others face internal disciplinary charges.

    Nichols died three days after the January 7 traffic stop and subsequent fatal encounter captured on video and principally involving five officers with two to six years on the job.

    The death of the 29-year-old Black man comes at a critical juncture in American law enforcement, as departments across the country – including the Memphis PD – struggle to recruit qualified officers and fill shifts, lure candidates with signing bonuses worth thousands of dollars, and at times curtail standards and training in a desperate bid to strengthen patrols amid rising gun violence, according to law enforcement experts.

    “That is a recipe for disaster,” said Kenneth Corey, a retired NYPD chief who once ran the training division. “We’ve seen it happen before. You couldn’t fill seats. You lowered standards. And now you’ve got scandal and use of force. And when you look at the individuals involved you say, we never would have hired this guy once upon a time.”

    In the weeks since authorities released video of Nichols’ brutal beating, little information has come out about the recruitment and training of the five former officers facing murder charges – Tadarrius Bean, Demetrius Haley, Justin Smith, Emmitt Martin III and Desmond Mills Jr.

    The five men were part of a now disbanded specialized street crime unit formed just over a year ago as part of the city’s strategy to combat rising violence. The SCORPION unit focused on homicides, robberies, assaults and other felonies.

    Chuck Wexler, the executive director of the Police Executive Research Forum, said Nichols’ killing raises questions about “how those officers were trained and supervised and selected.”

    “Over time you always want to look at the backgrounds of those officers – that will be important. The hiring process – that will be important,” he said. “In this case we don’t know enough yet.”

    Bean, 24, was commissioned as an officer in January 2021, personnel records show. His attorney has not responded to CNN’s requests for comment.

    Haley, 30, was commissioned as an officer in January 2021, the records show. He is a former correctional officer. His attorney has not respond to requests for comment.

    Martin, 30, joined the department in 2018, according to the records. He will plead not guilty, according to his attorney, William Massey, who said: “No one out there that night intended for Tyre Nichols to die.”

    Mills, 32, a former jailer in Mississippi and Tennessee, joined the department as a recruit in March 2017, the records show. He, too, plans to plea not guilty, said Blake Ballin, his attorney, who described Mills as “devastated” and “remorseful.”

    Memphis Police Chief Cerelyn “CJ” Davis told CNN last month that Nichols’ death was indicative of “a gap somewhere” in the specialized street crime unit.

    “We train and we retrain these officers, just like specialized units around the country,” she said. “These officers working in specialized units, you always need to make sure that the supervision is there and present.”

    On January 28, one day after the release of the video, Memphis PD announced that it had permanently disbanded the unit.

    Davis said the department was unaware of any evidence the unit had previously engaged in misconduct but added that an investigation is ongoing.

    The five former Memphis officers charged in Nichols’ death also are accused of assaulting another young Black man just three days before the fatal police encounter, according to a federal lawsuit filed Tuesday.

    The suit accuses the city of failing to prevent or address an alleged pattern of policing abuses by the SCORPION unit, which it claims operated like a “gang of vigilantes” without adequate training or supervision. Police declined to comment on the lawsuit, citing ongoing litigation.

    The Shelby County District Attorney’s office in Memphis said it will review all cases involving the five officers charged with Nichols’ death.

    Davis, speaking at a Memphis city council meeting Tuesday, said training was not an issue with the unit. Instead, she said, “egos” and a “wolf pack mentality” contributed to the killing.

    “Culture is not something that changes overnight. You know, there is a saying in law enforcement that ‘culture eats policy for lunch.’ We don’t want to just have good policies because policies can be navigated around,” she said. “We want to ensure that we have the right people in place to ensure our culture is evolving.”

    Memphis Police Chief Cerelyn

    In this still from video released by the City of Memphis, officers from the Memphis Police Department beat Tyre Nichols on a street corner.

    These are the moments that led to Tyre Nichols’ death

    Nichols’ death comes as many police departments in the US have been reeling from an exodus of officers due to resignations and retirements and scrambling to attract new recruits. The staffing crisis has been exacerbated by high-profile cases such as the 2020 murder of George Floyd that have put policing under scrutiny and made it a frequent target of protests and moves to decrease funding.

    “The pandemic impacted recruiting and then George Floyd’s murder really was a moment in time that made prospective police applicants think twice – Is this a job for me?” Wexler said.

    “And now, unfortunately, with the Tyre Nichols killing you simply compounded what was already arguably a challenging environment to hire a police officer.”

    Wexler’s group, in a 2021 survey, found that retirements had risen 45% that year since 2019. Resignations had jumped 18% in that two-year period.

    The number of officers on the Memphis Police Department dropped by more than 22% since 2011 – from 2,449 in September 2011 to a low of 1,895 officers last December, according to the Memphis Data Hub website.

    The department was budgeted for 2,300 officers last year, CNN affiliate WMC reported. In 2015, nearly 200 Memphis police officers resigned over changes to pension and benefit plans, according to WMC.

    “It had gotten to the point that we were having sergeants as acting lieutenants,” said Alvin Davis, a former Memphis police lieutenant and recruiter who retired last year. “Hundreds of people did it over a period of time because we didn’t have enough supervisors. So many people were running out the door.”

    In this still from video released by the City of Memphis, officers stand around as Tyre Nichols leans up against a car after being detained and beaten on January 7.

    Like other departments around the country, the Memphis PD in 2021 began offering $15,000 signing bonuses and $10,000 in relocation assistance. Additionally, requirements on college credits, military experience and employment history have been loosened, WMC reported.

    “Departments around the country … are offering between $25,000 and $30,000 signing bonuses,” Wexler said. “You’ve got a national shortage of applicants which has forced police departments to do unprecedented things like offering signing bonuses and, in some cases, modifying the standards for hiring.”

    Greg Umbach, associate professor at John Jay College of Criminal Justice, said there is a direct correlation between higher standards for new recruits and lower incidents of bad behavior.

    “We know from decades of research that the number of cops meeting higher qualifications, most notably a college degree, matters far more than anything else, for the number of civilian complaints a department gets,” Umbach said.

    And if the pipeline of good officers is low, Umbach said, then so is the quality of supervision – a reality that has plagued the Memphis Police Department and other agencies nationwide.

    “Any police sergeant watching that video, their first thought is, ‘My God, where was the supervision and why did they think this was okay,’” Umbach said.

    The Memphis Police Department urges recruits to

    Davis, the former lieutenant and recruiter, asked a similar question about supervision.

    “If you pepper-spray someone or you tase someone, you’re supposed to call a supervisor,” said Davis, who spent 22 years on the job. “That’s just policy. Why they didn’t, I can’t say.”

    But, Davis said, the behavior of the former officers who beat Nichols did not entirely surprise him – given the curtailed training and standards, shortage of skilled supervisors and growing number of officers lured by monetary incentives and without the requisite experience being deployed on the city’s streets.

    “The standards kept dropping and dropping to bring people in,” said Davis, who was in charge of recruiting. “And then they start throwing money out to lure people in and this is what you got.”

    He added, “Just about everybody who came, the first thing they asked us was about was the money. How long did they have to stay on the job? Do I have to do a year? Two years? Nobody is trying to make a career out of it. It was the money.”

    The Memphis PD did not immediately respond to a request for comment on training, recruitment and staffing issues.

    “It’s not the job that it used to be, when you felt like you’re the ‘best in blue’ and you have your head up because you really feel like you accomplished something,” said Davis, referring to the Memphis Police Department’s longtime “Join the best in blue” recruitment campaign. “It’s not that kind of job anymore.”

    It’s too early to tell exactly what factors contributed to the behavior of the former officers who beat Nichols to death on January 7, law enforcement experts said.

    Wexler and others pointed to previous policing scandals that were preceded by periods of hiring under lax standards and curtailed training.

    In the late 1980s, nearly 10% of the officers in the Miami Police Department were suspended or fired after a corruption scandal involving rogue officers who became known as the “River Cops.” Nearly 20 former officers were convicted on various state and federal charges, including using their police powers as a racketeering enterprise to commit murder.

    Atlanta police officers keep an eye on marchers during a rally on January 28 protesting the fatal police assault of Tyre Nichols.

    In 1990, an investigation into the hiring and training of police officers in Washington, DC by the General Accounting Office found that a hiring rush during the previous decade – prompted by a wave of drug and gun violence – led to cutting corners on recruiting, background checks and training.

    Eight years later, another report by the GOA, the investigative arm of Congress, examined drug-related police corruption and said “rapid recruitment initiatives” coupled with loosening education requirements and inadequate training and supervision “might have permitted the hiring of recruits who might not otherwise have been hired.”

    “These are all lessons of history,” said Corey, the former NYPD chief. “You have to make the profession attractive to the type of people you want to recruit. It’s not that people have lost interest in policing. They just don’t see it as a viable occupation.”

    He added, “What we ask of our cops is that they think like lawyers, speak like psychologists, and perform like athletes but we pay them as common laborers. A starting officer in New York City makes $42,000 a year, which means about $20 dollars an hour. It also means that at McDonald’s they could be making $15 dollars an hour with none of the stress, trauma or risk.”

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  • Why did we get a monster jobs report if the economy is slowing? | CNN Business

    Why did we get a monster jobs report if the economy is slowing? | CNN Business


    Minneapolis
    CNN
     — 

    The economy wasn’t supposed to add half a million jobs in January.

    In fact, a consensus poll of 81 economists expected job gains to land at around 185,000, according to Refinitiv. After 11 months of aggressive rate hikes from the Federal Reserve, the experts were naturally expecting the economy’s job gains to slow as higher borrowing costs percolated through the economy, slowing investment and growth and pushing companies to pull back on spending and hiring.

    And yet, even though it seemed impossible, the labor market is somehow getting tighter, said Rucha Vankudre, senior economist at business analytics firm Lightcast.

    “I think pretty much all the labor economists in the country this morning are shocked,” Vankudre said Friday during a webinar after the jobs report was released. I think the question on everyone’s mind is, ‘How can the labor market keep getting stronger and stronger, and how can this keep happening while at the same time we are seeing prices come down?’”

    Instead of lending credence to what was a bubbling belief in a soft landing, Friday’s jobs report only seems to beg more questions about not only the state of the economy, but also of the Federal Reserve’s attempts to hammer down high inflation.

    On Wednesday, the Fed concluded its first policymaking meeting of 2023 by green-lighting a quarter-point interest rate hike — the smallest since March — as a reflection of progress in its fight to lower inflation.

    The more moderate increase had been long telegraphed and came despite a hotter-than-expected December Job Openings and Labor Turnover Survey (JOLTS) report, which showed job openings grew to more than 11 million, or 1.9 available jobs for every job seeker.

    Fed officials remain laser focused on wages and inflation, and are seeing some progress there, said Elizabeth Crofoot, Lightcast senior economist. Fluctuations are to be expected in any economic data, and it’s (always) important to remember that “one month does not make a trend,” especially for January data, she said.

    “I think [Fed officials] are going to say, ‘Let’s continue to keep our eye on the data,’ and they’re going to hold steady until they see that inflation rate come down,” Crofoot said.

    The January jobs report shouldn’t trigger a wholesale change of what Fed members are thinking or what they were planning on doing before this report, Sarah House, senior economist at Wells Fargo, told CNN.

    “I think it suggests that the labor market remains still very strong, and there’s still a lot of wage pressures coming from that strong labor market that the Fed needs to contend with if it’s going to get inflation back to 2% on a sustained basis,” House said, noting the Fed’s target inflation rate.

    The Covid pandemic was a tremendous shock to global economies, and the US labor force is still showing the effects of historic employment losses, sudden shifts in consumer behavior, discombobulated supply chains, and efforts to return to a state of normality.

    The employment recovery since 2021 has been historically robust, with the monthly job gains larger than anything seen on record.

    January’s jobs report came with added complexity, because it included annual updates to populations estimates and revisions to employer survey data.

    “Now we know both [2021 and 2022] had faster job growth than we previously realized,” said University of Michigan economists Betsey Stevenson and Benny Doctor in a statement Friday. “The patterns remain the same: Job growth accelerated in the second half of 2021 before slowing in the first half of 2022 and slowing further in the second half of 2022.”

    The January reports also bring with them “seasonal noise,” said Joe Brusuelas, principal and chief economist for RSM US.

    “I’m advising policymakers and clients to ignore the topline number [of 517,000],” he said, noting it’s likely a function of seasonal adjustments and a reflection of swings in hiring activity and traditional cutbacks that take place from mid-December to mid-January.

    “That being said, even if a downward revision takes away 200,000 or so off the top, you still are sitting at around 300,000,” he added.

    “The job market is clearly too robust at this time to re-establish price stability; therefore, the Federal Reserve is going to have to not only hike by 25 basis points at its March meeting, it’s going to have to do so at the May meeting,” he predicted.

    Federal Reserve Board Chairman Jerome Powell speaks during a news conference after a Federal Open Market Committee meeting on February 01, 2023, in Washington, DC. The Fed announced a 0.25 percentage point interest rate increase to a range of 4.50% to 4.75%.

    Last summer, Fed Chair Jerome Powell warned that “some pain” (aka rising unemployment) would likely be felt as a result of the Fed’s sweeping efforts to tackle inflation.

    Yet Powell did not once utter the word “pain” during his press conference on Wednesday, said Mark Hamrick, senior economic analyst with Bankrate.

    “If they were to put money on it, I think Las Vegas oddsmakers would be doubling down right now on the soft landing scenario — not to say that’s the base case, per se, but the chances seem to be growing,” Hamrick said.

    “If anything, the global economic scenario has brightened in recent days and weeks — and we got a significant ray of sunshine with this January employment report, including all the revisions — but that’s not to say that consumers or businesses should be complacent with respect to an eventual risk of a recession,” he said.

    So for now, the chances of a soft landing remain unknown.

    “This is sort of a bumpy, turbulent ride to who knows where,” Crofoot said.

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  • The US economy added a whopping 517,000 jobs in January | CNN Business

    The US economy added a whopping 517,000 jobs in January | CNN Business


    Minneapolis
    CNN
     — 

    The US economy added an astonishing 517,000 jobs in January, showing that the labor market isn’t ready to cool down just yet.

    The unemployment rate fell to 3.4% from 3.5%, hitting a level not seen since May 1969 — two months before Neil Armstrong stepped on the moon — according to new data released Friday by the Bureau of Labor Statistics.

    Economists were expecting 185,000 jobs would be added last month, based on consensus estimates on Refinitiv.

    “With 517,000 new jobs added in January 2023 and the unemployment rate at 3.4%, this is a blockbuster report demonstrating that the labor market is more like a bullet train,” Becky Frankiewicz, president and chief commercial officer of ManpowerGroup, said Friday.

    The shockingly strong monthly jobs gain — a number that several economists cautioned was influenced by seasonal factors and is subject to future revisions — bucks a trend of five consecutive months of moderating job growth during the latter half of 2022.

    “The blowout 517,000 increase in total employment was almost certainly a function of seasonal noise and traditional churn in early-year job and wage environment and exaggerates what is already a robust trend in hiring,” Joe Brusuelas, principal and chief economist with RSM US, said in a statement.

    Nonetheless the juggernaut of a report may cause complications for the Federal Reserve, which has been trying to tame high inflation with higher interest rates, said Seema Shah, chief global strategist of Principal Asset Management.

    “Is [Fed Chair Jerome] Powell now wondering why he didn’t push back on the loosening in financial conditions?” Shah said in a statement. “It’s difficult to see how wage pressures can possibly soften sufficiently when jobs growth is as strong as this, and it’s even more difficult to see the Fed stop raising rates and entertain ideas of rate cuts when there is such explosive economic news coming in.”

    “The market is going to go through a roller coaster ride as it tries to decide if this is good or bad news. For now, though, looks like the US economy is doing absolutely fine,” she said.

    Still, the report also showed that wage growth moderated on an annual basis: Average hourly earnings fell 0.4 percentage points to 4.4% year over year. Monthly wage gains held steady at 0.3%.

    “It’s quite remarkable to see such a realignment of the employment picture coinciding with an easing of wage pressure,” Mark Hamrick, senior economic analyst for Bankrate, said in an interview. “I think that might be part of this report that could help keep blood pressures down among Federal Reserve officials in the near term.”

    Additionally, average weekly hours jumped to 34.7 hours from 34.3, and employment in temporary help services rebounded after two months of declines, indicating further demand for labor, noted Julia Pollak, chief economist at ZipRecruiter.

    The report also showed an increase in the closely watched labor force participation rate to 62.4% from 62.3%. However, the increase in the share of people working or looking to work was a function of the BLS’ annual benchmark revisions to its household survey, one of two surveys that factor in to the monthly jobs report, noted PNC chief economist Gus Faucher.

    Had it not been for the revisions, that number would have been unchanged at 62.3%, he added.

    “The labor market is structurally tighter post-pandemic,” he said.

    Every January, the BLS makes revisions on its employment data to reflect updated population estimates and other factors.

    “On net, you saw stronger hiring in 2022 than what was initially reported,” said Sarah House, chief economist with Wells Fargo, told CNN.

    Average monthly job growth in 2022 was revised up from an average of 375,000 per month to 401,000, she said.

    Seasonality questions aside, other trends do align to support a strong January 2023 jobs report, Bankrate’s Hamrick said.

    “When you have a number of things lining up, almost like a crime scene investigation, it tends to lend some credibility to that question of believability,” he said of the surprising half-a-million-plus job gains. “What are the things that are lining up? The continued remarkably low level of jobless claims, the rise in job openings, the increase in labor force participation.”

    The gains were also widespread across industries, with job growth led by leisure and hospitality, professional and business services, and health care, according to the BLS report.

    Industries that shed jobs last month included motor vehicles and parts (down 6,500 jobs), utilities (down 700 jobs) and information (down 5,000 jobs).

    In recent months, mass layoff announcements — especially from Big Tech — had spurred concern that the cutbacks were a harbinger of broader cutbacks to come.

    That doesn’t appear to be the case, considering jobless claims have remained historically low, job openings haven’t slipped and job gains remain strong, said Giacomo Santangelo, economist at Monster.

    “The news is talking about big names laying off, but we don’t really hear what happens at small firms with less than 200 employees,” he said. “What we’re seeing at Monster is a lot of firms, a majority of firms, are looking to hire.”

    The glut of available jobs — there are 1.9 open positions for every one job seeker — coupled with skills that are in high demand mean that workers are likely finding jobs quickly, he said. Additionally, those laid off by large technology firms likely received generous severance packages, so not all are filing for unemployment benefits.

    Friday’s report showed that the median duration of unemployment was 9.1 weeks, just a smidge above the pre-pandemic level of 8.9 weeks in February 2020.

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  • What to look for in Friday’s jobs report | CNN Business

    What to look for in Friday’s jobs report | CNN Business


    Minneapolis
    CNN
     — 

    A week that has been chock-full of economic data will be capped off Friday with the first US jobs report of 2023.

    Economists estimate that 185,000 positions were likely added in January, according to Refinitiv.

    That would be a considerable drop from the 504,000 jobs added in January 2022 and the 520,000 added in January 2021. It also would nearly match the 183,000 monthly average between 2010 and 2019, Bureau of Labor Statistics data shows.

    And yet, while the Federal Reserve’s aggressive rate hikes have helped make a dent in inflation and resulted in slower economic activity without stark rises in unemployment, the full effects have yet to come, Fed Chair Jerome Powell warned Wednesday.

    “I would say it is a good thing the disinflation we have seen so far has not come at the expense of a weaker labor market,” Powell said in a news conference following the Fed’s first monetary policymaking meeting of the year. “But I would also say the inflationary process you see under way is really at an early stage.”

    America’s unemployment rate dipped back down in December to 3.5%, once again matching a 50-year low. It’s expected to tick up to 3.6% come Friday.

    Layoff announcements — led by large tech firms — are picking up steam: The 43,651 job cuts announced in December jumped to 102,943 in January, according to a new data released Thursday morning by Challenger, Gray & Christmas.

    Still, those spikes in cutbacks haven’t become widespread. New data released Thursday by the Labor Department showed weekly initial jobless claims fell for the fourth time in five weeks, landing at 183,000, which is the lowest weekly total since April.

    “It’s a very interesting time where it’s really not clear whether what we’re seeing is a welcome, healthy rebalancing of the labor market — or a more worrying stall,” said Julia Pollak, senior economist with ZipRecruiter.

    Beyond the key headline indicators of payroll gains, unemployment and average hourly earnings, here are some other areas of the jobs report that Pollak and other economists will scrutinize when the January jobs report is released Friday morning.

    In December, the average working week for employees — including part-time workers — was 34.3 hours, according to BLS data.

    That’s down from the January 2021 high of 35 hours when the average workweek ballooned as workers were scarce and other employees were forced to pick up the slack and the extra shifts, Pollak said.

    “Typically, in good times, the workweek tends to be somewhere between 34.3 and 34.6 hours on average, and somehow it’s slowed all the way down to the bottom end of that range,” she said. “If it continues to deteriorate, that would suggest weakening demand for labor.”

    And usually, when demand gets weak, hiring stalls and layoffs and job losses follow, she said.

    As businesses recovered from the pandemic, they’ve increasingly relied on staffing agencies and contract employees. That sector started the pandemic with 2.9 million employees, plummeted to 1.9 million during the April 2020 trough, hit a record high of 3.56 million in July 2022 and has declined in each month since.

    “The recent decline in temp staffing is mostly the result of a healthy recovery in full-time, in-house hiring,” Pollak said. “But if it falls much below 3 million, I think that would be a warning sign as well.”

    Temporary and contract hiring can show where businesses expand and reduce their workforce at the margins, said Sarah House, senior economist at Wells Fargo.

    “The fact that we see that paring down suggests that the demand backdrop is starting to soften, and maybe they just don’t see the reason to hire and expand as much as they had previously,” House said.

    The imbalance of labor demand and worker supply has been consistently highlighted by the Fed as a potential sticking point in its efforts to lower inflation. While Fed officials have noted that wages don’t appear to be driving inflation, they have expressed concern that a a low participation rate and the imbalance of worker supply and demand could cause pay to rise and, in turn, cause higher prices.

    The labor force participation rate inched up two-tenths of a percentage point in December to 62.3%. Although that came following three consecutive months of declines, the percentage of people working or actively looking for work hovered between 62.1% and 62.4% throughout 2022.

    Based on Wednesday’s labor turnover data, that gap grew wider in December: There were 11.01 million job openings, or 1.9 available jobs for every unemployed person that month.

    “Long Covid is pretty real, and there’s a sizable share of the population who continue to suffer health effects related to Covid that are preventing them from being able to work,” said John Leer, chief economist with Morning Consult. “Then there’s ongoing child care challenges; we’ve got a lot of folks who retired early; we’ve got limited immigration not where it was pre-pandemic.”

    Beyond that and the ongoing demographic shifts of Baby Boomers aging out of the workforce, there’s also possibly some “information asymmetry” that’s occurring, he said.

    “There are people outside of the labor market who aren’t working, and they just simply don’t know how needed they are right now,” he said. “And I think that’s a function of being a little removed. The world has changed pretty dramatically over the last two to three years, and it’s going to be difficult to show people that the skills they possess are needed right now.”

    The government’s monthly jobs report is scheduled to be released at 8:30 a.m. ET on Friday.

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  • How Big Tech’s pandemic bubble burst | CNN Business

    How Big Tech’s pandemic bubble burst | CNN Business


    New York
    CNN
     — 

    In January 2021, Microsoft CEO Satya Nadella spoke in lofty terms about how the first year of the pandemic had sparked a staggering shift toward online services, benefiting his company in the process. “What we have witnessed over the past year is the dawn of a second wave of digital transformation sweeping every company and every industry,” he said.

    Two years later, the situation appears much more stark. This week, Microsoft said it planned to lay off 10,000 employees as businesses rethink their pandemic-era digital spending and confront broader economic uncertainty. Microsoft’s customers, Nadella said, are now trying “to do more with less.”

    Microsoft isn’t the only company experiencing such a dramatic reversal. Days later, Google-parent company Alphabet followed suit, saying it plans to cut around 12,000 jobs, amounting to more than 6% of its staff.

    Over the past three months, Amazon, Google, Microsoft and Facebook-parent Meta have announced plans to cut more than 50,000 employees from their collective ranks, a stunning reversal from the early days of the pandemic when the tech giants were growing rapidly to meet surging demand from countless households living, shopping and working online. At the time, many tech leaders seemed to expect that growth to continue unabated.

    By September of 2022, Amazon

    (AMZN)     had more than doubled its corporate staff compared to the same month in 2019, hiring more than half a million additional workers and vastly expanding its warehouse footprint. Meta nearly doubled its headcount between March 2020 and September of last year. Microsoft

    (MSFT)     and Google

    (GOOGL GOOGLE)     also hired thousands of additional workers, as did other tech firms like Salesforce

    (CRM)    , Snap

    (SNAP)     and Twitter, all of which have announced layoffs in recent weeks, too.

    But many of those same leaders appear to have misjudged just how much growth spurred by the pandemic would continue once people returned to their offline lives.

    In recent months, higher interest rates, inflation and recession fears causing a pullback in advertising and consumer spending have all weighed on tech companies’ profits and share prices. Wall Street analysts now project single-digit revenue growth during the all-important December quarter for Google, Microsoft and Amazon, and declines for Meta and Apple, when they report earnings in the coming weeks, according to Refinitiv estimates.

    The recent cuts in most cases amount to a relatively small percentage of each company’s overall headcount, essentially erasing the last year of gains for some but leaving them with tens or in some cases hundreds of thousands of remaining workers. But it nonetheless upends the lives of many workers now left to search for new jobs after their employers exit a period of seemingly limitless growth.

    “They went from being on top of the world to having to make some really tough decisions,” said Scott Kessler, global sector lead for technology, media and telecommunications at investment firm Third Bridge. “To see this dramatic reversal of fortunes… it’s not just the magnitude of these moves but the speed that they’ve played out. You’ve seen companies make the wrong strategic decisions at the wrong times.”

    Apple

    (AAPL)     remains an outlier as the one major tech company that has yet to announce layoffs, although the iPhone maker has reportedly instituted a hiring freeze of all areas except research and development. Apple

    (AAPL)     grew its staff by 20% from 2019 through last year, markedly less than some of its peers.

    “They’ve taken a more seemingly thoughtful approach to hiring and overall managing the company,” Kessler said.

    Tech CEOs, from Meta’s Mark Zuckerberg to Salesforce’s Marc Benioff, have blamed themselves for over-hiring early on in the pandemic and misreading how a surge in demand for their products would cool once Covid-19 restrictions eased. Pichai on Friday also took the blame for Alphabet’s cuts, and said he plans to return the company’s focus to its core business and “highest priorities.”

    “The fact that these changes will impact the lives of Googlers weighs heavily on me, and I take full responsibility for the decisions that led us here,” Pichai said in an email to employees that was posted to the company’s website Friday.

    Notably, however, none of the Big Tech company CEOs now overseeing layoffs appear to have been hit with any change to their compensation or title.

    The tech layoff announcements are likely to continue into the upcoming earnings season, Kessler said, amid ongoing economic warning signs. And even companies that might not yet be feeling the pain may follow their peers’ lead in trimming their workforces.

    “I think there is an element of [some companies saying], ‘We might not see this right now but all these other big companies, these companies that we compete with, that we know, that we respect, are taking these kinds of actions, so maybe we should be thinking and acting accordingly,” Kessler said.

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  • What to expect at work this year | CNN Business

    What to expect at work this year | CNN Business


    New York
    CNN
     — 

    The pandemic has transformed work over the past three years in ways few expected. It normalized remote work, created a shortage of critical workers and drove home to organizations that employees’ mental health and need for a sane work-life balance are critical to retention and engagement.

    So what does 2023 likely hold for you at your job, regardless of your industry?

    There are welcome and unwelcome developments on tap, along with some potentially confusing ones, too.

    Let’s get the bad news out of the way first.

    Regardless of whether the United States slips into a recession, there will be more widespread job cuts than what we’ve seen happening so far in industries like tech, media and finance.

    “We’re starting to see more layoffs pick up in other industries. I do anticipate rising layoffs in most sectors,” said Andrew Challenger, senior vice president of outplacement firm Challenger, Gray & Christmas.

    But that shouldn’t be surprising, given that layoffs in 2021 and 2022 were at their lowest levels since 1993.

    That said, the job market has cooled a bit — but it’s still running hot, with a high level of job openings per job seeker.

    The overall slowdown in hiring is likely to continue, with employers more likely to reinstate performance-improvement plans for underperforming employees and performance-related layoffs, Challenger predicts.

    And, of course, should there be a real recession, the layoffs would cut much deeper.

    While there is still tension between executives and employees about how many days people should be physically present at work, hybrid work and work flexibility isn’t going away.

    “Today, the majority of employers (66%) are permitting hybrid working and an additional 9% give employees the option to work from home every day,” according to benefits consulting firm Mercer.

    Nevertheless, this may be the year employers start to actually enforce their minimum-days-in-the-office mandates, Challenger said.

    Just this week, for example, Disney CEO Bob Iger ordered employees to return to corporate offices four days a week beginning March 1.

    Front-line employees like retail workers, health care aides and security guards, whose jobs require them always to be on site, may be offered other forms of flexibility, said Emily Rose McRae, senior director of research at Gartner, a workplace consulting firm.

    That could include being given a regular schedule, as opposed to working “on demand,” where they don’t know their schedule in advance, McRae said. It also could mean getting more paid leave, or that front-line workers could opt out of working certain shifts or certain days.

    McRae said she sees more employers offering what she calls “proactive rest” options this year.

    The idea is to actively help people recover before becoming fully depleted not only by work, but by the upending of their lives from the pandemic and the social and political upheaval of the past few years.

    “The big shift is in recognizing our work force is in trouble,” McRae said.

    Proactive rest can take many forms. Some employers may offer days off — whether it’s a whole week or just one day a week for a set period of time. Or it could simply mean branding a given workday as a no-meeting day.

    Information technology professionals will continue to win the day at work when it comes to who gets the biggest raises and bonuses.

    “Most organizations are anticipating the talent market to remain as competitive, or more competitive, at least in the first half of this year,” said Tony Guadagni, a senior principal in Gartner’s HR practice. “They will do what they have to to attract that critical talent.”

    Employers’ projected increases for this year in terms of merit increases (3.9%) and total pay (4.3%) are the highest they’ve been in 15 years, according to workplace consulting firm Mercer. But given that inflation is still pacing higher than those levels, you may not feel the raise you get is making a huge difference in what you can afford — unless your skills are in high demand.

    It used to be difficult to figure out whether you were being paid competitively for your talents, since companies weren’t open about what they paid others and colleagues wouldn’t discuss their pay.

    But now that New York City, the state of California, and a handful of other states and localities have implemented pay transparency rules for job postings, it will be easier in 2023 to confirm you’re being paid fairly relative to your teammates, and to determine the salary range on offer if you’re looking for a new job.

    Still, these laws are very new, and companies have not been uniform in how they’re handling the new rules. Some recent job postings, for instance, have advertised unhelpfully wide pay ranges — think $50,000 to $200,000.

    Beyond the big benefits employers typically offer full-time staffers (e.g., subsidized health insurance, a 401(k) match, etc.), they also offer a range of secondary benefits or perks, such as tuition reimbursement, supplemental life insurance, a stipend for home office supplies or financial coaching.

    Gartner and Mercer are seeing more companies let employees decide how best to spend these perk dollars by letting them direct a fixed amount of money across the secondary benefits that are most important to them.

    Your organization may engage in “quiet hiring” this year, if it hasn’t already.

    It’s a misleading term, in that it is neither quiet nor does it involve actual hiring.

    Rather, your company will want to repurpose existing employees — possibly you, if you have relevant skills — for the employer’s highest priority projects this year.

    That could be a great opportunity if you hate being limited to the same tasks of your official job, or if you want to develop new skills and work with new people in your company.

    It also could be highly frustrating, especially if a company is simply putting everyone on rotation to make sure understaffed, critical tasks get done by anyone with the adequate skills to do so.

    Either way, “quiet hiring” may offer an initial taste of a broader trend likely to unfold over the next several years that could spell the end of “jobs” — and specifically job descriptions as we know them, according to consulting firm Deloitte.

    That’s because many employers want to transition away from being a jobs-based organization to a skills-based one so they can quickly adapt to change, address talent shortages and provide their workforce with opportunities to develop professionally, said Arthur Mazor, a principal global leader at Deloitte’s Human Capital Practice.

    So instead of viewing you as a holder of Job X, your company is likely to view you as a person with an array of skills that can be deployed in many ways.

    Early adopters this year can be found across various industries, Mazor said — from software makers to auto manufacturers to financial services to health care.

    Even at companies that have not formalized a shift to being a skills-based organization, the change is happening anyway. Roughly 70% of workers say they’re already doing work outside of their job, according to Deloitte.

    One recent example, cited in Deloitte’s latest work report, comes from M&T Bank, a leading Small Business Administration lender. Its chief talent officer told the firm, “when the Paycheck Protection Program was rolled out during the pandemic, we had to stop thinking about jobs and start thinking about skills. … By focusing on skills versus jobs — and rapidly mobilizing talent in an agile way — we outperformed our peers.”

    It’s too early to determine exactly how this will play out for employees, in terms of incentives offered for switching to a new project or pinch-hitting for another department, how an employee’s work will be assessed and rewarded, and how much say they will get in the projects assigned.

    But done right, Mazor said, employees should have the opportunity to share on an internal database their skills and what areas they wish to develop before being matched with a new assignment.

    “This isn’t a clandestine effort. It involves worker input.”

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  • Lovie Smith said the NFL had ‘a problem’ about Black coaches. A year later he was fired and the league is being criticized yet again about its lack of diversity | CNN

    Lovie Smith said the NFL had ‘a problem’ about Black coaches. A year later he was fired and the league is being criticized yet again about its lack of diversity | CNN



    CNN
     — 

    When Lovie Smith was hired by the Houston Texans in February 2022 as the team’s new head coach, he said the NFL had “a problem” with hiring Black coaches and diversity.

    “I realize the amount of Black head coaches there are in the National Football League,” Smith told reporters just under a year ago.

    “There’s Mike Tomlin and I think there’s me, I don’t know of many more. So there’s a problem, and it’s obvious for us. And after there’s a problem, what are you going to do about it?”

    Smith was fired Monday at the end of his one and only season at the helm of the Texans, finishing with a record of 3-13-1.

    Smith is the second Black coach in two years to be relieved of his duties by the Texans, which fired David Culley at the end of the 2021 season.

    Smith’s time in charge wasn’t full of wins and high points – though his parting gift to the organization was a last-minute Hail Mary victory over the Indianapolis Colts, which saw them relinquish the No. 1 pick in the 2023 NFL draft to the Chicago Bears. But his Texans team showed togetherness and competence, traits often desired by outfits undergoing a rebuild.

    Houston general manager Nick Caserio said Smith’s firing was the best decision for the team right now.

    “On behalf of the entire organization, I would like to thank Lovie Smith for everything he has contributed to our team over the last two seasons as a coach and a leader,” Caserio said in a statement.

    “I’m constantly evaluating our football operation and believe this is the best decision for us at this time. It is my responsibility to build a comprehensive and competitive program that can sustain success over a long period of time. We aren’t there right now, however, with the support of the McNair family and the resources available to us, I’m confident in the direction of our football program moving forward.”

    But the firing of the 64-year-old coach, the Texans organization as a whole, and the measures implemented by the league to promote diversity have been heavily criticized by former players and TV pundits.

    “The Houston Texans have fired Lovie Smith after 1 year. Using 2 Black Head Coaches to tank and then firing them after 1 year shouldn’t sit right with anyone,” former NFL quarterback Robert Griffin III tweeted Sunday, when news of Smith’s firing broke.

    On ESPN, Stephen A. Smith and NFL Hall of Famer Michael Irvin also condemned the decision. Smith called the Texans organization an “atrocity.”

    “They are an embarrassment. And as far as I’m concerned, if you’re an African American, and you aspire to be a head coach in the National Football League, there are 31 teams you should hope for. You should hope beyond God that the Houston Texans never call you,” Smith said.

    Irvin said Black coaches are being used as “scapegoats” by the Texans.

    “It’s a mess in Houston and they bring these guys in and they use them as scapegoats. And this is what African American coaches have been yelling about for a while and it’s blatant, right in our face,” he said.

    When CNN contacted the Texans for comment, the team highlighted the moment at Monday’s news conference when Caserio was asked why any Black coach would consider working for the team, and his response was that individual candidates would have to make their own choices.

    “In the end it’s not about race. It’s about finding quality coaches,” the general manager said. “There’s a lot of quality coaches. David (Culley) is a quality coach. Lovie (Smith) is a quality coach.

    “In the end, each coach has their own beliefs. Each coach has their own philosophy. Each coach has their comfort level about what we’re doing. That’s all I can do is just be honest and forthright, which I’ve done from the day that I took this job, and I’m going to continue to do that and try to find a coach that we feel makes the most sense for this organization. That’s the simplest way I can answer it, and that’s my commitment.

    “That’s what I’m hired to do, and that’s what I’m in the position to do. At some point, if somebody feels that that’s not the right decision for this organization, then I have to respect that, and I have to accept it.”

    CNN has reached out to Lovie Smith for comment.

    At the beginning of the 2022 season, NFL.com reported Smith was one one of just six minority head coaches in the NFL, a low number in a league where nearly 70% of the players are Black.

    Since Art Shell was hired by the Los Angeles Raiders in 1989 as the first Black head coach in modern history, there have been 191 people hired as head coaches, but just 24 have been Black.

    However, the NFL has taken steps to increase diversity in the coaching ranks.

    Notably, in 2003, the NFL introduced the Rooney Rule to improve hiring practices in a bid to “increase the number of minorities hired in head coach, general manager, and executive positions.”

    But the Rooney Rule hasn’t been an unqualified success.

    In 2003, the Detroit Lions were fined $200,000 for not interviewing any minority coaches before hiring Steve Mariucci as their new head coach.

    In response to criticism, the NFL announced it was setting up a diversity advisory committee of outside experts to review its hiring practices last March. Teams would also be required to hire minority coaches as offensive assistants.

    Despite changes to the rule being implemented in recent years to strengthen it, a 2022 lawsuit alleges that some teams have implemented “sham” interviews to fulfill the league’s diversity requirements.

    Last February, former Miami Dolphins head coach Brian Flores filed a federal civil lawsuit against the NFL, the New York Giants, the Denver Broncos and the Miami Dolphins organizations alleging racial discrimination.

    Flores, who is Black, said in his lawsuit that the Giants interviewed him for their vacant head coaching job under disingenuous circumstances.

    Two months after submitting the initial lawsuit, Flores added the Texans to it, alleging the organization declined to hire him this offseason as head coach “due to his decision to file this action and speak publicly about systemic discrimination in the NFL.”

    In response to the lawsuit, the Texans said their “search for our head coach was very thorough and inclusive.”

    The NFL called Flores’ allegations meritless.

    “The NFL and our clubs are deeply committed to ensuring equitable employment practices and continue to make progress in providing equitable opportunities throughout our organizations,” the league said in response to the lawsuit.

    “Diversity is core to everything we do, and there are few issues on which our clubs and our internal leadership team spend more time. We will defend against these claims, which are without merit.”

    But 12 months after firing their last Black head coach, the Texans have fired another one.

    “How do you hire two African Americans, leave them one year and then get rid them?” questioned NFL Hall of Famer Irvin.

    “You know the mess that Houston is,” Irvin added. “We get the worst jobs and we don’t get the opportunity to fix the worst jobs, just like this.

    “I don’t know any great White coach that would take the (Texans) job unless you give them some guarantees. ‘You’re going to have to guarantee me four years to turn this place around.’ But the African American coaches can’t come in with that power because Lovie wouldn’t have got another job.

    “This was his last chance to get back into the NFL and you have to take what’s on the table to try to change that.”

    The Texans are now searching for a new head coach under general manager Caserio. The new appointment will be Caserio’s third coach in the role: It is almost unprecedented for a general manager to get the opportunity to hire a third head coach with the same team.

    Texans chairman and CEO Cal McNair said he would take on a more active role in the hiring process. The next head coach will be the organization’s fourth in three years.

    According to the NFL, the Texans have requested to speak to five candidates already about filling Smith’s position, a list that includes two Black coaches.

    After Smith was hired in March 2021, McNair said: “I’ve never seen a more thorough, inclusive, and in-depth process than what Nick (Caserio) just went through with our coaching search.”

    At that introductory news conference, Smith spoke candidly about how to bring greater diversity to the NFL coaching ranks.

    “People in positions of authority throughout – head coaches, general managers – you’ve got to be deliberate about trying to get more Black athletes in some of the quality control positions just throughout your program. If you get that, they can move up, that’s one way to get more.”

    Smith continued: “It’s not just an interview, if you’re interviewing a Black guy. It’s about having a whole lot of guys to choose from that look like me. And it’s just not about talk. You look at my staff, that’s what I believe in. And letting those guys show you who they are. That’s how we can increase it, then it’s left up to people to choose. We all have an opportunity to choose, and that’s how I think we’ll get it done.”

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  • LinkedIn is having a moment thanks to a wave of layoffs | CNN Business

    LinkedIn is having a moment thanks to a wave of layoffs | CNN Business


    New York
    CNN
     — 

    In a normal year at this time, a typical LinkedIn feed might be full of posts about year-end reflections on leadership and professional goals and suggested lifehacks for the year ahead — possibly with a few posts from CMOs offering tips on brand strategy, for good measure.

    Those posts are still there. But mixed in are many others about job hunts, offers of support for laid off friends and colleagues, and advice for coping with career hurdles in an uncertain economic environment.

    Some LinkedIn users affected by recent layoffs have formed groups on the site aimed at providing assistance, coordinating around signing exit paperwork and aiding with connections for new jobs. One LinkedIn group of employees affected by the November layoffs at Facebook-parent Meta, for example, now has more than 200 members. Even bosses who are doing the laying off have turned to LinkedIn to explain themselves and seek support or advice, as one marketing CEO did in a post alongside a tearful selfie last year (to mixed results).

    If the first year of the pandemic was marked by widespread layoffs in lower paying retail and services jobs, the past few months have been defined by something different: the prospect of a white-collar recession. Even as the overall job market remains strong, there has been a wave of recent layoffs in the tech and media industries — which just so happen to make up a core part of LinkedIn’s user base. Suddenly, the normally staid professional network has become both a vital lifeline for recently laid off workers and a surprisingly lively social platform.

    The LinkedIn mobile app was downloaded an estimated 58.4 million times worldwide in 2022 across the Google Play and Apple app stores, up 10% from the prior year, according to research firm Sensor Tower.

    The number of posts on LinkedIn mentioning “open to work” were up 22% during November compared to the same period in the prior year, according to data provided by the company. LinkedIn says it also saw a steady increase in the rate of users adding connections last year compared to the year prior, a sign that users were more active on the platform.

    The uptick in use appears to have been good for LinkedIn’s business. The platform posted 17% year-over-year revenue growth in the three months ended in September, according to parent company Microsoft’s most recent earnings report. Microsoft CEO Satya Nadella told analysts in the October earnings call that LinkedIn was seeing “record engagement” among its 875 million members, with growth accelerating especially in international markets.

    Some of LinkedIn’s momentum may predate the wave of layoffs. “There’s been an uptick in [LinkedIn use] since the pandemic,” said Jennifer Grygiel, an associate professor and social media expert at Syracuse University. “You had to do social distancing and we were quarantining and people were working remotely so there was a shift in real-life networking possibilities.”

    LinkedIn rose to the occasion — and now it may be rising to another one.

    Even apart from the layoffs, the social media landscape has been through a volatile year. Facebook and Instagram have been criticized by users for racing to turn their services into TikTok. TikTok has been criticized over concerns that user data could end up in the hands of the Chinese government. And after Elon Musk’s takeover of Twitter late last year, the platform has been criticized for morphing into a possible haven for its most incendiary users.

    But LinkedIn remains, as ever, LinkedIn — and at this moment, with fears of a looming recession and career concerns top of mind, LinkedIn may be just what the digital world needs.

    Grygiel said many people working in media or academia are likely now looking for somewhere to build and engage in professional communities other than Twitter. And while upstart Twitter alternatives like Mastodon have experienced a surge in growth, they still don’t have the same sort of network effect that comes with a legacy platform’s broad user base.

    LinkedIn in recent years has leaned into courting influencers who regularly post content to the site, potentially giving users more reasons to visit. And the platform has been growing its “learning” section, which provides video courses taught by various industry experts and which the company says experienced a 17% increase in hours spent as of November compared to the year prior. But lately it appears users have more than enough reason to use LinkedIn amid a wave of thousands of layoffs.

    Perhaps the clearest and most public examples of LinkedIn’s new centrality came from rival social networks like Twitter.

    In the wake of Twitter’s November mass layoffs — in which half the company was terminated, followed by additional firings and exits — many former and remaining employees took to LinkedIn, rather than the platform they had built, to seek support, community and new opportunities.

    One group of Twitter employees created a spreadsheet of laid-off workers from the company alongside recruiters hiring for other firms, and used LinkedIn to help facilitate sign-ups. Another pair of former Twitter employees set up a system to connect job hunters with recruitment professionals open to volunteering to provide free resume review and interview prep services, which they promoted through LinkedIn.

    “We completely understand how the job-hunting process can be scary and overwhelming … While we can’t guarantee where your next opportunity will be or when it will come, we can offer guidance, so you will be ready for that opportunity when it arrives,” Darnell Gilet, a former Twitter senior technical recruiter who helped coordinate the effort, said in a LinkedIn post.

    Gilet, who was affected by the mass layoffs at Twitter in November following Elon Musk’s takeover, told CNN last month that around 28 different recruiters and talent acquisition professionals had agreed to participate in the system, and that he himself had spoken to nearly two dozen job seekers since shortly after he was laid off to offer advice and support. He said LinkedIn seemed like the obvious place to promote the service.

    “Chaos creates opportunity for somebody, right?” Gilet said. “People are getting laid off and you have this recession that’s looming, the ideal place … that would have the greatest growth opportunity from that would be a platform that’s focused on careers like LinkedIn. So it makes perfect sense.”

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  • America capped off an extraordinary year for job growth, adding 223,000 positions in December | CNN Business

    America capped off an extraordinary year for job growth, adding 223,000 positions in December | CNN Business


    Minneapolis
    CNN
     — 

    The US economy added 223,000 jobs in December, according to the monthly employment report from the Bureau of Labor Statistics, capping a year of extraordinary job growth and marking the second-best year for the labor market in records that go back to 1939.

    The unemployment rate fell back to a record low of 3.5% from a revised 3.6% in November.

    Economists were expecting 200,000 job gains for the last month of the year, according to Refinitiv. December’s job total is lower than the downwardly revised 256,000 jobs added in November.

    Including last month’s gains, which are subject to revision, the economy added about 4.5 million jobs in 2022. That’s the second-highest-ever total, after the 6.7 million jobs added in 2021 — a boomerang from 2020’s 9.3 million job losses.

    The labor market slowed in 2022, compared to the previous year’s tear. December’s jobs total represents the lowest monthly gains in two years.

    Those latest gains come following months of jumbo interest rate increases from the Federal Reserve in its attempt to cool off the economy after inflation last year hit its highest level since the 1980s. Those efforts have, so far, remained mostly elusive.

    That means the Fed is entering 2023 looking for a considerably softer and looser labor market — notably, increased labor participation, a better alignment of job seekers to open positions, and lower levels of wage growth.

    “This is about the best report one could hope for, given a still very hot US labor market,” said Joe Brusuelas, principal and chief economist for RSM US.

    Wall Street responded positively to Friday’s jobs data, with the Dow rising by almost 500 points by mid-morning — mostly a reaction to the slower pace of wage growth. Average hourly earnings increased 0.3% over the previous month and 4.6% annually. That’s compared to 0.4% month-on-month growth in November and 4.8% annual growth.

    The December report showed that the labor force participation rate, an estimation of the active workforce and people looking for work, ticked up to 62.3% from 62.2%.

    Labor force participation rates have been on a decline — largely due to demographic changes and aging Baby Boomers — since hitting a high of 67.3% in early 2000, and had fallen to 63.3% in the month before the onset of the pandemic. The participation rate has not returned to pre-pandemic levels, vexing economists and the Fed, while also contributing to an imbalance of worker supply and demand.

    “The labor market is moving in the right direction for the Federal Reserve, according to the December employment report, but is not there yet,” Gus Faucher, senior economist for PNC Financial services said in a statement. “Job growth is slowing to a more sustainable pace, and wage growth is softening as demand in the job market slackens somewhat.”

    However, with job growth well above pre-pandemic levels, when job gains averaged 164,000 in 2019, and the unemployment rate returning to a 50-year low, there is little indication that there will be enough of a boost in the labor force to help cool off the job market, he said.

    Some of the largest monthly gains were in industries such as leisure and hospitality, health care, and accommodation and food services, which all were hit hard during the pandemic. There were also notable monthly job losses in technology and interest-rate-sensitive sectors that surged during the pandemic and are now rebalancing as consumers shift spending toward services.

    Industries such as information, finance and professional and business services, shed jobs between November and December.

    The losses seen in areas such as professional and business services are likely an effect of the waves of mass layoffs hitting the tech industry, said Ken Kim, a senior economist at KPMG.

    “We are seeing a little bit of spread to other areas,” he said.

    In addition to Friday’s strong jobs numbers, several other pieces of jobs data released this week continue to reflect a healthy labor market. Wednesday’s Job Openings and Labor Turnover Survey (JOLTS) report showed that the number of available jobs remained steady at 10.5 million in November. It also showed that quits, layoffs and hires didn’t really show any major signs of cooling that month.

    ADP’s private-sector employment report on Thursday also showed a robust labor market, with 235,000 jobs added in the private sector during December, well exceeding expectations of 150,000.

    And Thursday’s weekly jobless claims fell by 21,000 to 204,000 for the week ending November 26, while continuing claims decreased to 1.69 million from 1.72 million to 1.61 million.

    —CNN’s Matt Egan contributed to this report.

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  • US job openings totaled 10.5 million in November, more than expected | CNN Business

    US job openings totaled 10.5 million in November, more than expected | CNN Business


    Minneapolis
    CNN
     — 

    The number of available jobs in the United States totaled 10.46 million in November, according to data released Wednesday by the Department of Labor.

    That’s more than the 10 million total job openings that economists were expecting, according to Refinitiv, and slightly lower than the upwardly revised October total of 10.51 million.

    “The US labor market remains on fire,” Nick Bunker, head of economic research for Indeed Hiring Lab, said in a statement about the latest Job Openings and Labor Turnover Survey, or JOLTS. “The flames may have receded a bit from the highs of the initial reopening of the economy, but demand for workers remains robust and workers are seizing new opportunities.”

    There were still about 1.7 job openings for each job seeker in November, unchanged from October, according to data from the Bureau of Labor Statistics. The Federal Reserve closely monitors this ratio, since tightness in the labor market means employees have greater leverage to seek higher wages, which in turn drives up inflation.

    The robust number of job openings remains “a testament to the resilience of demand for labor on Main Street, even as job openings tumbled on Wall Street,” said Julia Pollak, chief economist with ZipRecruiter, in a tweet posted shortly after the report was released.

    Job hiring inched down to 6.06 million in November from 6.11 million in October, according to the report. Layoffs fell to 1.35 million from 1.45 million, and the number of people quitting their job increased to 4.17 million from 4.05 million.

    “The Great Resignation is far from over — quits surged in November, to 4.2 million,” Pollak said. “They have now been above 4 million for 18 straight months, after coming in at 3.4 million before the pandemic and averaging 2.6 million in the prior years.”

    Although openings came in above expectations, the JOLTS report likely won’t spur a dramatic change in course from the Fed, economists for labor market analytics company Lightcast said during a webcast Wednesday morning.

    “This report shows more positive signs for the economy than originally expected,” said Bledi Taska, Lightcast’s chief economist. “This was a very surprising report, but in some ways that’s positive for the economy overall. This report moves us from cautious to cautiously optimistic. I don’t expect to have to use the word recession any time soon.”

    Labor turnover activity this month will provide a good window of where the labor market may be heading, Taska said, adding that he would expect layoff activity to rise but not to a point of where it would indicate a serious recession was taking hold.

    The data comes ahead of the government’s closely watched monthly jobs report, which is set to be released on Friday and is expected to show that 200,000 jobs were added to the US economy in December.

    While that number is slightly lower than in previous months, it caps off an unusually strong year for the labor market — all the more so, given the Fed’s efforts to slow the economy in order to rein in demand and inflation.

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  • Job site ZipRecruiter cutting 20% of its staff | CNN Business

    Job site ZipRecruiter cutting 20% of its staff | CNN Business


    New York
    CNN
     — 

    Fewer employers looking for workers means 270 employees at job search site ZipRecruiter will soon be out of a job.

    The company is cutting 20% of its staff by the end of this month, the company disclosed in a filing late Wednesday.

    “This action was taken in response to current market conditions and after reducing other discretionary expenses, with a view toward driving long-term efficiency,” according to the filing.

    The company had previously said it is experiencing a “typical softness in jobs posting” in January, but sounded other alarms about a slowing in the labor market. Its first quarter revenue fell 19% from a year earlier and it forecast that its revenue in the current quarter would be down nearly 30% from the second quarter of 2022.

    The job search site still projects adjusted earnings that are roughly the same for this year as last year, although it said to do so it would “respond to our environment quickly” by “increasing our focus on profitability during times of decreased demand from employers.”

    About half of the 270 employees losing their job are in the sales and customer support teams. The company will take a charge of between $7 million to $9 million to cover severance costs. It expects to still make the same level of profits, excluding special items such as severance, as in its earlier guidance.

    It also announced that CEO Ian Siegel agreed to a 30% cut in base salary, as of June 1. He has a base salary of $550,000, according to an earlier filing, but had total compensation last year of about twice that amount.

    Layoffs across the tech sector have become widespread in recent months. Amazon, one of the nation’s largest private-sector employers, has announced two rounds of job cuts this year totaling 27,000 positions, and Facebook holding company Meta has announced 21,000 job cuts since last fall. Alphabet, Microsoft and Salesforce — and especially Twitter — have all announced large job cuts.

    Outplacement firm Challenger, Gray & Christmas said Thursday there have been 137,000 layoffs in the sector in the first five months of the year, the most job cuts in the sector since there were 168,000 in all of 2001, the year after the dot.com bubble burst.

    Despite all the job cuts in technology and also in media, US employers overall are still hiring more people than they’re cutting.

    Private sector employment increased by 278,000 jobs in May, according to ADP’s monthly National Employment Report released Thursday, much stronger than the 170,000 forecast by economists. Economists are also forecasting a gain of 190,000 jobs for May when the Labor Department issues its monthly jobs report Friday. The April jobs report also came in much stronger than expected, as employers added 253,000 jobs.

    Still, hiring is at a slower pace than a year ago, when employers added 445,000 jobs a month, on average, in the first half of 2022. The Labor Department’s count of job openings, while up 3% in April compared to March, is down 14% from a year earlier — though that still means there are 1.8 jobs available for every job seeker.

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