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U.S. stocks bounced around their records after the Federal Reserve made moves to boost the job market but warned that more help isn’t guaranteed
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U.S. stocks bounced around their records after the Federal Reserve made moves to boost the job market but warned that more help isn’t guaranteed
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Meta’s stock slid in after-hours trading on Wednesday after the tech giant posted strong third-quarter results but warned that its expenses will be significantly higher in 2026 than this year.
Like its rivals, Meta Platforms Inc. has been on an artificial intelligence spending spree and said its costs will grow much faster next year, driven by infrastructure costs and employee compensation as it has hired AI experts at eye-popping compensation levels.
“Employee compensation costs will be the second largest contributor to growth, as we recognize a full year of compensation for employees hired throughout 2025, particularly AI talent, and add technical talent in priority areas,” Meta said.
Menlo Park, California-based Meta Platforms Inc. earned $2.71 billion, or $1.05 per share, in the July-September period. Excluding tax-related special expenses, the company would have earned $7.25. Revenue rose 26% to $51.42 billion from $40.59 billion.
Analysts, on average, were expecting earnings of $6.72 per share on revenue of $49.51 billion, according to analysts surveyed by FactSet Research.
Meta’s daily active user base on its apps — Facebook, Messenger, WhatsApp, Instagram and Threads — was 3.54 billion on average for September, up 8% year-over-year.
For the current quarter, Meta is forecasting revenue in the range of $56 billion to $59 billion. Analysts are forecasting $57.36 billion for the October-December quarter.
Meta also cautioned that it is facing a slew of legal and regulatory issues in the U.S. and the European Union that could hurt its bottom line.
“In the U.S., a number of youth-related trials are scheduled for 2026, and may ultimately result in a material loss,” the company said.
In the U.S., Meta is facing an antitrust case that’s now awaiting a judge’s decision and could force the company to break off WhatsApp and Instagram, startups Meta bought more than a decade ago that have since grown into social media powerhouses.
Meta’s shares fell $57.67, or 7.7%, to $694 in after-hours trading. The stock had closed up slightly at $751.67.
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In long-awaited cuts just months after completing its $8 billion merger with Skydance, Paramount has begun layoffs set to impact about 2,000 employees
AP Business Writer — In long-awaited cuts just months after completing its $8 billion merger with Skydance, Paramount has begun layoffs set to impact about 2,000 employees.
Paramount initiated roughly 1,000 of those layoffs company-wide on Wednesday, according to a source familiar with the matter, who spoke on the condition of anonymity because they weren’t authorized to publicly comment on behalf of the company. The rest of the cuts will be made at a later date, they said.
In all, 2,000 job reductions amount to about 10% of the Paramount’s total workforce.
“These decisions are never made lightly, especially given their effect on our colleagues who have made meaningful contributions to the company,” CEO David Ellison wrote Wednesday in memo to employees, which was obtained by The Associated Press.
The prospect of coming job cuts has hovered above Paramount employees for a while now. Ellison on Wednesday reiterated that the company has been working to restructure since the completion of its merger in August — and noted that workforce cuts are “part of that process.”
It’s not uncommon for businesses to initiate layoffs following a merger. And when Skydance completed its purchase of Paramount, the combined company said it would look for “opportunities to streamline its business.” Paramount reportedly began making cuts in August.
Since launching “new Paramount” just months ago, Ellison has already moved to add more acquisitions to the media giant’s portfolio and shake up leadership at CBS, its top broadcast network. On Oct. 6, the company announced that it had bought news and commentary website The Free Press — and installed its founder, Bari Weiss, as the editor-in-chief of CBS News.
The company is now rumored to be eyeing an even heftier acquisition: Warner Bros. Discovery, the home of HBO, CNN and DC Studios.
Neither Paramount or Warner have publicly confirmed talks. But Warner recently signaled that it may be open to selling all or parts of its business — in light of “unsolicited interest” it said it had received from multiple parties. The company has been reportedly resistant to Paramount’s initial approach. According to CNBC, which cited anonymous sources, Warner had rejected three offers from Paramount as of last week.
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Amazon will cut about 14,000 corporate jobs as the online retail giant ramps up spending on artificial intelligence while cutting costs elsewhere.
Teams and individuals impacted by the job cuts will be notified on Tuesday. Most workers will be given 90 days to look for a new position internally, Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, wrote in a letter to employees on Tuesday. Those who can’t find a new role at the company or who opt not to look for one will be provided transitional support including severance pay, outplacement services and health insurance benefits.
Amazon has about 350,000 corporate employees and a total workforce of approximately 1.56 million. The cuts announced Tuesday amount to about a 4% reduction in its corporate workforce.
In June CEO Andy Jassy, who has aggressively sought to cut costs since becoming CEO in 2021, said that he anticipated generative AI would reduce Amazon’s corporate workforce in the next few years.
Jassy said at the time that Amazon had more than 1,000 generative AI services and applications in progress or built, but that figure was a “small fraction” of what it plans to build.
Amazon has announced plans to invest $10 billion building a campus in North Carolina to expand its cloud computing and artificial intelligence infrastructure.
Since 2024 started, Amazon has committed to about $10 billion apiece to data center projects in Mississippi, Indiana, Ohio and North Carolina as it builds up its infrastructure to try to keep up with other tech giants making leaps in AI. Amazon is competing with OpenAI, Google, Microsoft, Meta and others. In a conference call with industry analysts in May, Jassy said that the potential for growth in the company’s AWS business is massive.
“If you believe your mission is to make customers’ lives easier and better every day, and you believe that every customer experience will be reinvented with AI, you’re going to invest very aggressively in AI, and that’s what we’re doing. You can see that in the 1,000-plus AI applications we’re building across Amazon. You can see that with our next generation of Alexa, named Alexa+,” he said.
Amazon’s workforce doubled during the pandemic as millions stayed home and boosted online spending. In the following years, big tech and retail companies cut thousands of jobs to bring spending back in line.
The cuts announced Tuesday suggests Amazon is still trying to get the size of its workforce right and it may not be over. It was the biggest culling at Amazon since 2023, when the company cut 27,000 jobs. Those cuts came in waves, with 9,000 jobs trimmed in March of that year, and another 18,000 employees two months later. Amazon has not said if more job cuts are on the way.
Yet the jobs market which has for years been a pillar in the U.S. economy, is showing signs of weakening. Layoffs have been limited, but the same can be said for hiring.
Government hiring data is on hold during the government shut down, but earlier this month a survey by payroll company ADP showed a surprising loss of 32,000 jobs losses in the private sector in September.
Many retailers are pulling back on seasonal hiring this year due to uncertainty over the U.S. economy and tariffs. Amazon Inc. said this month, however, that it would hire 250,000 seasonal workers, the same as last year’s holiday season.
Neil Saunders, managing director of GlobalData, said in a statement that the layoffs “represent a deep cleaning of Amazon’s corporate workforce.”
“Unlike the Target layoffs, Amazon is operating from a position of strength,” he said. “The company has been producing good growth, and it still has a lot of headroom for further expansion in both the U.S. and overseas.”
But Saunders noted that Amazon is not immune to outside factors, as global markets tighten and underlying costs climb.
“It needs to act if it wants to continue with a good bottom-line performance. This is especially so given the amount of investment the company is making in areas like logistics and AI. In some ways, this is a tipping point away from human capital to technological infrastructure,” he said.
Amazon will post quarterly financial results on Thursday. During its most recent quarter, the company reported 17.5% growth for its cloud computing arm Amazon Web Services.
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Amazon will cut about 14,000 corporate jobs as the online retail giant ramps up spending on artificial intelligence.
“The reductions we’re sharing today are a continuation of this work to get even stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure we’re investing in our biggest bets and what matters most to our customers’ current and future needs,” Beth Galetti, Senior Vice President of People Experience and Technology at Amazon said in message to employees Tuesday.
Included in the letter was a memo to Amazon staff last year from CEO Andy Jassy,
Teams and individuals impacted by the job cuts will be notified on Tuesday.
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Boeing workers at three Midwest plants where military aircraft and weapons are developed voted Sunday to reject the company’s latest contract offer and to continue a strike that started almost three months ago.
The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners but threatens to complicate the aerospace company’s progress in regaining its financial footing.
“Boeing claimed they listened to their employees – the result of today’s vote proves they have not,” Brian Bryant, president of the International Association of Machinists union, said in a statement.
Union leaders say talks have stalled over issues such as wages and retirement benefits, while Boeing has argued that workers’ demands exceed the cost of living in the Midwest.
Ahead of Sunday’s vote, the union told its members that it did not recommend approval of the company’s latest offer, which it said “had no meaningful improvements” to retirement benefits and wage increases for workers with more seniority.
Negotiations escalated over the summer in the days leading up to the strike, with the workers rejecting an earlier proposed agreement that included a 20% wage hike over the life of the five-year contract.
Boeing quickly countered with a modified agreement that didn’t boost the proposed pay raises but did remove a scheduling provision affecting the workers’ ability to earn overtime pay. Workers rejected that offer, too, and went on strike the next morning.
The company has said that it was prepared for a strike, with a contingency plan in place “to ensure our non-striking workforce can continue supporting our customers.”
Boeing’s Defense, Space & Security business accounts for more than one-third of the company’s revenue. Boeing is set to report its third-quarter earnings on Wednesday.
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Target said Thursday that it is eliminating about 1,800 corporate positions in an effort to streamline decision-making and accelerate initiatives to rebuild the flagging discount retailer’s customer base.
About 1,000 employees are expected to receive layoff notices next week, and the company also plans to eliminate about 800 vacant jobs, a company spokesperson said. The cuts represent about 8% of Target’s corporate workforce globally, although the majority of the affected employees work at the company’s Minneapolis headquarters, the spokesperson said.
Chief Operating Officer Michael Fiddelke, who is set to become Target’s next CEO on Feb. 1, issued a note to personnel on Thursday announcing the downsizing. He said further details would come on Tuesday, and he asked employees at the Minneapolis offices to work from home next week.
“The truth is, the complexity we’ve created over time has been holding us back,” Fiddelke, a 20-year Target veteran, wrote in his note. “Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life.”
Target, which has about 1,980 U.S. stores, lost ground to Walmart and Amazon in recent years as inflation caused shoppers to curtail their discretionary spending. Customers have complained of messy stores with merchandise that did not reflect the expensive-looking but budget-priced niche that long ago earned the retailer the jokingly posh nickname “Tarzhay.”
Fiddelke said in August when he was announced as Target’s next CEO that he would step into the role with three urgent priorities: reclaiming the company’s position as a leader in selecting and displaying merchandise; improving the customer experience by making sure shelves are consistently stocked and stores are clean; and investing in technology.
He cited the same goals in his message to employees, calling the layoffs a “necessary step in building the future of Target and enabling the progress and growth we all want to see.”
“Adjusting our structure is one part of the work ahead of us. It will also require new behaviors and sharper priorities that strengthen our retail leadership in style and design and enable faster execution,” he wrote.
Target has reported flat or declining comparable sales — those from established physical stores and online channels — in nine out of the past 11 quarters. The company reported in August that comparable sales dipped 1.9% in its second quarter, when its net income also dropped 21%.
The job cuts will not affect any store employees or workers in Target’s sorting, distribution and other supply chain facilities, the company spokesperson said.
The corporate workers losing their jobs will receive pay and benefits until Jan. 8 as well as severance packages, the spokesperson said.
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NEW YORK — NEW YORK (AP) — The union representing Broadway’s musicians reached a tentative labor agreement with commercial producers on Thursday, averting a potentially crippling strike that would have silenced nearly two dozen musicals.
The American Federation of Musicians Local 802 — which represents 1,200 musicians — had threatened to strike if they didn’t have a new contract by the morning, after going into mediation Wednesday.
Early Thursday, the union said it had struck a tentative deal that includes wage increases and contribution increases to the health fund.
“This three-year agreement provides meaningful wage and health benefit increases that will preserve crucial access to healthcare for our musicians while maintaining the strong contract protections that empower musicians to build a steady career on Broadway,” AFM Local 802 President Bob Suttmann said in a statement.
The 23 shows that could have gone silent ranged from megahits like “Hamilton” and “The Lion King” to newcomers like “Queen of Versailles” and “Chess,” which are still in previews. Plays would not have been automatically impacted.
It was the second Broadway labor deal in less than a week. Labor tensions had already seemed cool after Actors’ Equity Association — which represents over 51,000 members, including singers, actors, dancers and stage managers — announced a new three-year agreement with producers over the weekend.
Members of both unions had been working under expired contracts. The musicians’ contract expired on Aug. 31, and the Equity contract expired Sept. 28.
The health of Broadway — once very much in doubt due to the coronavirus pandemic that shut down theaters for some 18 months — is now very good, at least in terms of box office. It has been a long road back from the days when theaters were shuttered and the future looked bleak, but the 2024-2025 season took in $1.9 billion — the highest-grossing season in recorded history, overtaking the pre-pandemic previous high of $1.8 billion during the 2018-2019 season.
The unions pointed to the financial health of Broadway to argue that producers could afford to up pay and benefits for musicians and actors. Producers, represented by The Broadway League, had countered that the restored health of Broadway could be endangered by potential ticket price increases to accommodate the demands.
The most recent major strike on Broadway was in late 2007, when a 19-day walkout by stagehands dimmed the lights on more than two dozen shows and cost producers and the city millions of dollars in lost revenue.
On Wednesday, three U.S. senators from New York and New Jersey — Democrats Kirsten Gillibrand, Cory Booker and Andy Kim — wrote to both sides, urging them to “participate in good faith negotiations and continued communication.” The senators noted that Broadway supports nearly 100,000 jobs and is “an essential cornerstone in the economic well-being of surrounding businesses and sectors, including hospitality, retail and transportation.”
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MENLO PARK, Calif. — MENLO PARK, Calif. (AP) — Meta Platforms is cutting roughly 600 artificial intelligence jobs even as it continues to hire more workers for its superintelligence lab, the company confirmed on Wednesday.
Axios first reported the cuts, which will affect Meta’s Fundamental AI Research, or FAIR unit, as well as product-related AI and AI infrastructure units.
Its newer TBD Lab unit won’t be affected. Citing a memo sent to workers by chief AI officer Alexandr Wang, Axios said the company is encouraging employees affected to apply for other jobs at Meta, with most expected to find other roles. The Menlo Park, California-based company is also still recruiting and hiring for TBD Lab, which is developing Meta’s latest large language models. Large language models are the technology behind OpenAI’s ChatGPT, Google’s Gemini — and Meta’s Llama.
Meta has taken a different approach to AI than many of its rivals, releasing its flagship Llama system for free as an open-source product that enables people to use and modify some of its key components. Meta says more than a billion people use its AI products each month, but it’s also widely seen as lagging behind competitors such as OpenAI and Google in encouraging consumer use of large language models, also known as LLMs.
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Gov. Jared Polis is still trying to find a way to comply with a federal immigration subpoena, four months after a Denver judge ruled that doing so would violate Colorado law.
In repeated court filings, including one submitted Friday, Polis’ private attorneys have said they intend to turn over records on 10 businesses that employed several sponsors of unaccompanied children to U.S. Immigration and Customs Enforcement.
They’ve asked a Denver judge, who previously prohibited some state employees from complying with ICE’s subpoena, to dismiss the case and clear the way for them to turn over a more limited batch of records.
The recent filings represent the second attempt by Polis to comply with the April immigration enforcement subpoena. The governor’s first attempt was blocked by District Court Judge A. Bruce Jones in June, after Jones sided with a senior state employee who’d sued Polis earlier that month to stop the state from fulfilling the subpoena.
The employee, Scott Moss, argued that providing the requested records would violate state laws that limit what information can be shared with federal immigration authorities.
But though Jones preliminarily sided with Moss, his ruling is complicated. He prohibited Polis from directing a specific division of the Colorado Department of Labor and Employment to comply with the subpoena. But he said he couldn’t prevent Polis from directing others to comply with the subpoena, even though Jones said doing so would still likely violate the law.
The records that Polis now says he intends to turn over to ICE are in the custody of another labor department division not covered in Jones’ order.
In an email Tuesday, Polis spokeswoman Shelby Wieman declined to comment on the case or why Polis is still seeking to provide records to ICE. She pointed to the administration’s recent legal filings.
The administration has previously said it wanted to support ICE’s efforts to check on unaccompanied minors without legal status, though the governor’s office has not provided any evidence that it has sought assurances that ICE wasn’t seeking the information purely for immigration enforcement efforts.
David Seligman, whose law firm has supported the case, criticized the governor’s decision to seek the lawsuit’s dismissal while indicating his intention to turn over records to ICE. While ICE wrote that it wanted detailed employment records so it could check on the well-being of unaccompanied children, Seligman and Moss, the employee who brought the lawsuit, have argued that the agency only wants the information so it can arrest and deport the children’s sponsors.
“It is absolutely absurd that this governor would be going out of his way to comply with and cooperate with ICE in light of everything that we’re seeing right now,” Seligman said.
Moss has since left the department, and Polis’ lawyers now argue that no one associated with the case has a legal standing to challenge compliance with the subpoena. They’ve also argued that they can turn over the records because the employers’ addresses and contact information can be found online.
The records are only part of the broader swath of personal details that ICE initially requested, and they cover only six of the 35 sponsors for which ICE first sought records. The sponsors are typically family members of children without legal status, who care for the minors while their immigration cases proceed.
The administration has similarly told ICE officials that it intends to comply with part of the subpoena once the lawsuit is concluded. In a July 11 email, Joe Barela, the head of the Department of Labor and Employment, wrote to a special agent in ICE’s investigative branch that the agency planned to “provide your office with the names and contact information for those 10 employers.”
The labor department has already complied with three ICE subpoenas this year, including in one “erroneous” case that apparently ran afoul of state law.
Jones must now rule on whether to dismiss the lawsuit or let it proceed. Between June and early September, Recht Kornfeld, the private law firm Polis hired to represent him in the lawsuit, has billed the state for more than $104,000, according to records obtained by The Denver Post through a public records request.
The Colorado Attorney General’s Office has said it was unable to represent Polis because of legal advice it provided to the governor related to complying with the subpoena. The office has declined to characterize the nature of that advice.
The subpoena was sent to the state labor department in April as part of what ICE described as essentially a welfare check of unaccompanied minors in the state. The subpoena sought employment and personal records for the children’s sponsors.
Initially, administration officials decided not to comply with the subpoena because of the state’s laws limiting such contact. But Polis abruptly changed course and decided to turn over the records, prompting Moss to sue.
Polis’ office has claimed that the governor wanted to comply with the subpoena because it was part of a “targeted” criminal investigation into human trafficking. The state’s immigration laws — including one signed by Polis in late May — allow state officials to comply with federal subpoenas if they’re part of criminal probes, rather than immigration enforcement operations.
But the governor’s office has not released any evidence that the criminal investigation actually exists or that it made any effort to ensure that it did.
Jones wrote that “the subpoena — on its face — was not issued as part of a criminal investigation,” and he said that no one in Polis’ office or the labor department, “with the potential exception of the governor himself,” actually believed that the subpoena was part of a criminal investigation.
The subpoena is not signed by a judge, and the federal statute that it cites is related to immigration enforcement.
In her email Tuesday, Wieman, Polis’ spokeswoman, did not address questions about whether the state had pursued or received any additional information confirming the existence of the investigation allegedly underpinning the subpoena. Nor did she address questions about whether Polis had directed any state resources to check on the children.
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NEW YORK — NEW YORK (AP) — Young jobseekers, challenged by a rapidly changing labor market, are having a tough time.
The U.S. unemployment rate for 22- to 27-year-old degree holders is the highest in a dozen years outside of the pandemic. Companies are reluctant to add staff amid so much economic uncertainty. The hiring slump is especially hitting professions such as information technology that employ more college graduates, creating nightmarish job hunts for the increasingly smaller number who do complete college. Not to mention fears that artificial intelligence will replace entry-level roles.
So, Citi Foundation identified youth employability as the theme for its $25 million Global Innovation Challenge this year. The banking group’s philanthropic arm is donating a half million dollars to each of 50 groups worldwide that provide digital literacy skills, technical training and career guidance for low-income youth.
“What we want to do is make sure young people are as prepared as possible to find employment in a world that’s moving really quickly,” said Ed Skyler, Citi Head of Enterprise Services and Public Affairs.
Employer feedback suggested to Citi that early career applicants lacked the technical skills necessary for roles many had long prepared to fill, highlighting the need for continued vocational training and the importance of soft skills.
Skyler pointed to the World Economic Forum’s recent survey of more than 1,000 companies that together employ millions of people. Skills gaps were considered the biggest barrier to business transformation over the next five years. Two-thirds of respondents reported planning to hire people with specific AI skills and 40% of them anticipated eliminating jobs AI could complete.
Some of Citi’s grantees are responding by teaching people how to prompt AI chatbots to do work that can be automated. But Skyler emphasized it was equally important that Citi fund efforts to impart qualities AI lacks such as teamwork, empathy, judgment and communication.
“It’s not a one-size-fits-all effort where we think every young person needs to be able to code or interface with AI,” Skyler said. “What is consistent throughout the programs is we want to develop the soft skills.”
Among the recipients is NPower, a national nonprofit that seeks to improve economic opportunity in underinvested communities by making digital careers more accessible. Most of their students are young adults between the ages of 18 and 26.
NPower Chief Innovation Officer Robert Vaughn said Citi’s grant will at least double the spaces available in a program for “green students” with no tech background and oftentimes no college degree.
Considering the tech industry’s ever-changing requirements for skills and certifications, he said, applicants need to demonstrate wide-ranging capabilities both in cloud computing and artificial intelligence as well as project management and emotional intelligence.
As some entry-level roles get automated and outsourced, Vaughn said companies aren’t necessarily looking for college degrees and specialized skillsets, but AI comfortability and general competency.
“It is more now about being able to be more than just an isolated, siloed technical person,” he said. “You have to actually be a customer service person.”
Per Scholas, a tuition-free technology training nonprofit, is another one of the grantees announced Tuesday. Caitlyn Brazill, its president, said the funds will help develop careers for about 600 young adults across Los Angeles, New York, Orlando, Chicago and the greater Washington, D.C area.
To keep their classes relevant, she spends a lot of time strategizing with small businesses and huge enterprises alike. Citi’s focus on youth employability is especially important, she said, because she hears often that AI’s productivity gains have forced companies to rethink entry-level roles.
Dwindling early career opportunities have forced workforce development nonprofits like hers to provide enough hands-on training to secure jobs that previously would have required much more experience.
“But if there’s no bottom rung on the ladder, it’s really hard to leap up, right?” Brazill said.
She warned that failing to develop new career pathways could hurt the economy in the long run by blocking young people from high growth careers.
Brookings Institution senior fellow Martha Ross said Citi was certainly right to focus on technology’s disruption of the labor market. But she said the scale of that disruption is “too big for philanthropy” alone.
“We did not handle previous displacements due to automation very well,” Ross said. “We left a lot of people behind. And we now have to decide if we’re going to replicate that or not.”
___
Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.
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NEW YORK — NEW YORK (AP) — Young jobseekers, challenged by a rapidly changing labor market, are having a tough time.
The U.S. unemployment rate for 22- to 27-year-old degree holders is the highest in a dozen years outside of the pandemic. Companies are reluctant to add staff amid so much economic uncertainty. The hiring slump is especially hitting professions such as information technology that employ more college graduates, creating nightmarish job hunts for the increasingly smaller number who do complete college. Not to mention fears that artificial intelligence will replace entry-level roles.
So, Citi Foundation identified youth employability as the theme for its $25 million Global Innovation Challenge this year. The banking group’s philanthropic arm is donating a half million dollars to each of 50 groups worldwide that provide digital literacy skills, technical training and career guidance for low-income youth.
“What we want to do is make sure young people are as prepared as possible to find employment in a world that’s moving really quickly,” said Ed Skyler, Citi Head of Enterprise Services and Public Affairs Ed Skyler.
Employer feedback suggested to Citi that early career applicants lacked the technical skills necessary for roles many had long prepared to fill, highlighting the need for continued vocational training and the importance of soft skills.
Skyler pointed to the World Economic Forum’s recent survey of more than 1,000 companies that together employ millions of people. Skills gaps were considered the biggest barrier to business transformation over the next five years. Two-thirds of respondents reported planning to hire people with specific AI skills and 40% of them anticipated eliminating jobs AI could complete.
Some of Citi’s grantees are responding by teaching people how to prompt AI chatbots to do work that can be automated. But Skyler emphasized it was equally important that Citi fund efforts to impart qualities AI lacks such as teamwork, empathy, judgment and communication.
“It’s not a one-size-fits-all effort where we think every young person needs to be able to code or interface with AI,” Skyler said. “What is consistent throughout the programs is we want to develop the soft skills.”
Among the recipients is NPower, a national nonprofit that seeks to improve economic opportunity in underinvested communities by making digital careers more accessible. Most of their students are young adults between the ages of 18 and 26.
NPower Chief Innovation Officer Robert Vaughn said Citi’s grant will at least double the spaces available in a program for “green students” with no tech background and oftentimes no college degree.
Considering the tech industry’s ever-changing requirements for skills and certifications, he said, applicants need to demonstrate wide-ranging capabilities both in cloud computing and artificial intelligence as well as project management and emotional intelligence.
As some entry-level roles get automated and outsourced, Vaughn said companies aren’t necessarily looking for college degrees and specialized skillsets, but AI comfortability and general competency.
“It is more now about being able to be more than just an isolated, siloed technical person,” he said. “You have to actually be a customer service person.”
Per Scholas, a tuition-free technology training nonprofit, is another one of the grantees announced Tuesday. Caitlyn Brazill, its president, said the funds will help develop careers for about 600 young adults across Los Angeles, New York, Orlando, Chicago and the greater Washington, D.C area.
To keep their classes relevant, she spends a lot of time strategizing with small businesses and huge enterprises alike. Citi’s focus on youth employability is especially important, she said, because she hears often that AI’s productivity gains have forced companies to rethink entry-level roles.
Dwindling early career opportunities have forced workforce development nonprofits like hers to provide enough hands-on training to secure jobs that previously would have required much more experience.
“But if there’s no bottom rung on the ladder, it’s really hard to leap up, right?” Brazill said.
She warned that failing to develop new career pathways could hurt the economy in the long run by blocking young people from high growth careers.
Brookings Institution senior fellow Martha Ross said Citi was certainly right to focus on technology’s disruption of the labor market. But she said the scale of that disruption is “too big for philanthropy” alone.
“We did not handle previous displacements due to automation very well,” Ross said. “We left a lot of people behind. And we now have to decide if we’re going to replicate that or not.”
___
Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.
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NEW YORK (AP) — Young jobseekers, challenged by a rapidly changing labor market, are having a tough time.
So, Citi Foundation identified youth employability as the theme for its $25 million Global Innovation Challenge this year. The banking group’s philanthropic arm is donating a half million dollars to each of 50 groups worldwide that provide digital literacy skills, technical training and career guidance for low-income youth.
“What we want to do is make sure young people are as prepared as possible to find employment in a world that’s moving really quickly,” said Ed Skyler, Citi Head of Enterprise Services and Public Affairs.
Employer feedback suggested to Citi that early career applicants lacked the technical skills necessary for roles many had long prepared to fill, highlighting the need for continued vocational training and the importance of soft skills.
Skyler pointed to the World Economic Forum’s recent survey of more than 1,000 companies that together employ millions of people. Skills gaps were considered the biggest barrier to business transformation over the next five years. Two-thirds of respondents reported planning to hire people with specific AI skills and 40% of them anticipated eliminating jobs AI could complete.
Some of Citi’s grantees are responding by teaching people how to prompt AI chatbots to do work that can be automated. But Skyler emphasized it was equally important that Citi fund efforts to impart qualities AI lacks such as teamwork, empathy, judgment and communication.
“It’s not a one-size-fits-all effort where we think every young person needs to be able to code or interface with AI,” Skyler said. “What is consistent throughout the programs is we want to develop the soft skills.”
Among the recipients is NPower, a national nonprofit that seeks to improve economic opportunity in underinvested communities by making digital careers more accessible. Most of their students are young adults between the ages of 18 and 26.
NPower Chief Innovation Officer Robert Vaughn said Citi’s grant will at least double the spaces available in a program for “green students” with no tech background and oftentimes no college degree.
Considering the tech industry’s ever-changing requirements for skills and certifications, he said, applicants need to demonstrate wide-ranging capabilities both in cloud computing and artificial intelligence as well as project management and emotional intelligence.
As some entry-level roles get automated and outsourced, Vaughn said companies aren’t necessarily looking for college degrees and specialized skillsets, but AI comfortability and general competency.
“It is more now about being able to be more than just an isolated, siloed technical person,” he said. “You have to actually be a customer service person.”
Per Scholas, a tuition-free technology training nonprofit, is another one of the grantees announced Tuesday. Caitlyn Brazill, its president, said the funds will help develop careers for about 600 young adults across Los Angeles, New York, Orlando, Chicago and the greater Washington, D.C area.
To keep their classes relevant, she spends a lot of time strategizing with small businesses and huge enterprises alike. Citi’s focus on youth employability is especially important, she said, because she hears often that AI’s productivity gains have forced companies to rethink entry-level roles.
Dwindling early career opportunities have forced workforce development nonprofits like hers to provide enough hands-on training to secure jobs that previously would have required much more experience.
“But if there’s no bottom rung on the ladder, it’s really hard to leap up, right?” Brazill said.
She warned that failing to develop new career pathways could hurt the economy in the long run by blocking young people from high growth careers.
Brookings Institution senior fellow Martha Ross said Citi was certainly right to focus on technology’s disruption of the labor market. But she said the scale of that disruption is “too big for philanthropy” alone.
“We did not handle previous displacements due to automation very well,” Ross said. “We left a lot of people behind. And we now have to decide if we’re going to replicate that or not.”
Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.
Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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The U.S. immigration crackdown will cause net job losses in the millions and will lower the annual rate of economic growth by almost one-third over the next decade, a new study estimates.
The Trump administration’s policies aimed at legal and illegal immigration would reduce the projected number of workers by 6.8 million by 2028 and 15.7 million by 2035, the National Foundation for American Policy’s study released Friday found. People entering the workforce won’t fully make up for the job losses, leading to a net reduction in the labor force by a projected 4 million workers by 2028 and 11 million in 2035.
“With the U.S.-born population aging and growing at a slower rate, immigrants have become an essential part of American labor force growth,” the think tank, which focuses on trade and immigration, said.
In fact, immigrant workers were responsible for 84.7% of the labor force growth in America between 2019 and 2024, according to the report.
The study takes into account many of Trump’s far-reaching immigration policies for those eligible to work in the country, including reducing and suspending refugee admissions, a travel ban on 19 countries, ending Temporary Protected Status, and prohibiting international students from working on Optional Practical Training and STEM OPT after completing their coursework. The analysis does not account for a new policy that requires U.S. companies to shell out $100,000 in one-time fees for new H-1B visas.
Trump’s immigration crackdown is already having an impact on the labor force.
The Bureau of Labor Statistics household survey shows a decline of 1.1 million foreign-born workers since the start of the Trump administration in January through August, according to the report.
And of the 6.8 million fewer projected workers in the U.S. labor force by 2028, 2.8 million would be due to changes in legal immigration policies, while 4 million would result from policies on illegal immigration, the study said
At the same time, it doesn’t look as though U.S.-born workers are entering the workforce en masse as foreign-born workers exit, the report said. Instead, the labor force participation rate for U.S.-born workers aged 16 and older has ticked lower to 61.6% in August from 61.7% last year, according to the report.
Labor economist and senior fellow at NFAP Mark Regets, said in the report it’s “wrong” to assume a decline in immigration helps U.S. workers when job growth slows.
“Immigrants both create demand for the goods and services produced by U.S.-born workers and work alongside them in ways that increase productivity for both groups,” Regrets said. “While it is just one factor, we shouldn’t be surprised that opportunities for U.S.-born workers are falling at the same time an estimated one million fewer immigrants may be in the labor force.”
But the White House says there’s a large pool of available U.S.-born workers.
“Over one in ten young adults in America are neither employed, in higher education, nor pursuing some sort of vocational training.” White House spokeswoman Abigail Jackson told Fortune in a statement, referencing a July 2024 CNBC article. “There is no shortage of American minds and hands to grow our labor force, and President Trump’s agenda to create jobs for American workers represents this Administration’s commitment to capitalizing on that untapped potential while delivering on our mandate to enforce our immigration laws.”
Previous reports have warned Trumps’ immigration policies also threaten negative economic consequences.
In September, the Congressional Budget Office projected 290,000 immigrants will be removed from the country between 2026 and 2029, which may create a labor shortage and drive up inflation.
And according to the NFAP study, Trump’s immigration policies will lower the projected average annual economic growth rate to 1.3% from 1.8% between fiscal year 2025 to fiscal year 2035.
There are also ramifications for the agriculture industry and food production. The Labor Department admitted earlier this month in a filing in the Federal Register that Trump’s immigration crackdown risked a “labor shortage exacerbated by the near total cessation of the inflow of illegal aliens.”
That’s not the only sector feeling the talent squeeze.
The $100,000 one-time fee for workers applying for new H-1B visas is expected to disrupt companies including Amazon, Microsoft and Meta, since they heavily recruit workers under this status.
And the policies are projected to have far-ranging effects on most areas of business, including a potential loss of hundreds of thousands of immigrant workers in sectors like information and educational and health services.
In addition, individuals affected by Trump’s travel ban on 19 different countries represent a significant part of the economy, the American Immigration Council, a nonprofit research organization and advocacy group, has estimated.
Households led by the recent arrivals from the countries earned $3.2 billion in household income, paid $715.6 million in federal, state and local taxes and held $2.5 billion in spending power, according to AIC.
“These nationals made important contributions in U.S. industries that are facing labor shortages and rely on foreign-born workers,” like hospitality, construction, retail trade and manufacturing, the report said.
But the White House said Trump will continue “growing our economy, creating opportunity for American workers, and ensuring all sectors have the workforce they need to be successful.”
Nan Wu, research director at AIC told Fortune the recent NFAP study may not even fully capture the broader impact of the Trump administration’s immigration enforcement efforts.
“Given the unprecedented scale of these actions, it’s difficult to quantify the chilling effect they may have on immigrants who might otherwise choose to move to or remain in the United States,” Wu said. “For instance, international students—who are a critical source of high-skilled talent—may increasingly opt to pursue education or career opportunities in other countries. This shift could significantly disrupt the U.S. talent pipeline, particularly in sectors that rely heavily on STEM expertise and innovation.”
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Maria worked cleaning schools in Florida for $13 an hour. Every two weeks, she’d get a $900 paycheck from her employer, a contractor. Not much — but enough to cover rent in the house that she and her 11-year-old son share with five families, plus electricity, a cellphone and groceries.
When she showed up at the job one morning, her boss told her that she couldn’t work there anymore. The Trump administration had terminated President Joe Biden’s humanitarian parole program, which provided legal work permits for Cubans, Haitians, Venezuelans as well as Nicaraguans like Maria.
“I feel desperate,’’ said Maria, 48, who requested anonymity to talk about her ordeal because she fears being detained and deported. “I don’t have any money to buy anything. I have $5 in my account. I’m left with nothing.’’
President Donald Trump’s sweeping crackdown on immigration is throwing foreigners like Maria out of work and shaking the American economy and job market. And it’s happening at a time when hiring is already deteriorating amid uncertainty over Trump’s erratic trade policies.
Immigrants do jobs — cleaning houses, picking tomatoes, painting fences — that most native-born Americans won’t, and for less money. But they also bring the technical skills and entrepreneurial energy that have helped make the United States the world’s economic superpower.
Trump is attacking immigration at both ends of spectrum, deporting low-wage laborers and discouraging skilled foreigners from bringing their talents to the United States.
And he is targeting an influx of foreign workers that eased labor shortages and upward pressure on wages and prices at a time when most economists thought that taming inflation would require sky-high interest rates and a recession — a fate the United States escaped in 2023 and 2024.
“Immigrants are good for the economy,” said Lee Branstetter, an economist at Carnegie-Mellon University. “Because we had a lot of immigration over the past five years, an inflationary surge was not as bad as many people expected.”
More workers filling more jobs and spending more money has also helped drive economic growth and create still-more job openings. Economists fear that Trump’s deportations and limits on even legal immigration will do the reverse.
In a July report, researchers Wendy Edelberg and Tara Watson of the centrist Brookings Institution and Stan Veuger of the right-leaning American Enterprise Institute calculated that the loss of foreign workers will mean that monthly U.S. job growth “could be near zero or negative in the next few years.’’
Hiring has already slowed significantly, averaging a meager 29,000 a month from June through August. (The September jobs report has been delayed by the ongoing shutdown of the federal government.) During the post-pandemic hiring boom of 2021-2023, by contrast, employers added a stunning 400,000 jobs a month.
The nonpartisan Congressional Budget Office, citing fallout Trump’s immigration and trade policies, downgraded its forecast for U.S. economic growth this year to 1.4% from the 1.9% it had previously expected and from 2.5% in 2024.
‘We need these people’
Goodwin Living, an Alexandria, Virginia nonprofit that provides senior housing, health care and hospice services, had to lay off four employees from Haiti after the Trump administration terminated their work permits. The Haitians had been allowed to work under a humanitarian parole program and had earned promotions at Goodwin.
“That was a very, very difficult day for us,” CEO Rob Liebreich said. “It was really unfortunate to have to say goodbye to them, and we’re still struggling to fill those roles.’’
Liebreich is worried that another 60 immigrant workers could lose their temporary legal right to live and work in the United States. “We need all those hands,’’ he said. “We need all these people.”
Goodwin Living has 1,500 employees, 60% of them from foreign countries. It has struggled to find enough nurses, therapists and maintenance staff. Trump’s immigration crackdown, Liebreich said, is “making it harder.’’
Trump’s immigration ambitions, intended to turn back what he calls an “invasion” at America’s southern border and secure jobs for U.S.-born workers, were once viewed with skepticism because of the money and economic disruption required to reach his goal of deporting 1 million people a year. But legislation that Trump signed into law July 4 — and which Republicans call the One Big Beautiful Bill Act — suddenly made his plans plausible.
The law pours $150 billion into immigration enforcement, setting aside $46.5 billion to hire 10,000 Immigration and Customs Enforcement (ICE) agents and $45 billion to increase the capacity of immigrant detention centers.
And his empowered ICE agents have shown a willingness to move fast and break things — even when their aggression conflicts with other administration goals.
Last month, immigration authorities raided a Hyundai battery plant in Georgia, detained 300 South Korean workers and showed video of some of them shackled in chains. They’d been working to get the plant up and running, bringing expertise in battery technology and Hyundai procedures that local American workers didn’t have.
The incident enraged the South Koreans and ran counter to Trump’s push to lure foreign manufacturers to invest in America. South Korean President Lee Jae Myung warned that the country’s other companies might be reluctant about betting on America if their workers couldn’t get visas promptly and risked getting detained.
Sending Medicaid recipients to the fields
America’s farmers are among the president’s most dependable supporters.
But John Boyd Jr., who farms 1,300 acres of soybeans, wheat and corn in southern Virginia, said that the immigration raids — and the threat of them — are hurting farmers already contending with low crop prices, high costs and fallout from Trump’s trade war with China, which has stopped buying U.S. soybeans and sorghum.
“You got ICE out here, herding these people up,’’ said Boyd, founder of the National Black Farmers Association . “(Trump) says they’re murderers and thieves and drug dealers, all this stuff. But these are people who are in this country doing hard work that many Americans don’t want to do.’’
Boyd scoffed at U.S. Agriculture Secretary Brooke Rollins’ suggestion in July that U.S.-born Medicaid recipients could head to the fields to meet work requirements imposed this summer by the Republican Congress. “People in the city aren’t coming back to the farm to do this kind of work,’’ he said. “It takes a certain type of person to bend over in 100-degree heat.’’
The Trump administration itself admits that the immigration crackdown is causing labor shortages on the farm that could translate into higher prices at the supermarket.
“The near total cessation of the inflow of illegal aliens combined with the lack of an available legal workforce,’’ the Labor Department said in an Oct. 2 filing the Federal Register, “results in significant disruptions to production costs and (threatens) the stability of domestic food production and prices for U.S consumers.’’
“You’re not welcome here”
Jed Kolko of the Peterson Institute for International Economics said that job growth is slowing in businesses that rely on immigrants. Construction companies, for instance, have shed 10,000 jobs since May.
“Those are the short-term effects,’’ said Kolko, a Commerce Department official in the Biden administration. “The longer-term effects are more serious because immigrants traditionally have contributed more than their share of patents, innovation, productivity.’’
Especially worrisome to many economists was Trump’s sudden announcement last month that he was raising the fee on H-1B visas, meant to lure hard-to-find skilled foreign workers to the United States, from as little as $215 to $100,000.
“A $100,000 visa fee is not just a bureaucratic cost — it’s a signal,” Dany Bahar, senior fellow at the Center for Global Development, said. “It tells global talent: ‘You are not welcome here.’’’
Some are already packing up.
In Washington D.C., one H-1B visa holder, a Harvard graduate from India who works for a nonprofit helping Africa’s poor, said Trump’s signal to employers is clear: Think twice about hiring H-1B visa holders.
The man, who requested anonymity, is already preparing paperwork to move to the United Kingdom. “The damage is already done, unfortunately,’’ he said.
Wiseman reported from Washington and Salomon from Miami.
AP Writers Fu Ting and Christopher Rugaber in Washington contributed to this report.
Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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In a third round of layoffs, Newmont Corp. plans to let go 65 employees at its headquarters in Denver, bringing to 107 the number of recently announced staff reductions.
Newmont, the world’s largest mining company, notified state and Denver officials Wednesday that the layoffs are expected to occur around Dec. 14. The announcement follows one in August that 19 employees would be laid off and one Oct. 1 that 23 positions, primarily in its headquarters, would be terminated on or around Nov. 30.
Many of the targeted positions are management jobs. Newmont said in its notice that the reductions don’t “constitute a shutdown or closure of all operations at the company’s Denver headquarters.”
Newmont said the employees will be offered severance.
The latest notice of layoffs is part of a process the company has been working through, according to a statement from Newmont on Friday. Newmont won’t have a total number of affected employees until the process is finished, the company said.
Newmont has said the layoffs are part of a plan announced in February that includes both labor and non-labor reductions. The company said in August that it is taking several steps “to reduce our cost base and improve productivity” to deliver on commitments to shareholders and partners.
The cuts come as gold prices have hit record heights, rising above $4,000 an ounce for the first time. The price was about $4,265 per ounce Friday, down slightly from recent highs of above $4,300 per ounce.
The New York Times reported that gold has jumped more than 50% in value this year.
Newmont’s cost-cutting follows its $19.5 billion acquisition of Australian-based Newcrest Mining Ltd. in late 2023. Newmont completed its sale of the Cripple Creek & Victor Gold Mine in March. SSR Mining Inc. paid Newmont $100 million in cash and agreed to up to $175 million in additional payments for the Colorado mine.
Tom Palmer will resign as Newmont CEO and from the board of directors on Dec. 31, according to statement by Newmont. He has been CEO since 2019.
Natascha Viljoen, president and chief operating officer, will succeed Palmer and will join the board Jan. 1, 2026. Palmer will serve as strategic adviser until his retirement at the end of March.
Palmer joined Newmont in 2014 as a senior vice president, leading its operations in Indonesia. By 2016, he was named executive vice president and chief operating officer.
Palmer has been in the mining industry for nearly 40 years. He is a fourth-generation miner from Broken Hill in New South Wales, Australia.
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Judith Kohler
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WASHINGTON (AP) — A sharp slowdown in hiring poses a growing risk to the U.S. economy, Federal Reserve Chair Jerome Powell said Tuesday, a sign that the Fed will likely cut its key interest rate twice more this year.
Powell said in a speech in Philadelphia that despite the federal government shutdown cutting off official economic data, “the outlook for employment and inflation does not appear to have changed much since our September meeting,” when the Fed reduced its key rate for the first time this year.
Fed officials at that meeting also forecast that the central bank would reduce its rate twice more this year and once in 2026. Lower rates from the Fed could reduce borrowing costs for mortgages, car loans, and business loans. Powell spoke before a meeting of the National Association of Business Economics.
Powell reiterated a message he first delivered after the September meeting, when he signaled that the Fed is slightly more worried about the job market than its other congressional mandate, which is to keep prices stable. Tariffs have lifted the Fed’s preferred measure of inflation to 2.9%, he said, but outside the duties there aren’t “broader inflationary pressures” that will keep prices high.
“Rising downside risks to employment have shifted our assessment of the balance of risks,” he said.
Economists said Powell’s remarks solidified expectations for further rate cuts, starting at its next meeting Oct. 28-29.
“While there was little doubt the (Fed) was angled to cut rates at its next meeting, today’s remarks were strong confirmation of that expectation,” Michael Feroli, chief U.S. economist at JPMorgan Chase, said in a note to clients.
Powell also said that the central bank may soon stop shrinking its roughly $6.6 trillion balance sheet. The Fed has been allowing roughly $40 billion of Treasuries and mortgage-backed securities to mature each month without replacing them.
“We may approach that point in coming months,” Powell said.
The shift could slightly lower borrowing costs over time. Economists at BMO Capital Markets estimated that the yields on Treasury securities ticked down slightly after Powell’s remarks.
Separately, Powell spent most of his speech defending the Fed’s practice of buying longer-term Treasury bonds and mortgage-backed securities in 2020 and 2021, which were intended to lower longer-term interest rates and support the economy during the pandemic.
Yet those purchases have come under a torrent of criticism from Treasury Secretary Scott Bessent, as well as some of the candidates floated by the Trump administration to replace Powell when his term as Chair ends next May.
Bessent said in an extended critique published earlier this year that the huge purchases of bonds during the pandemic worsened inequality by boosting the stock market, without providing noticeable benefits to the economy.
Other critics have long argued that the Fed kept implementing the purchases for too long, keeping interest rates low even as inflation began to spike in late 2021. The Fed beginning in 2021 stopped the purchases and then sharply boosted borrowing costs to combat inflation.
“With the clarity of hindsight, we could have—and perhaps should have—stopped asset purchases sooner,” Powell said. “Our real-time decisions were intended to serve as insurance against downside risk.”
Yet Powell said that moving earlier would not have prevented the COVID-era inflation spike: “Stopping sooner could have made some difference, but not likely enough to fundamentally alter the trajectory of the economy.”
Powell also said the purchases were intended to avoid a breakdown in the market for Treasury securities, which could have sent interest rates much higher.
The Fed chair also addressed a move by a bipartisan group of senators to stop the central bank from paying interest on the cash reserves banks park at the Fed. A measure to prevent the Fed from doing so was defeated in the Senate last week by the lopsided vote of 83-14.
Still, it garnered support from both parties, including Republican senators Rand Paul from Kentucky and Ted Cruz from Texas, as well as Massachusetts Democratic Sen. Elizabeth Warren.
Powell said that without the ability to pay interest on reserves, the Fed “would lose control over rates” and wouldn’t be able to carry out its mission. The Fed lifts the short-term interest rate it controls when it wants to cool borrowing and spending and slow inflation, while it cuts the rate to encourage borrowing, growth, and hiring.
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BUENOS AIRES, Argentina — BUENOS AIRES, Argentina (AP) — The factory floor used to roar.
Walking around his textile mill in southern Buenos Aires, Luciano Galfione pointed out the up-to-the-minute machines that once whirred and clattered as 200 employees churned out fabric to be transformed into athleisure and other apparel for Argentina’s vast middle class.
But on Monday afternoon, the factory was so quiet that Galfione’s footsteps rang clear through the compound. A handful of workers at the Galfione Group factory in Argentina’s capital spooled yarn and dyed cloth.
Almost two years after libertarian President Javier Milei stormed to power on a promise to rescue Argentina’s crisis-stricken economy through harsh austerity and free-market reforms, falling orders and surging competition have forced Galfione to cut operations by 80%, lay off or suspend half his staff and use his own savings to keep his family’s 78-year-old firm afloat.
Other companies have simply closed their doors. Over 17,600 businesses — among them 1,800 manufacturers and 380 textile companies — have folded in the last year and a half, according to Fundación Pro Tejer, a nonprofit representing textile manufacturers.
“We’re seeing an industry in crisis, and it’s about to go bankrupt,” said Galfione, who also runs Fundación Pro Tejer. “Not only textiles. Textiles are just the first and fastest to fall.”
As Argentina heads to Oct. 26 midterm elections widely seen as a referendum on Milei’s policies, Galfione’s troubles reflect bigger shocks jolting the country. The economy has sputtered. Cheap imports have gutted manufacturing. Spending has stumbled, squeezed by higher unemployment and lower wages.
The turmoil engulfing Argentine financial markets began when voters in the manufacturing belt of suburban Buenos Aires — a region that for decades represented the dream of national industry nurtured by tariff protection — punished Milei in a provincial election last month.
The scale of Milei’s humiliation triggered a sharp peso sell-off and sent officials scrambling to secure $20 billion in financing from a friendly Trump administration.
President Donald Trump, who sees a kindred spirit and fellow culture warrior in Argentina’s chain saw wielding leader, shocked Argentines and Americans alike Tuesday by warning that the $20 billion was contingent on Milei’s success in what is shaping up to be a hotly contested legislative election.
Treasury Secretary Scott Bessent went further on Wednesday, saying that the U.S. could tap investment funds to provide Argentina with up to $40 billion.
“Just helping a great philosophy take over a great country,” Trump explained after meeting Milei at the White House.
Thousands of miles away, many Argentines are losing patience with that philosophy.
Those interviewed on the streets of Buenos Aires Wednesday had no illusions about Trump’s lifeline fixing their problems.
“Let’s say they give us this money from abroad. What am I going to do with it?” asked Walter Willatt, a 56-year-old newsstand owner whose son was just laid off from a local Toyota dealership. “If the economy revives it will have to be through domestic consumption.”
Over a year ago, markets cheered as Milei fulfilled his flagship promise to reduce the runway inflation that he inherited from his populist predecessors. Many Argentines — who had grown accustomed to supermarkets revising prices upward everyday — hailed Milei’s program as a miraculous outbreak of normalcy in a notoriously topsy-turvy economy.
But today, price stability is old news as Argentines contend with a lengthening list of worries.
Unemployment in Buenos Aires Province climbed to 9.8% in the second quarter of this year, compared to 7.3% during the same period in 2023, before Milei entered office. Salaries nationwide haven’t kept up with inflation. Milei’s major subsidy cuts mean that even if prices have stabilized, Argentines are paying more for bus fares, utility bills and healthcare.
“Milei’s challenge is that the public now assumes inflation has gone down, that’s a given,” said Marcelo J. García, Director for the Americas for the Horizon Engage political risk consultancy firm. “There’s a new generation of demands. The economy needs to grow, there needs to be job creation. I’m not sure that government is prepared to meet those demands.”
Rodolfo Núñez, a 43-year-old former factory worker in Pilar, outside Buenos Aires, said he voted for Milei in 2023 because he wanted change. Then the blows began to fall. His daughter’s epilepsy medication shot up in price. His retired parents struggled to afford groceries on their $300-a-month pension.
On Aug. 29, the ceramic factory where he worked for the last 18 years shut down. The company, ILVA, fired all the plant’s 300 workers in a WhatsApp message that cited the economic crisis, leaving Núñez and his colleagues in limbo, without severance pay or health insurance.
ILVA did not respond to a request for comment.
“What Milei promised, he didn’t do. He messed with retirees, he messed with my daughter and he messed with the workers,” he said from outside the padlocked ILVA factory where dozens of dismissed employees now camp out in protest, the air filled with smoke from burning tires and roasting chicken.
“What do I tell my landlord? That I can’t pay her next month? Where am I going to go?”
Núñez said he voted for the opposition in last month’s regional elections.
Government statistics show poor and middle-class households cutting back on all but essential spending. Clothing sales, for instance, fell 10.9% in September compared to the year before. The collapsed consumption reverberates down the supply chain.
“We’re reducing costs as much as we can, trying to survive with very low production and without making money,” said Alejandro Schvartz, owner of Visuar, a household appliance vendor and producer whose sales dropped roughly 25% in the first half of this year.
Other policies that Milei depends on to fight inflation — such as high interest rates and central bank interventions to defend the peso — further erode the competitiveness of Argentine industry.
The peso has become so strong that shoppers now get more bang for their buck by splurging anywhere but Argentina — from Chile’s malls to Brazil’s beaches.
Upon taking office, Milei tore down trade barriers and relaxed import restrictions, opening Argentina to an avalanche of cheaper industrial and textile products. Chinese e-commerce companies like Temu and Shein pay no import duties for products valued below $400.
But Milei maintained sky-high taxes for Argentine manufacturers, giving local companies no choice but to pass on the cost to consumers.
“This is not a fair playing field,” said Pablo Yeramian, director of the Argentine textile company Norfabril, who has already cut 20% of his staff.
As scenes of Milei beaming beside Trump in Washington flashed across Argentine televisions on Tuesday, some manufacturers couldn’t help wishing that the similarity between the two presidents was, in at least one way, more than just rhetorical.
“No developed country in the world surrenders its industrial sovereignty,” said Galfione, pointing to Trump’s “Made in America” ambitions for the U.S. “I think instead of doing what the U.S. tells us, we should do what they do.”
___
Associated Press writer Andrea Vulcano in Buenos Aires, Argentina, contributed to this report.
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NEW YORK (AP) — With the U.S. experiencing a significant hiring slowdown, it’s a daunting time to be looking for a job. Many workers are staying put instead of changing jobs to secure better pay. Artificial intelligence tools increasingly screen the resumes of applicants. Now may seem like an inappropriate time to request a raise.
But sticking around doesn’t mean wages and salaries have to stagnate. Career experts say it’s not wrong, even in a shaky economy, to ask to be paid what you’re worth. Raises aren’t even necessarily off the table at organizations that are downsizing, according to some experts.
“A lot of people think if their company has done layoffs, the likelihood of getting a raise is pretty low,” said Jamie Kohn, a senior director in the human resources practice at business research and advisory firm Gartner. “And that might be true, but the the other way to think about it is that this company has already decided to reinvest in you by keeping you on.”
This article is part of AP’s Be Well coverage, focusing on wellness, fitness, diet and mental health. Read more Be Well.
If you’ve taken on greater responsibilities at work and have received strong performance reviews, or if you’ve learned you’re paid substantially less than colleagues or competitors with similar levels of experience, then it may be the right time to ask for a pay adjustment.
“They know that you’re taking on more work, especially if you’ve had layoffs on your team,” Kohn continued. “At that point, it is very hard for them to lose an employee that you know they now are relying on much more.”
Another signal that it’s time to ask for an adjustment is if you’re working a second job to make ends meet or your current financial situation is causing angst that impacts job performance, said Rodney Williams, co-founder of SoLo Funds, a community finance platform.
“There’s nothing wrong with saying, ’Hey, I need to raise my financial position. I’m willing to do more,” Williams said. “I’m willing to show up earlier, I’m willing to leave later, I’m willing to help out, maybe, and do other things here.”
Some people view asking for more compensation as less risky than switching to a new job. “There is a sense of not wanting to be ‘last in, first out’ in a potential layoff situation,” said Kohn.
Before starting the compensation conversation, do some research on current salaries. You can find out what people with comparable experience are making in your industry by searching on websites such as Glassdoor, where people self-report salaries, or ZipRecruiter, which gathers pay data from job postings and other sources.
Three years ago, a lot of people asked for 20% pay increases because of price inflation and high employee turnover coming out of the coronavirus pandemic, Kohn said. Companies no longer are considering such big bumps.
“Right now, I think you could say that you are worth 10% more, but you’re unlikely to get a 10% pay increase if you ask for it,” she said.
Your success also depends on your recent performance reviews. “If you’ve been given additional responsibilities, if you are operating at a level that would be a promotion, those might be situations where asking for a higher amount might be worth it,” Kohn said.
Many people view the topic as taboo, but telling coworkers what you make and asking if they earn more may prove instructive. Trusted coworkers with similar roles are potential sources. People who were recently hired or promoted may supply a sense of the market rate, Kohn said.
“You can say, ‘Hey, I’m trying to make sure I’m being paid equitably. Are you making over or under X dollars?’ That’s one of my favorite phrases to use, and it invites people into a healthy discussion,” Sam DeMase, a career expert with ZipRecruiter, said. “People are way more interested in talking about salary than you might think.”
You can also reach out to people who left the company, who may be more willing to compare paychecks than current colleagues, DeMase said.
Keep track of your accomplishments and positive feedback on your work. Compile it into one document, which human resources professionals call a “brag sheet,” DeMase said. If you’re making your request in writing, list those accomplishments when you ask for a raise. If the request is made in a conversation, you can use the list as talking points.
Be sure to list any work or responsibilities that typically would not have been part of your job description. “Employers are wanting employees to do more with less, so we need to be documenting all of the ways in which we’re working outside of our job scope,” DeMase said.
Also take stock of the unique skills or traits you bring to the team.
“People tend to overestimate our employers’ alternatives,” said Oakbay Consulting CEO Emily Epstein, who teaches negotiation courses at Harvard University and the University of California, Berkeley. “We assume they could just hire a long line of people, but it may be that we bring specialized expertise to our roles, something that would be hard to replace.”
Don’t seek a raise when your boss is hungry or at the end of a long day because the answer is more likely to be no, advises Epstein, whose company offers training on communication, conflict resolution and other business skills. If they’re well-rested and feeling great, you’re more likely to succeed, she said.
Getting a raise is probably easier in booming fields, such as cybersecurity, while it could be a tough time to request one if you work in an industry that is shedding positions, Epstein said.
By the same token, waiting for the perfect time presents the risk of missing out on a chance to advocate for yourself.
“You could wait your whole life for your boss to be well-rested or to have a lot of resources,” Epstein said. “So don’t wait forever.”
If your request is denied, having made it can help set the stage for a future negotiation.
Ask your manager what makes it difficult to say yes, Epstein suggested. “Is it the precedent you’d be establishing for this position that might be hard to live up to? Is it fairness to the other people in my position? Is it, right now the company’s struggling?” she said.
Ask when you might revisit the conversation and whether you can get that timeframe in writing, DeMase said.
Laura Kreller, an executive assistant at a university in Louisiana, recently earned a master’s degree and asked for her job description to change to reflect greater responsibilities and hopefully higher pay. Her boss was kind but turned her down, citing funding constraints. Kreller said she has no regrets.
“I was proud of myself for doing it,” she said. “It’s better to know where you stand.”
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