ReportWire

Tag: labor

  • ‘The war on remote work is not over.’ But one group in particular is heading back to the office.

    ‘The war on remote work is not over.’ But one group in particular is heading back to the office.

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    As the fight between bosses and workers over returning to the office keeps entering new rounds, new data show how much in-office attendance ramped up last year — especially for white-collar workers with high levels of education.

    But even still, the return to the office has been two different stories for men and women. From 2021 to 2022, men spent more time at the workplace while women spent the same amount of time working from home year-over-year.

    Last year, 34% of workers said they worked from home at least part of the time, according to the annual Bureau of Labor Statistics survey of how Americans spend their time.

    That was down from the 38% of employed people who said the same in 2021 — and a deeper look into Thursday’s data reveals an even more pronounced, but uneven, reduction in the number of people who are working remotely.

    More than one quarter of men in 2022 said they spend at least some of their working time at home, while 41% of women said they had work-from-home in their job schedule. One year earlier, it was a different story for men, but not for women. Over one-third of men, 35%, said working from home was part of their routine while 42% of women said the same.

    It may be a reminder of the juggle that women face between their personal and professional lives. For example, in homes with children under age 6, women spent just over an hour each day caring for their children while men in those households spent half that amount. That breakdown was unchanged between 2022 and 2021, the data showed.

    Meanwhile, the return-to-office trend accelerated for more educated workers from 2021 to 2022. In 2021, 60% of people with at least a bachelor’s degree said they did some of their work from home. In 2022, the share fell to 54% doing some work from home.

    When the pandemic shut down offices and other workplaces, people with higher levels of education often had greater chances of being able to stay home while they worked.

    That dynamic is still at play now, although the differences between groups are becoming less stark. Last year and in 2021, the share of people with no college degree who said they worked from home at least some of the time stayed below 20%.

    It’s unclear what was driving highly-educated workers to spend more time in the office between 2021 and 2022, said Stephan Meier, a Columbia Business School professor who chairs the school’s management division. Some of it could be attributed to return-to-office policies, but it might also be due to growing comfort with vaccination and public-health measures as the pandemic continued, he said.

    “What I would care about is who goes to the office and who doesn’t want to go to the office,” he said.

    The overall change in numbers is not “a major shift,” said Meier, who teaches students and executives about the future of work. “What those numbers show to me is that the war on remote work is not over.”

    The year-over-year decline fits with the trends that Nicholas Bloom, a professor of economics at Stanford University, is seeing in his own research analyzing where people say they are working these days. Even if there’s less remote work happening, Bloom said, his research shows the “rate of decline is itself declining.”

    Bloom thinks the rate of remote work may bottom out next year. “I predict longer-run, from 2025 onwards, this will start to rise again as remote-work technology — hardware, software, [virtual reality, augmented reality], etc. — gets better and continues the long-run rise of [working from home].”

    Between May and December 2020, Bureau of Labor Statistics research showed, 42% of employed people said they spent least some of their time working from home as COVID-19 upended daily life.

    As a whole, the BLS survey on how Americans use their time paints a picture of a slow return to the office — but not necessarily a return to the way things were before COVID-19.

    Before the pandemic, 24% of workers said they spent some of their time working from home, according to the Bureau of Labor Statistics.

    This year, office foot traffic has edged higher, but the rise is incremental and uneven. Earlier in June, average weekly office occupancy surpassed 50% for the first time in three months, according to an ongoing gauge from Kastle Systems, a security-technology provider.

    One week later, the company’s barometer of average occupancy across 10 major cities dropped back below 50%. In the data from early June, Tuesdays tended to be the busiest days for offices, and Fridays were the slowest.

    Meier said he wouldn’t be surprised if next year’s time-use survey reveals even less time spent working from home. But this is a transitional moment in which businesses are figuring out the particular version of hybrid work duties and office setups that work for them, he said.

    “Personally, I do think there is something magical about being in person,” Meier said. “Does it need to be five days a week? Absolutely not.”

    See also: Salesforce is trying a ‘cute gimmick’ to get workers back to the office, but it may fall flat

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  • We’re 54, have $4.5 million in savings but don’t know how to withdraw it in retirement. What should we do?

    We’re 54, have $4.5 million in savings but don’t know how to withdraw it in retirement. What should we do?

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    My wife and I are both 54 years old and have accumulated a taxable account totaling $2.3 million, and retirement assets totaling $2.2 million. We hope to retire at 55, and we are wondering about the best way to take our distributions. Clearly we will not touch the qualified money until we reach 59½.  

    I understand the 4% rule, but when it comes to taking the money, is it better to have a set monthly, quarterly, or annual withdrawal, or is it better to take a lump sum? I can see myself going crazy trying to time market tops in order to take distributions. I was planning to take money off the table after the peak in 2021. I purposely held out until 2022 for tax purposes and that backfired.  

    Is the best course of action to set it and forget on a monthly, quarterly, or annual basis?

    See: I’m 54 and the primary earner but ‘professionally, I am exhausted’ — we have $2.18 million but what about healthcare?

    Dear reader, 

    You touch on a really common issue retirees have: the distribution phase. 

    For decades, Americans are told to save, save, save for retirement, but then they get to the point where they need to start using the money…and that can be a complicated process. Retirees need to have an idea of how much to withdraw, what that distribution’s impact will be on the rest of their nest egg, what to expect come tax time and how not to use that money too quickly. 

    Like so much in personal finance, the answer to your question is highly dependent on individual circumstances. I’ll get to that in a minute. 

    First, a note about the 4% rule. This rule is meant to be a guideline. For some people, 4% is too much, while for others, it isn’t enough. Experts have argued its applicability, too — Morningstar, for example, said retirees could use a rate of 3.3% and would have a 90% probability of not running out of money in retirement. 

    Want more actionable tips for your retirement savings journey? Read MarketWatch’s “Retirement Hacks” column

    Before you commit to the 4% rule (which, of course, you can always adjust as the years go on), do a few quick calculations on how much you expect to spend in retirement — with a buffer included — and see what the percentage of your total retirement savings actually is. You may be able to retain more in your retirement assets than you expected. 

    If you’re still not sure on how much to take out, perhaps start a bit more conservatively in an effort to preserve your investments. The less money you take out, the more in your accounts that can continue to grow.

    Also, be aware of something called the “sequence of returns” risk, which is when your portfolio value drops too quickly at the beginning of your distribution journey. The result could be less than ideal for your account.

    Read: The Decumulation Drawdown: How spending became the big dilemma in retirement

    Pay attention to the tax implications of your decision, and consider consulting a qualified financial planner and/or an accountant to help you run the numbers. There are plenty of factors you have not included in your letter, such as if any of that money is in Roth accounts, and even then, a qualified financial planner can get into the granular details to help you make the most of your retirement spending and savings. You might find making Roth conversions to be beneficial as your taxable income drops — it’s also a way to avoid required minimum distributions down the road. 

    Also, you’re right not to touch your retirement assets until you’re 59 ½ years old (and for readers who are unaware, that’s when most retirement account assets become available without incurring a penalty). There are exceptions, such as the “55 rule,” which is when you are allowed to withdraw from your retirement account after separation from service if you are 55 or older. The account you can withdraw from must be linked to the job from which you’re separating, and there may be other stipulations attached. Check with your employer about what you are and aren’t allowed to do with your retirement plan. 

    Now, how often to distribute. This will depend on your comfort level, but some advisers suggest pulling six to 12 months’ of monthly expenses in a money-market account and then creating a paycheck effect. “Setting up monthly or biweekly distributions will create the feel of still working and help you stay within your budget,” said Brian Schmehil, a certified financial planner and managing director of wealth management for The Mather Group. 

    Also see: At 55 years old, I will have worked for 30 years — what are the pros and cons of retiring at that age? 

    Make sure the accounts you’re drawing from have shorter investment horizons and are in less risky investments, which will help you “continue to spend what you want to spend and accomplish your goals without having to be overly mindful of market volatility,” Schmehil said. This is in line with the bucket approach, which is when your assets are divided into various investment horizons. The least risky is in your shorter-term “bucket,” whereas the investments with the most risk are earmarked for the long term. 

    Having a monthly distribution schedule might help keep you in check. “I like to use monthly for most people,” said David Haas, a certified financial planner and owner of Cereus Financial Advisors. “It keeps them thinking about a monthly budget if they have a propensity to spend too much.” 

    Keep in mind how many variables can change over the course of your retirement. For example, if you switch up where your retirement money comes from — your taxable account, your retirement accounts, Social Security, etc. — your tax liabilities could change. Also, inflation might have an impact on your spending, or how quickly you draw down your distribution. Your risk tolerance may also transform, especially as you get older and you see your nest egg dwindle or you face market volatility. The frequency in which you take your money might change too, and if it does, that’s OK.

    Readers: Do you have suggestions for this reader? Add them in the comments below.

    Have a question about your own retirement savings? Email us at HelpMeRetire@marketwatch.com

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  • We’re 54, have $4.5 million in savings but don’t know how to withdraw it in retirement. What should we do?

    We’re 54, have $4.5 million in savings but don’t know how to withdraw it in retirement. What should we do?

    [ad_1]

    My wife and I are both 54 years old and have accumulated a taxable account totaling $2.3 million, and retirement assets totaling $2.2 million. We hope to retire at 55, and we are wondering about the best way to take our distributions. Clearly we will not touch the qualified money until we reach 59½.  

    I understand the 4% rule, but when it comes to taking the money, is it better to have a set monthly, quarterly, or annual withdrawal, or is it better to take a lump sum? I can see myself going crazy trying to time market tops in order to take distributions. I was planning to take money off the table after the peak in 2021. I purposely held out until 2022 for tax purposes and that backfired.  

    Is the best course of action to set it and forget on a monthly, quarterly, or annual basis?

    See: I’m 54 and the primary earner but ‘professionally, I am exhausted’ — we have $2.18 million but what about healthcare?

    Dear reader, 

    You touch on a really common issue retirees have: the distribution phase. 

    For decades, Americans are told to save, save, save for retirement, but then they get to the point where they need to start using the money…and that can be a complicated process. Retirees need to have an idea of how much to withdraw, what that distribution’s impact will be on the rest of their nest egg, what to expect come tax time and how not to use that money too quickly. 

    Like so much in personal finance, the answer to your question is highly dependent on individual circumstances. I’ll get to that in a minute. 

    First, a note about the 4% rule. This rule is meant to be a guideline. For some people, 4% is too much, while for others, it isn’t enough. Experts have argued its applicability, too — Morningstar, for example, said retirees could use a rate of 3.3% and would have a 90% probability of not running out of money in retirement. 

    Want more actionable tips for your retirement savings journey? Read MarketWatch’s “Retirement Hacks” column

    Before you commit to the 4% rule (which, of course, you can always adjust as the years go on), do a few quick calculations on how much you expect to spend in retirement — with a buffer included — and see what the percentage of your total retirement savings actually is. You may be able to retain more in your retirement assets than you expected. 

    If you’re still not sure on how much to take out, perhaps start a bit more conservatively in an effort to preserve your investments. The less money you take out, the more in your accounts that can continue to grow.

    Also, be aware of something called the “sequence of returns” risk, which is when your portfolio value drops too quickly at the beginning of your distribution journey. The result could be less than ideal for your account.

    Read: The Decumulation Drawdown: How spending became the big dilemma in retirement

    Pay attention to the tax implications of your decision, and consider consulting a qualified financial planner and/or an accountant to help you run the numbers. There are plenty of factors you have not included in your letter, such as if any of that money is in Roth accounts, and even then, a qualified financial planner can get into the granular details to help you make the most of your retirement spending and savings. You might find making Roth conversions to be beneficial as your taxable income drops — it’s also a way to avoid required minimum distributions down the road. 

    Also, you’re right not to touch your retirement assets until you’re 59 ½ years old (and for readers who are unaware, that’s when most retirement account assets become available without incurring a penalty). There are exceptions, such as the “55 rule,” which is when you are allowed to withdraw from your retirement account after separation from service if you are 55 or older. The account you can withdraw from must be linked to the job from which you’re separating, and there may be other stipulations attached. Check with your employer about what you are and aren’t allowed to do with your retirement plan. 

    Now, how often to distribute. This will depend on your comfort level, but some advisers suggest pulling six to 12 months’ of monthly expenses in a money-market account and then creating a paycheck effect. “Setting up monthly or biweekly distributions will create the feel of still working and help you stay within your budget,” said Brian Schmehil, a certified financial planner and managing director of wealth management for The Mather Group. 

    Also see: At 55 years old, I will have worked for 30 years — what are the pros and cons of retiring at that age? 

    Make sure the accounts you’re drawing from have shorter investment horizons and are in less risky investments, which will help you “continue to spend what you want to spend and accomplish your goals without having to be overly mindful of market volatility,” Schmehil said. This is in line with the bucket approach, which is when your assets are divided into various investment horizons. The least risky is in your shorter-term “bucket,” whereas the investments with the most risk are earmarked for the long term. 

    Having a monthly distribution schedule might help keep you in check. “I like to use monthly for most people,” said David Haas, a certified financial planner and owner of Cereus Financial Advisors. “It keeps them thinking about a monthly budget if they have a propensity to spend too much.” 

    Keep in mind how many variables can change over the course of your retirement. For example, if you switch up where your retirement money comes from — your taxable account, your retirement accounts, Social Security, etc. — your tax liabilities could change. Also, inflation might have an impact on your spending, or how quickly you draw down your distribution. Your risk tolerance may also transform, especially as you get older and you see your nest egg dwindle or you face market volatility. The frequency in which you take your money might change too, and if it does, that’s OK.

    Readers: Do you have suggestions for this reader? Add them in the comments below.

    Have a question about your own retirement savings? Email us at HelpMeRetire@marketwatch.com

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  • German lawmakers approve a plan to attract skilled workers to plug the country’s labor gap

    German lawmakers approve a plan to attract skilled workers to plug the country’s labor gap

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    Germany’s parliament has approved plans to attract more skilled workers to Europe’s biggest economy and help address labor shortages in a growing number of professions

    Nancy Faeser, Federal Minister of the Interior and Home Affairs, speaks during the debate on the skilled labor immigration bill at the plenary session in the German Bundestag in Berlin, Friday June 23, 2023. Germany’s parliament on Friday approved plans to attract more skilled workers to Europe’s biggest economy and help address labor shortages in a growing number of professions. (Bernd von Jutrczenka/dpa via AP)

    The Associated Press

    BERLIN — Germany’s parliament on Friday approved plans to attract more skilled workers to Europe’s biggest economy and help address labor shortages in a growing number of professions.

    Lawmakers voted 388-234 in favor of the legislation, with 31 abstentions. It foresees a “points system” taking into account professional experience and other factors, along the lines of systems already used by countries such as Canada. It will ease entry rules for information technology specialists who lack university degrees but have other qualifications.

    Asylum seekers who arrived before March 29 and have both qualifications and a job offer can get a residence permit as a professional if they withdraw their asylum applications — eliminating the need to leave the country and apply anew for a work permit. Highly skilled workers will be allowed to bring more relatives to Germany, so long as they can support them financially.

    Germany has grappled for years with the need to attract more skilled workers from outside the European Union. Experts say the country needs about 400,000 skilled immigrants each year as its aging workforce shrinks.

    The national labor agency said earlier this month that an annual analysis showed 200 out of about 1,200 professions it surveyed had labor shortages last year, up from 148 the previous year. It said that bus drivers, service jobs in hotels and restaurants and jobs in metalwork were among those that joined the list.

    Other professions where Germany is struggling to fill jobs are in nursing care, child care, the construction industry and automotive technology, along with truck drivers, architects, pharmacists and information technology specialists.

    “The shortage of skilled labor is considered one of the biggest brakes on economic growth in Germany, and skilled workers are missing everywhere,” Interior Minister Nancy Faeser told lawmakers. She described the legislation as “a huge step for the future of our country.”

    Andrea Lindholz, a senior lawmaker with the main conservative opposition bloc, decried the plan as one that would above all bring in low-skilled people, allow migrants who are supposed to leave to stay and reduce German language requirements.

    She asserted that the government is “creating new incentives for illegal immigration to Germany.”

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  • Apple engaged in ‘coercive’ interviews and other anti-union tactics at New York store, judge rules

    Apple engaged in ‘coercive’ interviews and other anti-union tactics at New York store, judge rules

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    A U.S. labor board judge has ruled that Apple illegally subjected employees to “coercive” interviews and interfered with distribution of union leaflets at a New York City Apple Store

    SAN FRANCISCO — Apple illegally subjected employees to “coercive” interviews and interfered with the distribution of union leaflets at a New York City Apple Store, a U.S. labor board judge ruled Tuesday.

    The finding represents the first time that an administrative law judge at the National Labor Relations Board, a federal agency, has ruled against Apple. But it is not the last word on the subject; Apple is free to appeal the ruling to the agency’s full board or to federal appeals court.

    Apple had no comment on the ruling Wednesday.

    Lauren Esposito, the judge in the case, found that an Apple Store supervisor at the World Trade Center location had improperly asked an employee about his discussions with other workers about wage levels and about the employee’s opinion of unionization efforts across the company. Such activities ran afoul of U.S. labor law that protects the right of workers to organize, the judge wrote.

    Similarly, Esposito ruled that Apple managers had singled out union literature, which is legally permitted in non-working spaces such as break rooms, for removal and disposal that sometimes involved shredding pamphlets.

    The ruling requires Apple to “cease and desist” from activities that the judge found to violate established labor protections and to post workplace notices in the company’s name acknowledging the court’s findings, informing employees of their labor rights and pledging that the company will honor them.

    Apple faces four other labor complaints now pending before National Labor Relations Board judges.

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  • Sanders launches Senate probe into Amazon’s safety practices and asks workers to share stories

    Sanders launches Senate probe into Amazon’s safety practices and asks workers to share stories

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    NEW YORK — Vermont Sen. Bernie Sanders has opened a Senate investigation into Amazon’s warehouse safety practices, the latest in a series of probes he’s initiated against big corporations in his role as chairman of a committee that oversees health and labor issues.

    Sanders, who has run for president twice and spent a political lifetime fighting corporations and monied interests over policies that he believes hurt the working class, sent a letter to Amazon CEO Andy Jassy on Tuesday accusing the e-commerce giant of “egregious health and safety violations.”

    “The company’s quest for profits at all costs has led to unsafe physical environments, intense pressure to work at unsustainable rates, and inadequate medical attention for tens of thousands of Amazon workers every year,” Sanders, who chairs the Senate Health, Education, Labor and Pensions Committee, wrote in the letter.

    The 81-year-old progressive senator also accused the company, which operates a vast network of warehouses across the country, of failing to adopt “adequate worker protections” because of a corporate culture that treats workers as disposable.

    Amazon spokesperson Steve Kelly said Tuesday morning the company had received Sanders’ letter and was in the early stages of reviewing it. Later in the day, Kelly said the company strongly disagreed with the senator’s assertions.

    “We take the safety and health of our employees very seriously,” Kelly said. “There will always be ways to improve, but we’re proud of the progress we’ve made, which includes a 23% reduction in recordable injuries across our U.S. operations since 2019.”

    Kelly also noted the company has invested more than $1 billion into safety initiatives in the last four years and will continue investing in this area.

    Injuries at Amazon have typically been higher compared with its peers in the industry, which critics and labor safety experts blame on the company’s fast-paced warehouses that track productivity and allow customers to get their packages quickly. Labor groups have seized on the issue in an effort to organize workers, some of which has borne fruit but hasn’t led to a massive wave of unionization.

    In his letter, Sanders pointed to citations Amazon has received from the Occupational Safety and Health Administration for workplace safety violations, which the company says it has appealed. He also pointed out another investigation by the U.S. Attorney’s Office for the Southern District of New York into what that office called “possible fraudulent conduct” by Amazon designed to hide injuries from OSHA and others.

    According to the company, injuries across its U.S. operations — which include lower back injuries, strains and sprains — took a slight dip last year, clocking in at 6.7% per 200,000 working hours. But those figures were still higher compared to 2020.

    In his letter, Sanders also cited a report from a coalition of three labor unions, which said serious injuries at Amazon were more than double the rest of the warehouse sector last year. Amazon disputes some of the findings.

    “There will always be ways for our critics to splice data to suit their narrative, but the fact is, we’ve made progress and our numbers clearly show it,” Kelly said.

    The investigation into Amazon follows a similar probe from the Senate committee into Starbucks and pharmaceutical giant Moderna. As part of the Amazon investigation, the committee is asking Amazon workers to submit stories about their time at the company through a website. The committee says the submissions will remain confidential.

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  • Biden hopes Su’s role in dockworker deal can sway Democratic holdouts to confirm her as labor chief

    Biden hopes Su’s role in dockworker deal can sway Democratic holdouts to confirm her as labor chief

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    WASHINGTON — The White House is hoping that Julie Su’s role in brokering a deal between West Coast dockworkers and shippers will provide fresh momentum for the Senate to act on her long-stalled nomination to be labor secretary.

    Su flew to San Francisco to help seal the tentative agreement after a lengthy dispute that had led to sporadic disruptions at some of the nation’s largest ports. President Joe Biden asked Su, a civil rights lawyer who was deputy labor secretary when tapped for the Cabinet job in February, to join the negotiations, according to a White House official, in an effort to stave off potential work stoppages as the bargaining sessions grew tense.

    Biden thanked Su, the department’s acting head, and said he had relied on her “deep expertise and judgment” to move the negotiations along.

    “This is going to have a real positive impact on trade,” Biden said. “She’s shown she’s a true leader and I think she should be confirmed.”

    Su’s role in finalizing the deal was touted by both the International Longshore and Warehouse Union and the Pacific Maritime Association. Senior White House officials were hopeful it could help address two of Su’s vulnerabilities among wavering senators: that she had minimal experience in negotiations between workers and management, and perceptions that she was anti-business. In addition to the maritime association, the U.S. Chamber of Commerce praised Su for “staying committed to the process and helping both parties reach this agreement.”

    White House officials hope her participation could sway Senate holdouts who had questioned her experience in negotiations between workers and management and wondered whether she was anti-business.

    Su’s nomination cleared a key Senate committee in April, but with no Republicans on record supporting her, the Biden administration and her backers have scrambled to lock down 50 Democratic votes needed to confirm her. For weeks, several moderate Democrats have refused to say whether they would vote for her.

    There’s deep skepticism that Sen. Joe Manchin, D-W.Va., will vote “yes,” particularly considering that this week he rejected three Biden nominees endorsed by all other Democrats but uniformly opposed by GOP senators. Sen. Kyrsten Sinema, an Arizona independent, is an important ally of business groups and some Su supporters have been concerned she could reject a nominee viewed as too close to unions.

    Su has come under criticism from business organizations about her stewardship of California’s labor department.

    She backed a now-overturned law that would have required app-based ride hailing and delivery companies such as Uber and Lyft, as well as trucking businesses, to treat their workers as employees, providing paid sick leave and unemployment insurance, for example, rather than as independent contractors.

    Su has also faced blame for problems at the agency during the pandemic when unprecedented numbers of people applying for unemployment benefits faced long wait times and the state paid out billions of dollars in fraudulent claims.

    Illinois Sen. Dick Durbin, the second-ranking Democrat, said this week that he was still trying to win over two or three more Democrats.

    “They’ve said probably no, but not never,” Durbin said. “So we’re talking to them.”

    Sen. Jon Tester, D-Mont., who has not said where he stands, said Thursday that he was “taking input from folks.” But he also expressed frustration with the situation. “I wish we would have a vote so people would vote and move on,” Tester said. “Up or down, whatever it might be.”

    Installing Su is a priority for unions that are vital Biden allies and for Asian American advocacy groups, miffed that his administration was the first in 20 years not to have an Asian American in the Cabinet as secretary. Su, a daughter of Chinese immigrants, has spoken emotionally about her mother emigrating to the United States on a cargo ship, unable to pay for a passenger ticket.

    Top White House officials have been holding daily strategy calls about how to win her confirmation. Chief of staff Jeff Zients and Louisa Terrell, director of legislative affairs, speak regularly with Senate Majority Leader Chuck Schumer, D-N.Y., on the matter. Biden’s first labor secretary, Marty Walsh, has advocated for Su in private with senators.

    Republicans are working to foment opposition. Sen. Bill Cassidy, R-La., wrote Su this week about the stalled dockworkers negotiations before a deal was announced, asserting that she had “no clear track record of working with labor and management to end labor disputes.”

    The tentative agreement, which would affect 22,000 dockworkers at 29 ports along the West Coast, must be ratified by both sides. They did not disclose terms of the deal. Dockworkers have operated without a contract since July.

    Su said in a statement that the pact showed “once again that collective bargaining — though sometimes difficult — works.”

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  • U.S. jobless claims leap to nearly two-year high of 261,000

    U.S. jobless claims leap to nearly two-year high of 261,000

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    The numbers: The number of people who applied for U.S. unemployment benefits in early June jumped to a nearly two-year high of 261,000, but most of the increase took place in just two states: Ohio and California.

    New jobless claims in the seven days ended June 3 climbed by 28,000 from the prior week, the Labor Department said Thursday. The figures are seasonally adjusted.

    Layoffs rose early in the year and pushed jobless claims above 200,000, but until this week, Jobless claims has barely changed since the spring and indicated that layoffs remained low.

    Key details: Of the 53 U.S. states and territories that report jobless claims, 27 showed an increase last week. The other 26 posted a decline.

    Most of the increase was in California and Ohio. Minnesota also saw a sizable increase.

    Actual or unadjusted claims surged by 6,345 in Ohio to 16,717 — an unusually large gain.

    And they rose by 5,173 to 48,750 in California, the state with by far the largest number of jobless claims. That could reflect tech-related layoffs.

    Yet lots of states, including California, have suffered from a flood of fraudulent claims since the pandemic. Massive fraud in Massachusetts, for instanced, skewed the national jobless claims totals from March through May.

    Before seasonal adjustments, new U.S. jobless claims were a much smaller 219,391 last week. That was up from 208,856 in the prior week.

    The Memorial Day holiday may have also influenced new filings. Some people either delay or accelerate their claims applications around a holiday.

    The number of people collecting unemployment benefits in the U.S., meanwhile, fell by 37,000 to 1.76 million.

    A gradual increase in these so-called continuing claims over the past year suggests it’s taking longer for people who lose their jobs to find new ones.

    Big picture: Unemployment claims typically begin to rise when the economy is deteriorating and a recession is approaching. The latest increase could be a red flag, but it will take a series of higher readings to cement the case.

    Still, the increase in claims could give the Federal Reserve more reason to “skip” another increase in U.S. interest rates when senior officials meet next week.

    Wall Street widely expects the Fed to stay put to give it more time to evaluate the economy and gauge how quickly inflation is slowing after a series of rate hikes over the past year. The Fed hopes the labor market will cool off further and reduce the upward pressure on wages.

    Looking ahead: “The latest reading reflects a holiday-shortened week, which ought to raise suspicions that the big move was more noise than signal,” said chief economist Stephen Stanley of Santander Capital Markets. “I am eager to see next week’s reading before I draw any conclusions.”

    “Rising initial jobless claims is a classic leading indicator of a recession, but a one-week jump is too little data to call a trend,” said Bill Adams, chief economist at Comerica.

    Market reaction: The Dow Jones Industrial Average
    DJIA,
    +0.44%
    and S&P 500
    SPX,
    +0.40%
    were narrowly mixed in Thursday trades.

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  • GameStop fires CEO, elects Ryan Cohen as executive chairman; stock plunges

    GameStop fires CEO, elects Ryan Cohen as executive chairman; stock plunges

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    GameStop Corp. fired Chief Executive Matthew Furlong on Wednesday and said that its board had elected activist investor Ryan Cohen as its executive chairman, effective immediately.

    Shares of the videogame retailer and meme stock sank 19% after hours following the brief press release detailing the move. That release did not offer a reason for Furlong’s firing and was made shortly ahead of the chain’s quarterly results.

    GameStop
    GME,
    +5.75%    ,
    in its earnings release, said it would not be holding a conference call to discuss those results. But in a filing detailing those financials, the company said Cohen’s leadership would be good for shareholders.

    “We believe the combination of these efforts to stabilize and optimize our core business and achieve sustained profitability while also focusing on capital allocation under Mr. Cohen’s leadership will further unlock long-term value creation for our stockholders,” GameStop said.

    Cohen, the co-founder and former CEO of online pet-supplies retailer Chewy Inc.
    CHWY,
    -4.10%    ,
    became GameStop’s board chairman in 2021, after joining the board that year and building up a stake in the company earlier. His influence at the company, as the Wall Street Journal reported in 2021, led to feuding with management and an explosion in popularity among the meme traders who helped launch GameStop’s stock higher. He also amassed and then sold off a stake in Bed Bath & Beyond, the home-goods retailer that is in the process of closing up shop.

    GameStop announced the move on Wednesday as it struggles to put up a consistent profit and tries to cut costs. Under Cohen’s control, the company has redoubled its focus on physical stores — as more of the gaming industry becomes more online and mobile — after initially making a bigger push toward e-commerce.

    GameStop, in a separate filing on Wednesday, said Cohen’s responsibilities would include “capital allocation, evaluating potential investments and acquisitions, and overseeing the managers of the company’s holdings.”

    In that filing, GameStop said that Furlong was fired without cause. According to his offer letter in 2021, Furlong is due any unvested stock that would have vested in the next six months. According to the terms outlined in that letter, Furlong would have been eligible to receive nearly $2.5 million in stock in August. He’ll also receive $100,000 in base salary. The filing also said Furlong had resigned as a company director.

    The company also said it appointed Mark Robinson as its general manager and principal executive officer. Robinson has worked as vice president and general counsel at the company since January 2022, and held other roles at GameStop since 2015, the filing said.

    GameStop also said it appointed Alain Attal as the lead independent director of the board and dissolved the Strategic Planning and Capital Allocation Committee.

    For its first quarter, GameStop reported a net loss of $50.5 million, or 17 cents a share — far narrower than the $157.9 million, or 52 cents a share, in the same quarter last year. Net sales were $1.24 billion, down from $1.38 billion in the prior-year quarter. GameStop ended the quarter with cash and cash equivalents of $1.06 billion.

    Popular videogames, such as “The Legend of Zelda: Tears of the Kingdom” and “Hogwarts Legacy,” seem likely to help GameStop’s sales up ahead. And the company has cut costs in an effort to improve profitability.

    The company reported a profit in the prior quarter, helped by holiday-season demand. Still, the two analysts polled by FactSet don’t expect another profitable quarter until this year’s holiday quarter.

    Wedbush analyst Michael Pachter, in a note last week, noted that broader challenges for the retailer include “a shift towards digital, mobile and subscription software (and away from the traditional packaged business).”

    GameStop shares are down 29% over the past 12 months. By comparison, the S&P 500 Index
    SPX,
    -0.38%
    is up 2.7% over that period.

    Jeremy Owens contributed to this story.

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  • Striking Faculty and Grad Students Secured Big Pay Raises This Academic Year

    Striking Faculty and Grad Students Secured Big Pay Raises This Academic Year

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    Higher-ed unions had their most active academic year in recent memory. A series of strikes led to changes that graduate students and faculty members touted as big wins: better wages, more benefits, and improved working conditions.

    The work stoppages, which often lasted weeks, disrupted campuses. Many graduate students and faculty weren’t teaching their classes; in some cases, final exams and grades were delayed. Things got so bad in New Jersey, for instance, that the governor felt the need to step in and mediate between the state’s flagship public university and its faculty union in hopes of staving off a court battle.

    The conflicts stemmed from a convergence of trends in higher education and the broader U.S. economy. Among them are colleges’ growing reliance on contingent faculty and a cutthroat academic job market, as well as soaring living costs and a burgeoning labor movement.

    Here’s a rundown of six institutions where strikes this past year resulted in pay raises for graduate students and faculty members.

    University of California

    A standoff across the University of California system went on for six weeks, from early November to late December. The UC strike of 48,000 graduate students, postdocs, and researchers, the largest in higher-ed history, proved influential — and prompted even more union activity on campuses this spring.

    After a 40-day work stoppage, the unions secured base pay increases ranging from 55 to 80 percent for academic employees and 25 to 80 percent for graduate-student researchers. For example, for a first-year teaching assistant, the minimum annual salary will increase to $36,000 from $25,000 by 2024. However, some student workers have argued that the cost of living near many UC campuses remains significantly higher than those minimums.

    “Our members stood up to show the university that academic workers are vital to UC’s success,” said Ray Curry, then-president of the United Auto Workers, which represents the grad students and postdocs, in a statement. “They deserve nothing less than a contract that reflects the important role they play and the reality of working in cities with extremely high costs of living.”

    The New School

    Shortly after UC graduate students and postdocs walked off the job, so did part-time faculty at The New School, a private liberal-arts university in New York City. About 90 percent of the institution’s faculty are adjuncts or lecturers.

    New School faculty said their wages hadn’t kept up with inflation for years. Classes came to a standstill. Students occupied the university center. Parents threatened a lawsuit over the disruptions.

    The union reached a five-year deal three weeks later with the university. In the first year, some of the lowest-paid adjuncts will see their pay go up by about a third.

    For a faculty member teaching studio or lab courses that add up to 90 contact hours — a measure of time spent in the classroom with students — minimum pay will increase to nearly $13,000, from about $8,600, by fall 2026. Instructors will also be paid for their out-of-classroom work; the stipend will start at $400 per course and rise to $800.

    University of Illinois at Chicago

    In January, faculty at the University of Illinois at Chicago fought for increased wages and more job security. After a six-day strike, the contract was ratified.

    The minimum salary for nontenured faculty increased to $60,000 from $51,000; for tenured faculty, the minimum salary rose to $71,500 from $60,000. Union members also received a one-time bonus of $2,500 to adjust for inflation.

    Faculty also lobbied for increased mental-health support and free psychological testing for students. As a result of bargaining, the university has promised to create a strategic plan focused on mental health.

    Eastern Illinois University

    After the University of Illinois at Chicago’s strike came a work stoppage at Eastern Illinois University. Unions at five of the state’s public colleges went on strike this academic year.

    The Eastern Illinois union is made up of around 450 workers, including professors and academic advisors. Students picketed alongside instructors in solidarity.

    After a six-day strike, faculty received a 15-percent raise in pay over four years and, for the first time, paid parental leave.

    Temple University

    At Temple University, in Philadelphia, a bitter fight dragged on for six weeks. It started with a walkout in late January by the Temple University Graduate Students’ Association, which represents about 750 student workers and research assistants.

    After a week of disruption, the university said it would take away tuition and health-care benefits from the striking students. By mid-March, the sides came to an agreement.

    The new four-year contract standardized pay across fields and will increase graduate students’ minimum salary to $27,000, from the current range of $19,292 to $20,840, by the fall of 2025. The university also agreed to improve parental and bereavement leave, and to start a committee to review student workloads.

    Rutgers University

    Roughly 9,000 instructors at Rutgers went on strike in mid-April for the first time in the university’s history. Gov. Phil Murphy, a Democrat, was so concerned about how the strike could affect the university’s nearly 70,000 students that he called both sides to the state capital for a “productive dialogue.” The strike ended after five days.

    Adjunct professors came away with a 43-percent raise. Graduate students saw their pay go up by more than a third. They were also guaranteed five years of funding.

    “In important ways — especially in confronting precarity and poverty wages in higher education — we have set a new standard,” the union said in a statement.

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    Emma Hall and Zachary Schermele

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  • Qatar minister elected to head UN labor conference following World Cup scrutiny

    Qatar minister elected to head UN labor conference following World Cup scrutiny

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    The labor minister of Qatar has been elected as president of the United Nations labor agency’s annual conference

    BERLIN — The labor minister of Qatar, which faced intense scrutiny over its treatment of migrant workers in the run-up to last year’s World Cup soccer tournament, was elected Monday as the president of the United Nations labor agency’s annual conference.

    Asian and Pacific nations proposed Ali bin Samikh al-Marri to lead the International Labor Agency’s two-week conference in Geneva. Regional groups take turns nominating the meeting’s chair.

    After Qatar was named host of the 2022 World Cup, the labor conditions in a country where over 2 million migrants work in everything from construction jobs to service industries came under a spotlight.

    Rights groups said workers faced unsafe working conditions, including extreme heat that had caused deaths, as well as exploitation by employers, despite reforms instituted by Qatar.

    Qatari officials say stronger regulations over work conditions have been imposed under the reforms. They have said three workers died in workplace accidents connected to the construction of new stadiums for the World Cup over the past decade, along with 37 other stadium workers who died outside the workplace during that time.

    They argue that accident rates at the stadiums are comparable to others around the world.

    The International Labor Conference brings together government, employer and worker delegates from the agency’s 187 member countries.

    Al-Marri was elected without dissent to preside over the gathering. The head of delegates representing workers acknowledged Qatar’s reforms but also noted that after the World Cup, labor unions expressed had expressed doubts about “if there was sufficient commitment to the necessary further implementation to address the continuous plight of migrant workers.”

    The delegate, Catelene Passchier, said there had been “extensive conversations” in recent weeks, resulting in “a joint understanding that re-engagement and speeding-up of the reforms and their implementation are necessary” to address outstanding issues.

    In light of that, she said, “the workers’ group can accept the nomination of Qatar as president of the conference.”

    Al-Marri thanked delegates for their confidence and pointed to “fundamental” changes to labor protection in Qatar.

    “We know that there is further work that we need to achieve, and we are committed to doing so,” he said, adding that his country had invited two global union federations to discuss “further labor protection.”

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  • No kidding: California overtime law threatens use of grazing goats to prevent wildfires

    No kidding: California overtime law threatens use of grazing goats to prevent wildfires

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    WEST SACRAMENTO, Calif. — Hundreds of goats munch on long blades of yellow grass on a hillside next to a sprawling townhouse complex. They were hired to clear vegetation that could fuel wildfires as temperatures rise this summer.

    These voracious herbivores are in high demand to devour weeds and shrubs that have proliferated across California after a drought-busting winter of heavy rain and snow.

    “It’s a huge fuel source. If it was left untamed, it can grow very high. And then when the summer dries everything out, it’s perfect fuel for a fire,” said Jason Poupolo, parks superintendent for the city of West Sacramento, where goats grazed on a recent afternoon.

    Targeted grazing is part of California’s strategy to reduce wildfire risk because goats can eat a wide variety of vegetation and graze in steep, rocky terrain that’s hard to access. Backers say they’re an eco-friendly alternative to chemical herbicides or weed-whacking machines that are make noise and pollution.

    But new state labor regulations are making it more expensive to provide goat-grazing services, and herding companies say the rules threaten to put them out of business. The changes could raise the monthly salary of herders from about $3,730 to $14,000, according to the California Farm Bureau.

    Companies typically put about one herder in charge of 400 goats. Many of the herders in California are from Peru and live in employer-provided trailers near grazing sites. Labor advocates say the state should investigate the working and living conditions of goatherders before making changes to the law, especially since the state is funding goat-grazing to reduce wildfire risk.

    California is investing heavily in wildfire prevention after the state was ravaged by several years of destructive flames that scorched millions of acres, destroyed thousands of homes and killed dozens of people. Goats have been used to clear fuels around Lake Oroville, along Highway 101, and near the Ronald Reagan Presidential Library.

    “My phone rings off the hook this time of year,” said Tim Arrowsmith, owner of Western Grazers, which is providing grazing services to West Sacramento. “The demand has grown year after year after year.”

    His company, based in the Northern California city of Red Bluff, has about 4,000 goats for hire to clear vegetation for government agencies and private landowners across Northern California. Without a fix to the new regulations, “we will be forced to sell these goats to slaughter and to the auction yards, and we’ll be forced out of business and probably file for bankruptcy,” Arrowsmith said.

    Companies have historically been allowed to pay goat and sheepherders a monthly minimum salary rather than an hourly minimum wage, because their jobs require them to be on-call 24 hours a day, seven days a week. But legislation signed in 2016 also entitles them to overtime pay. It effectively boosted the herders’ minimum monthly pay from $1,955 in 2019 to $3,730 this year. It’s set to hit $4,381 in 2025, according to the California Department of Industrial Relations.

    So far the herding companies, which have sued over the law, have passed along most of the increased labor costs to their customers.

    But in January, those labor costs are set to jump sharply again. Goatherders and sheepherders have always followed the same set of labor rules last year. But a state agency has ruled that’s no longer allowed, meaning goatherders would be subject to the same labor laws as other farmworkers.

    That would mean goatherders would be entitled to ever higher pay — up to $14,000 a month. Last year a budget trailer bill delayed that pay requirement for one year, but it’s set to take affect on Jan. 1 if nothing is done to change the law.

    Goatherding companies say they can’t afford to pay herders that much. They would have to drastically raise their rates, which would make it unaffordable to provide goat grazing services.

    “We fully support increasing wages for herders, but $14,000 a month is not realistic. So we need to address that in order to allow these goat-grazing operations to exist,” said Brian Shobe, deputy policy director for the California Climate and Agriculture Network.

    The goat-grazing industry is pushing the Legislature to approve legislation that would treat goatherders the same as sheepherders. A bill to do so hasn’t yet received a public hearing.

    Lorena Gonzalez Fletcher, who heads the California Labor Federation, said goatherders are among the “most vulnerable workers in America” because they are on temporary work visas and can be fired and sent back to their home country anytime. Most of them work in isolation, speak minimal English and don’t have the same rights as Americans or green-card holders.

    “We have a responsibility as a public to ensure that every worker who’s working in California is treated with dignity and respect, and that includes these goatherders,” said Gonzalez Fletcher, who sponsored the farmworker overtime bill when she was a state Assemblywoman representing San Diego.

    Arrowsmith employs seven goatherders from Peru under the H-2A visa program for temporary farmworkers. He said the herders are paid about $4,000 a month and don’t have to pay for food, housing or phones.

    “I can’t pay $14,000 a month to an employee starting Jan. 1. There’s just not enough money. The cities can’t absorb that kind of cost,” Arrowsmith said. “What’s at stake for the public is your house could burn up because we can’t fire-mitigate.”

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  • What you should do right now to prepare for a debt-ceiling breach

    What you should do right now to prepare for a debt-ceiling breach

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    If the U.S. government cannot pay all its bills because of a debt-ceiling impasse, household borrowing costs could soar, the job market could shed millions of jobs and stock-market valuations could shrink, according to forecasts.

    The consequences of a prolonged default could be grim, according to Moody’s Analytics. The projected fallout from a brief default is less severe but still enough to push an “already fragile” economy into a mild recession, Moody’s says.

    On Wednesday, Treasury Secretary Janet Yellen said it’s “almost certain” that the Treasury will run out of resources in early June. She also said she would provide a new update on the debt-limit deadline “pretty soon.”

    For all the uncertainties, financial experts say there are ways individuals can prepare. Start by making sure your deposits are in accounts backed by the Federal Deposit Insurance Corp., and think hard about rate-sensitive purchases like a car or a house.

    It’s important for people to have a plan in case there is a default, said Rob Williams, managing director of financial planning, retirement income and wealth management at the Schwab Center for Financial Research, a division of Charles Schwab Corp.
    SCHW,
    -1.34%    .

    “On Wednesday, Treasury Secretary Janet Yellen said it’s ‘almost certain’ that the Treasury will run out of resources in early June.”

    “Having a financial plan in place that looks at the long and short term is the best way to prepare for the debt ceiling or any other crisis,” he said.

    There is still widespread expectation that Congress will strike a political deal that lifts the federal government’s $31 trillion borrowing limit. President Joe Biden and House Speaker Kevin McCarthy met again on Monday, and more talks are planned.

    McCarthy on Wednesday said he “firmly believe[d]” the sides would reach a deal avoiding default.

    But the window of time in which to act is getting smaller. It’s “highly likely” that the government will get to the point where it cannot pay all its bills and debt obligations in early June — possibly as early as June 1, Yellen said this week.

    Meanwhile, new Federal Reserve figures offer a reminder that Americans’ personal finances over the last year have been under pressure, even as inflation rates retreat slowly.

    More than one-third of people in the U.S. (35%) said they were worse off in 2022 than in 2021, according to the Fed’s annual look at economic well-being, released Monday.

    That’s the largest percentage of people saying they were worse off since central bank researchers started asking the question nearly a decade ago.

    “If there ever was a time for a rainy-day fund, this is it. But it’s not going to be able to help a lot of consumers,” said Rachel Gittleman, financial services outreach manager for the Consumer Federation of America.

    For example, Social Security payments and payments to veterans could be delayed in the event of a default, she said. “There will be a lot of consumers who will be in an impossible financial situation,” Gittleman said.

    If the government does not raise the debt ceiling, household borrowing costs could soar, the job market could shed millions of jobs and stock-market valuations could shrink, according to forecasts.


    Getty Images/iStockphoto

    Make sure your money is safe

    The FDIC guarantees deposits up to $250,000 on accounts including checking, savings and certificates of deposit. That won’t change in the case of any default, an FDIC spokesperson told MarketWatch.

    Deposit-insurance coverage came into hard focus in early spring when Silicon Valley Bank and Signature Bank failed, putting other regional banks under pressure as many customers moved their money into bigger banks.

    If economic conditions deteriorate after a default, Gittleman said, people will want assurance their money is safe. If you haven’t taken any of the recent bank failures as a sign to put money in an FDIC-insured account, “this would be the time,” she said.

    Start cutting costs quickly

    During the early days of the pandemic when there were millions of job losses, many people had to quickly cut back on or delay regular expenses.

    If a default puts people in an economic vise, Gittleman said they may need to be ready to shut down nonessential recurring payments and talk with their lenders and credit-card companies. “It’s thinking holistically about all of your financial expectations and where you can possibly either get forbearance or some leniency and ask for some help,” she said.

    Credit-card debt reached $986 billion in the first quarter, according to the Federal Reserve Bank of New York, and delinquencies on credit cards and car loans continued to move higher after pandemic lows.

    Rate-sensitive purchases

    After more than a year of rising interest rates, it’s already a tough time to finance a major purchase. On Tuesday, the 30-year fixed mortgage rate climbed higher than 7% for the third time this year.

    Any default lasting at least a month would push the 30-year mortgage up to 8.4% in September and price out hundreds of thousands of buyers, according to Zillow
    Z,
    -0.83%    .

    But that is no reason to speed up a home purchase, said Daniel Milan, founder and managing partner of Cornerstone Financial Services.

    “Any default lasting at least a month would push the 30-year mortgage up to 8.4% in September and price out hundreds of thousands of buyers, according to Zillow.”

    The Federal Reserve doesn’t set mortgage rates, but its policies influence their direction. The big questions are when the central bank will stop increasing its benchmark rate and when it will begin to reduce the rate.

    “The odds of a rate cut outweigh the fear or the rush into buying a home now because of the debt-ceiling crisis,” Milan said.

    But the Schwab Center’s Williams noted that trying to time a major financial decision around market and political events is a difficult task.

    Financial decisions are a mix of math and emotions, even though many people tend to focus more on the math, he said. That’s why it’s important to figure out a financial plan. Often the best course is to stick to your plan and say, “I’m not going to make major changes in the face of market news,” Williams said.

    Portfolio protection

    The Dow Jones Industrial Average
    DJIA,
    -0.77%    ,
    the S&P 500
    SPX,
    -0.73%
    and the Nasdaq Composite
    COMP,
    -0.61%
    closed sharply lower in volatile trading on Tuesday and opened lower and have stayed lower in Wednesday trading.

    Tuesday marked the Dow’s third straight trading-day loss. By Wednesday afternoon, the index had shed more than 200 points.

    The yields on short-term Treasury debt
    TMUBMUSD01M,
    5.666%
    maturing in early June are pushing toward 6% amid continued uncertainty about whether a debt-ceiling resolution can come together fast enough to avoid a government default. Bond prices and yields move in opposite directions, reflecting less investor appetite for debt.

    There’s no one rule for preparing an investment portfolio for a debt default, financial advisers said. But older retired investors are in a trickier spot — especially in relation to the prospect of delayed Social Security checks — compared with younger investors who have more time to bounce back from adverse events.

    “‘We continue to urge clients to make sure we know about any short-term cash needs so that those funds are not at risk.’”


    — Lisa A.K. Kirchenbauer, founder and president of Omega Wealth Management

    Cash investments have proven attractive in rocky times. But the risk of a debt default could make a heftier cash allocation even more important for older investors, financial advisers said.

    “We continue to urge clients to make sure we know about any short-term cash needs so that those funds are not at risk,” said Lisa A.K. Kirchenbauer, founder and president of Omega Wealth Management.

    Kirchenbauer said she’s starting to hear from clients about debt-ceiling concerns. “I am making sure that larger [required minimum distributions] are in cash for 2023 now, before anything bad happens in the markets.”

    Required minimum distributions are the minimum yearly amounts that have to be pulled out of qualified retirement accounts once the owner reaches a certain age, currently 73.

    Preparing for any default is a mental exercise as much as asset allocation, said Amy Hubble, principal investment adviser with Radix Financial. If there’s been no change in a person’s personal circumstances, like job status, income needs or retirement timeline, they should avoid getting sidetracked by short-term issues, she said.

    “There are only a small handful of things we can actually control when investing,” Hubble added. “So my advice is always to focus on that: keeping costs low, staying diversified, managing tax-recognition timing and avoiding stupid emotion-driven actions.”

    Read also: BlackRock’s Rick Rieder sees ‘epic’ cash on sidelines as he takes lead role on new ETF

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  • Meta begins third round of layoffs: reports

    Meta begins third round of layoffs: reports

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    Meta Platforms Inc. has started to execute on its latest round of layoffs, according to reports.

    The third round of cuts is part of a plan that Meta
    META,
    +3.70%
    Chief Executive Mark Zuckerberg announced in March in an effort to further slash costs at the social-media company. He said at the time that Meta would lay off about 10,000 workers while closing roughly 5,000 additional roles for which the company had yet to make hires.

    The current rounds of cuts build on at least 11,000 layoffs that were announced last fall.

    See more: Meta steadily rolls out 3-part round of layoffs

    CNBC reported Wednesday that Meta employees in user experience, marketing and recruiting roles indicated they were affected by the current round of cuts.

    Zuckerberg said in a March note to employees, which was also shared as a company blog post, that the company planned to make restructuring moves in its technology groups in late April before making changes to the business groups in late May.

    Reuters reported that the latest layoffs mainly affect employees in non-engineering positions, part of Zuckerberg’s goal of boosting the ratio of engineers at Meta relative to other positions.

    Don’t miss: Meta’s ‘outstanding’ stock rally can keep roaring, analyst says in upgrade

    Meta declined to comment in response to a MarketWatch request for confirmation of the latest layoffs.

    The company is in the midst of what Zuckerberg has dubbed a “year of efficiency,” which comes in response to investor concern last fall about high spending levels at the company alongside the backdrop of declining revenue. Meta has since become arguably the most aggressive of the largest public technology companies in its cost-cutting efforts.

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  • 3 changes to Social Security benefits we could see in the future

    3 changes to Social Security benefits we could see in the future

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    Social Security has been a vital safety net for retirees, disabled individuals, and surviving family members for decades. However, the program is facing financial challenges that may necessitate changes in the coming years. Let’s explore three potential ways Social Security benefits could change in the future.

    Adjustments to the full retirement age

    One possible change could involve adjusting the full retirement age (FRA), which is the age at which individuals can receive full Social Security benefits. Currently set at 67 for those born in 1960 or later, some experts argue that increasing the full retirement age could help address the program’s funding shortfall. However, this change could mean longer working lives for future retirees and careful consideration of how it impacts individuals with physically demanding jobs or limited job opportunities later in life.

    Read: Does it matter if Social Security checks are delayed?

    This change would also result in a smaller benefit for the earliest filers at age 62, since the reductions are based on the amount of time between your filing age and the Full Retirement Age. If the FRA is increased to 68, for example, filing at age 62 would result in a benefit that is only 65% of your Full Retirement Age benefit amount.

    In addition, unless the maximum filing age is adjusted, Delayed Retirement Credits (DRCs) would also be limited under such a scenario. Currently when your FRA is 67 you have the opportunity to increase your benefit by 24% (8% per year for DRCs), but if the FRA is 68, the increase would only be 16% at maximum.

    Means-testing benefits

    Another potential change is means-testing Social Security benefits. Means-testing would involve adjusting benefit amounts based on an individual’s income or assets. Supporters argue that this would ensure benefits are targeted to those who need them most, potentially reducing the strain on the program’s finances. However, critics express concerns about the potential impact on middle-income earners who have paid into the system throughout their working lives and rely on Social Security as a significant part of their retirement income.

    Read: What happens to Social Security payments if no debt-ceiling deal is reached?

    An interesting concept I’ve recently seen bandied about involves a trade-off between Social Security benefits and Required Minimum Distributions (RMDs) from retirement plans. Essentially an individual could forgo Social Security benefits (at least partially if not fully) in exchange for looser restrictions on RMDs – allowing for further deferral of taxation on retirement accounts.

    Benefit reductions

    In order to sustain the Social Security program, benefit reductions might be considered. This could involve various approaches such as adjusting the formula used to calculate benefits or implementing a scaling factor to reduce benefit amounts. While benefit reductions would aim to preserve the long-term viability of Social Security, they could pose challenges for retirees who rely heavily on those benefits to cover essential living expenses.

    Also see: This is what’s most likely to knock your retirement off course

    Most benefit reduction proposals in the pipeline are in concert with expanding the tax base, while at the same time limiting benefits to the upper echelons of earnings levels. In these cases the taxable wage base is either expanded or removed altogether, and the amounts above the current wage base are credited for benefits at a minuscule rate.

    It’s important to note that any changes to Social Security benefits would likely be accompanied by broader discussions and careful consideration from policy makers. The goal would be to strike a balance between ensuring the program’s financial stability and protecting the well-being of current and future retirees.

    As an individual planning for retirement, it’s crucial to stay informed about potential changes to Social Security benefits. Keeping track of legislative proposals and staying engaged in the conversation can help you adapt your retirement plans accordingly. Consider consulting with a financial adviser who specializes in retirement planning to assess the potential impact on your retirement income and explore other strategies to supplement your savings.

    Read: This lawmaker’s ‘big idea’ could fix most—but not all—of the Social Security crisis

    Social Security benefits may undergo changes in the future as policy makers grapple with the program’s financial challenges. Adjustments to the full retirement age, means-testing benefits, and benefit reductions are among the potential changes that could be considered. By staying informed and seeking professional guidance, you can navigate these potential changes and make informed decisions to secure your financial well-being during retirement.

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  • BT sets plan to cut 55,000 jobs by end of decade

    BT sets plan to cut 55,000 jobs by end of decade

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    U.K. telecoms provider BT Group set plans to cut up to 55,000 jobs by the end of the decade as it completes the rollout of high-speed broadband.

    BT Group
    BT.A,
    -7.09%
    says it is aiming to reduce its total labor force, which includes contractors, from 130,000 down to between 75,000 to 90,000 by fiscal 2028 to fiscal 2030.

    “It is not surprising that in an inflationary and high-interest rates environment where costs are higher and increased expenses for servicing debt, telecommunication companies are employing technology to decrease costs wherever possible,” said Albie Amankona, analyst at Third Bridge. 

    U.K.-based mobile operator Vodafone Group
    VOD,
    +0.30%
    on Tuesday said it would cut 11,000 jobs over three years.

    BT said revenue and adjusted EBITDA for its fiscal year was in line with its outlook but normalized free cash flow of £1.33 billion was at the lower end of guidance due to spending on building the Openreach fiber network.

    For fiscal 2024, it’s targeting revenue and EBITDA growth on a pro forma basis; and normalized free cash flow between £1 billion and £1.2 billion. BT shares dropped 8% in early trade.

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  • Netflix’s password-sharing crackdown is imminent, but the writers’ strike may be causing a delay

    Netflix’s password-sharing crackdown is imminent, but the writers’ strike may be causing a delay

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    Netflix Inc. has teased the U.S. rollout of a password-sharing crackdown, but one analyst wonders if the ongoing writers’ strike is delaying the company’s plans.

    The streaming-media company has already started to clamp down on account sharing in other markets by limiting who can use accounts and charging more for additional access. JPMorgan’s Doug Anmuth wondered if Netflix
    NFLX,
    +0.78%
    was rethinking a broader rollout at the moment, given the prospect of content interruptions.

    See more: Netflix delivers cliffhanger for investors as password-sharing crackdown is delayed

    “Paid sharing is effectively a price increase, w/paid members sharing their password receiving less value for the same price, or potentially paying more to add an extra member. And for borrowers who currently do not pay, paid sharing means either activating their own subscription or being added as an extra member, or losing access to NFLX,” he wrote in a note to clients.

    For that reason, “it’s possible that NFLX may not like the optics of implementing paid sharing while 11,500 WGA writers are on strike, w/production suspended or writing paused across at least a handful of NFLX titles including Stranger Things S5 & Emily in Paris S4, among others,” Anmuth continued.

    Netflix didn’t respond to a MarketWatch request for comment asking when paid sharing will roll out in the U.S., why it hasn’t rolled out yet, and if the delay was at all due to the writers’ strike.

    Opinion: Disney shows streaming wars are destroying all that was good about streaming

    The paid-sharing rollout is a critical element of Netflix’s financial story these days. Netflix estimates that some 100 million people were freeloading off of others’ paid Netflix subscribers, and Anmuth expected that Netflix would be able to get at least 30 million of those to start paying up, whether by becoming add-on members for existing accounts or new subscribers in their own right.

    For that reason, a continuation of the writers’ strike “could further postpone revenue & subscriber acceleration,” he wrote.

    See also: Streaming nirvana is about to become more expensive — and offer less content

    The writers’ strike also threatens to impact Netflix’s other hot initiative: its advertising tier. Anmuth noted that the company’s upfront presentation to advertisers, its first-ever, was turning into a prerecorded event, presumably because the company fears “heavy picketing and protesting” and “less availability of star talent.”

    “[U]ltimately, advertising is closely tied to paid sharing, w/borrowers likely viewing a $6.99 Standard w/Ads plan as a compelling low-priced option,” Anmuth wrote. “Therefore, ramp of the ad tier is also delayed if paid sharing is delayed.”

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  • G7 vs China: US, Europe unite in tough messaging against Beijing

    G7 vs China: US, Europe unite in tough messaging against Beijing

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    HIROSHIMA, Japan — China on Saturday faced a strong pushback from the Group of Seven countries over its stances on Russia, Taiwan, trade bullying, economic monopoly and domestic interference, with the G7 leaders’ statement reflecting a broad convergence of the U.S., Europe and Japan on a need to change tack.

    Issued around the time of Ukrainian President Volodymyr Zelenskyy’s arrival in Hiroshima, where the summit is taking place, the statement by leaders of the G7 wealthy democracies asked Beijing to do more to stop Russia’s war on Ukraine.

    “We call on China to press Russia to stop its military aggression, and immediately, completely and unconditionally withdraw its troops from Ukraine,” the leaders said in the statement. “We encourage China to support a comprehensive, just and lasting peace based on territorial integrity and the principles and purposes of the U.N. Charter, including through its direct dialogue with Ukraine.”

    Crucially, the U.S. and Europe — the two main constituents of the G7 — came round to a common set of language on China. For France and Germany, in particular, their focus on a conciliatory attitude to China was reflected in the final statement, which began the China section by stating “We stand prepared to build constructive and stable relations with China.”

    The G7’s repeated emphasis of “de-risking, not decoupling” is a nod to the EU approach to China, as European member countries are wary of completely cutting off business ties with Beijing.

    The language on Taiwan remained the same compared with recent statements. “We reaffirm the importance of peace and stability across the Taiwan Strait as indispensable to security and prosperity in the international community,” the statement said, adding there’s “no change in the basic positions” in terms of the one China policies.

    Domestic interference

    Apart from Russia, another new element this year is the mention of domestic interference — which human rights groups say is a reflection of the growing concern about China’s “overseas police stations” in other countries. “We call on China … not to conduct interference activities aimed at undermining the security and safety of our communities, the integrity of our democratic institutions and our economic prosperity,” the leaders said in their statement, citing the Vienna Convention which regulates diplomatic affairs.

    On global economics, both sides of the Atlantic and Japan now see the need to fundamentally change the overall dynamic of economic globalization, placing security at the front of policy considerations.

    “Our policy approaches are not designed to harm China nor do we seek to thwart China’s economic progress and development. A growing China that plays by international rules would be of global interest,” the G7 leaders said in the statement.

    “We are not decoupling or turning inwards. At the same time, we recognize that economic resilience requires de-risking and diversifying. We will take steps, individually and collectively, to invest in our own economic vibrancy. We will reduce excessive dependencies in our critical supply chains,” they said.

    One central theme is economic coercion, where China has punished a wide range of countries — from Japan and Australia to Lithuania and South Korea — over the decade when political disagreements arose.

    The G7 countries launched a new “coordination platform on economic coercion” to “increase our collective assessment, preparedness, deterrence and response to economic coercion,” according to the statement. They also plan to coordinate with other partners to further the work on this.

    For France, the focus on a conciliatory attitude to China was reflected in the final statement, which began by stating “We stand prepared to build constructive and stable relations with China” | Pool phot by Stefan Rousseau/Getty Images

    The joint call for diverse sources of critical minerals, while stopping short of naming China, is widely seen as targeted against the Asian superpower that controls, for instance, 70 percent of global rare earths output. The G7 countries “support open, fair, transparent, secure, diverse, sustainable, traceable, rules and market-based trade in critical minerals” and “oppose market-distorting practices and monopolistic policies on critical minerals,” according to the statement.

    They also vow to deliver the goal of mobilizing up to $600 billion in financing for quality infrastructure through the Partnership for Global Infrastructure Investment, a rival to China’s Belt and Road initiative. “We will mobilize the private sector for accelerated action to this end,” they said.

    In a bilateral in Hiroshima, British Prime Minister Rishi Sunak and French President Emmanuel Macron “welcomed the strong unity of purpose at the G7 on … our collective approach to the economic threat posed by China,” a spokesperson for Sunak’s office said.

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    Stuart Lau and Eli Stokols

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  • Scabby the Rat gives bite to union protests, but is he at the tail end of his relevancy?

    Scabby the Rat gives bite to union protests, but is he at the tail end of his relevancy?

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    NEW YORK — For decades, a giant, inflatable rat with beady eyes, sharp teeth and a pustule-covered belly has loomed over union protests, drawing attention to various labor disputes.

    As New York City deals with an influx of actual rats, Scabby the Rat has become that rare thing, like Pizza Rat or Buddy the Rat — a rodent New Yorkers can rally behind.

    But in the era of TikTok and influencer culture, middle-aged Scabby faces a new challenge: staying relevant.

    “It’s kind of unfortunate, changing times, older members of the public know exactly what the rat is for,” said James Smith, union activity administrator for the NYC District Council of Carpenters. “The newer generation sometimes doesn’t — one person thought that we were protesting a building that needed an exterminator.”

    Nevertheless, Scabby’s not collecting hard-won retirement benefits just yet. Most recently, Scabby has been making the rounds at various picket lines in New York for the Hollywood writers strike organized by the Writers Guild of America East and other unions. Scabby is the “true rat czar of New York City,” said WGA East communications director Jason Gordon, referencing the more fun title for the city’s new director of rodent mitigation.

    At the picket line near HBO and Amazon’s New York offices on Wednesday, screenwriter Lisa Kron, 61, said she was “thrilled to see that we were being chaperoned by Scabby the Rat.”

    She’s seen Scabby out and about during her four decades living in New York, but this was her first time picketing with the rat.

    “It’s one of those great enduring symbols, it’s a great piece of visual protest,” she said. “It’s got humor and it’s got a shaming kind of message. And it’s very New York.”

    “It’s an attention grabber,” said Benjamin Serby, a professor at Adelphi University who has written about the history of Scabby. “It’s something that just is very effective, for whatever reason, at making people walking by or driving by, stop and ask: ‘What’s going on here?’”

    Although having a rat as a mascot seems quintessentially New York, Scabby the Rat was actually invented by a union in Chicago around the late 1980s (several claim credit), and other unions around the country quickly adopted the practice of using inflatables to draw attention to actions (pigs, roaches and cats are other popular inflatables to use as well, although they lack a catchy nickname).

    There are many Scabbys. At another union action in March at a Petco, Marty Flash sat in the cab of his truck used to ferry one of the NYC District Council of Carpenters’ eight rats around (most unions have several, or borrow from unions that do). Most of the District Council’s rats, along with a generator and gas can, stay in a locker at union headquarters or in organizers’ trucks so they can be quickly deployed.

    Flash, a carpenter for 35 years, has seen many reactions to the 10-foot-tall (3-meter-tall) rat, which, at the moment, was towering over Union Square in the truck’s bed.

    “In midtown Manhattan, it’s a tourist attraction. Little children get a real kick out of it. They come over, they want to touch it. Dogs are petrified of it,” he said. Flash said Scabby can inflate in about a minute and a half with a generator and deflate in about 30 seconds. Bigger rats — the rats range from 8 to 20-plus feet (more than 6 meters) — can take 15 minutes to fill up.

    Scabby’s name is a play on “scabs,” the derogatory term dating back to the 1800s for strikebreakers who cross picket lines to work. The oozing sores on his belly are a visual reference to the term. But Flash said workers at the sites visited by Scabby shouldn’t take offense, since the rat is protesting against contractors and companies, not the workers themselves.

    “Some workers think that we are against them. We’re actually fighting to get them more money, better pay and better benefits,” he said. “But it’s perceived as the rat is calling them a rat or implying that they’re ‘less than.’ Which is not our intention. … It’s to imply that a rat contractor is not paying their workers the fair pay.”

    Rats are made of PVC vinyl and cost between $8,000 to $20,000, according to Flash. One company, Blue Sky Balloons outside of Chicago, is responsible for most of the rats found in NYC. But they seem to be distancing themselves from the inflatables, The Guardian reported earlier this year. Blue Sky Balloons responded to an Associated Press query by saying they were new owners who weren’t associated with the rat, and didn’t respond to follow-up queries.

    But Flash says his union still sends their rats to Big Sky for repairs, which can cost up to $2,000. Repairs are needed often since most are years or decades old — so the unions try to take good care of their rats.

    “I baby this one with my life,” Flash said. “We have a pool of rats and generators that you take when you need. I just always keep mine with me because I’m familiar with this operation.”

    Not everyone likes Scabby. Sometimes the inflatable rat gets slashed or attacked by anyone from random passersby to disgruntled workers at sites. The rat has often been the subject of legal challenges by the companies Scabby targets. If he blocks the sidewalk or street, police can boot him. But Scabby is a survivor, winning its most recent legal challenge in 2021, when the National Labor Relations Board ruled that it was a protected form of expression.

    These days, Scabby also has to contend with new technology and social media. Its Facebook page, run by a retired union organizer, lets various unions post photos of Scabby at protests around the country, and some rats feature QR codes that give people information about campaigns. But Mike Piccirillo, president of Local 20 Carpenters Union, said a more recent addition to the union’s arsenal might overshadow Scabby.

    “Our LED sign truck is a lot more effective than the rat,” he said. “I’ve been in construction for 25 years, and most New Yorkers are numb to the rat. They just walk by it. Now the LED sign with its flashing lights actually gets their attention.”

    Yet — much like the currently surging rat population in New York — Scabby is unlikely to completely disappear anytime soon, as long as the rat keeps conveying his message of fair pay for workers.

    “People are drawn to it in part because it’s like an ironic symbol of defiance,” Serby said. “Something about this giant, ugly, toothy kind of scary-looking rat makes people feel permitted to express anger and defiance and outrage at employers.”

    —-

    This story has been corrected to show the title for New York’s rodent control executive is director of rodent mitigation, not migration.

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  • Scabby the Rat gives bite to union protests, but is he at the tail end of his relevancy?

    Scabby the Rat gives bite to union protests, but is he at the tail end of his relevancy?

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    NEW YORK — For decades, a giant, inflatable rat with beady eyes, sharp teeth and a pustule-covered belly has loomed over union protests, drawing attention to various labor disputes.

    As New York City deals with an influx of actual rats, Scabby the Rat has become that rare thing, like Pizza Rat or Buddy the Rat — a rodent New Yorkers can rally behind.

    But in the era of TikTok and influencer culture, middle-aged Scabby faces a new challenge: staying relevant.

    “It’s kind of unfortunate, changing times, older members of the public know exactly what the rat is for,” said James Smith, union activity administrator for the NYC District Council of Carpenters. “The newer generation sometimes doesn’t — one person thought that we were protesting a building that needed an exterminator.”

    Nevertheless, Scabby’s not collecting hard-won retirement benefits just yet. Most recently, Scabby has been making the rounds at various picket lines in New York for the Hollywood writers strike organized by the Writers Guild of America East and other unions. Scabby is the “true rat czar of New York City,” said WGA East communications director Jason Gordon, referencing the more fun title for the city’s new director of rodent migration.

    At the picket line near HBO and Amazon’s New York offices on Wednesday, screenwriter Lisa Kron, 61, said she was “thrilled to see that we were being chaperoned by Scabby the Rat.”

    She’s seen Scabby out and about during her four decades living in New York, but this was her first time picketing with the rat.

    “It’s one of those great enduring symbols, it’s a great piece of visual protest,” she said. “It’s got humor and it’s got a shaming kind of message. And it’s very New York.”

    “It’s an attention grabber,” said Benjamin Serby, a professor at Adelphi University who has written about the history of Scabby. “It’s something that just is very effective, for whatever reason, at making people walking by or driving by, stop and ask: ‘What’s going on here?’”

    Although having a rat as a mascot seems quintessentially New York, Scabby the Rat was actually invented by a union in Chicago around the late 1980s (several claim credit), and other unions around the country quickly adopted the practice of using inflatables to draw attention to actions (pigs, roaches and cats are other popular inflatables to use as well, although they lack a catchy nickname).

    There are many Scabbys. At another union action in March at a Petco, Marty Flash sat in the cab of his truck used to ferry one of the NYC District Council of Carpenters’ eight rats around (most unions have several, or borrow from unions that do). Most of the District Council’s rats, along with a generator and gas can, stay in a locker at union headquarters or in organizers’ trucks so they can be quickly deployed.

    Flash, a carpenter for 35 years, has seen many reactions to the 10-foot-tall (3-meter-tall) rat, which, at the moment, was towering over Union Square in the truck’s bed.

    “In midtown Manhattan, it’s a tourist attraction. Little children get a real kick out of it. They come over, they want to touch it. Dogs are petrified of it,” he said. Flash said Scabby can inflate in about a minute and a half with a generator and deflate in about 30 seconds. Bigger rats — the rats range from 8 to 20-plus feet (more than 6 meters) — can take 15 minutes to fill up.

    Scabby’s name is a play on “scabs,” the derogatory term dating back to the 1800s for strikebreakers who cross picket lines to work. The oozing sores on his belly are a visual reference to the term. But Flash said workers at the sites visited by Scabby shouldn’t take offense, since the rat is protesting against contractors and companies, not the workers themselves.

    “Some workers think that we are against them. We’re actually fighting to get them more money, better pay and better benefits,” he said. “But it’s perceived as the rat is calling them a rat or implying that they’re ‘less than.’ Which is not our intention. … It’s to imply that a rat contractor is not paying their workers the fair pay.”

    Rats are made of PVC vinyl and cost between $8,000 to $20,000, according to Flash. One company, Blue Sky Balloons outside of Chicago, is responsible for most of the rats found in NYC. But they seem to be distancing themselves from the inflatables, The Guardian reported earlier this year. Blue Sky Balloons responded to an Associated Press query by saying they were new owners who weren’t associated with the rat, and didn’t respond to follow-up queries.

    But Flash says his union still sends their rats to Big Sky for repairs, which can cost up to $2,000. Repairs are needed often since most are years or decades old — so the unions try to take good care of their rats.

    “I baby this one with my life,” Flash said. “We have a pool of rats and generators that you take when you need. I just always keep mine with me because I’m familiar with this operation.”

    Not everyone likes Scabby. Sometimes the inflatable rat gets slashed or attacked by anyone from random passersby to disgruntled workers at sites. The rat has often been the subject of legal challenges by the companies Scabby targets. If he blocks the sidewalk or street, police can boot him. But Scabby is a survivor, winning its most recent legal challenge in 2021, when the National Labor Relations Board ruled that it was a protected form of expression.

    These days, Scabby also has to contend with new technology and social media. Its Facebook page, run by a retired union organizer, lets various unions post photos of Scabby at protests around the country, and some rats feature QR codes that give people information about campaigns. But Mike Piccirillo, president of Local 20 Carpenters Union, said a more recent addition to the union’s arsenal might overshadow Scabby.

    “Our LED sign truck is a lot more effective than the rat,” he said. “I’ve been in construction for 25 years, and most New Yorkers are numb to the rat. They just walk by it. Now the LED sign with its flashing lights actually gets their attention.”

    Yet — much like the currently surging rat population in New York — Scabby is unlikely to completely disappear anytime soon, as long as the rat keeps conveying his message of fair pay for workers.

    “People are drawn to it in part because it’s like an ironic symbol of defiance,” Serby said. “Something about this giant, ugly, toothy kind of scary-looking rat makes people feel permitted to express anger and defiance and outrage at employers.”

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