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Tag: unemployment rate

  • US economy added 50,000 jobs in December, capping off one of the weakest years of job gains in decades

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    (CNN) — Hiring slowed more than expected in December, a sluggish end to what was one of the weakest years of job growth in decades, a dynamic that further amplified America’s affordability crisis.

    The US economy added an estimated 50,000 jobs last month, slowing from a downwardly revised 56,000 jobs added in November, according to Bureau of Labor Statistics data released Friday.

    Still, the unemployment rate edged lower to 4.4% from a revised 4.5% in November.

    Economists were expecting a net gain of 55,000 jobs in December and an unemployment rate of 4.5%, according to FactSet consensus estimates.

    With December’s estimated job gains, which are subject to revision, the US economy added just 584,000 jobs last year. Outside of recession years, that’s the weakest annual job growth seen since 2003, BLS data shows.

    And those meager gains were driven almost entirely by a couple of industries.

    “The United States is in a jobless boom,” Heather Long, chief economist at Navy Federal Credit Union, said in an interview with CNN. “There was almost no hiring in 2025 … we would be talking about job losses in 2025, if it weren’t for health care and social assistance.”

    Unemployment becoming a ‘permanent state’

    In addition to the tepid gains recorded for December, October and November’s payroll estimates were revised lower by a combined 76,000 jobs.

    Even still, the meager pace of employment growth is actually even weaker than the December report shows – something that will become clearer in the January jobs report.

    That’s when the BLS will release the results of its annual benchmarking process that squares up the more real-time survey-drawn monthly estimates with the heavily lagged (but more accurate) payroll figures from employers’ quarterly tax filings. The preliminary estimate, released in August, was that 911,000 fewer jobs were likely added for the year ended in March 2025.

    “With these revisions, the story of payroll employment in 2025 will convert, ex post facto, from ‘snail-like growth’ to ‘recessionary-like conditions,’” Brian Bethune, a financial economist and professor at Boston College, wrote in commentary on Friday.

    This low-hire, low-fire labor market has resulted in more people on the outside looking in. In December, the share of people who were unemployed for 27 weeks or more rose to 26%.

    That indicates “unemployment is increasingly becoming a permanent state rather than a temporary transition,” Nicole Bachaud, ZipRecruiter’s labor economist, wrote in a note on Friday.

    Still, Friday’s report did have a couple of bright spots, which included stronger-than-expected wage gains. Average hourly earnings rose 0.3% for the month and picked up to 3.8% for the year – a modest gain over inflation.

    A deep hiring chill since April

    The labor market was already slowing, heading into 2025, as it continued to normalize following the seismic economic impacts of the Covid-19 pandemic.

    However, the gradual cooling turned sharply into a freeze by the spring. About 85% of the year’s job gains occurred in the first four months of the year, Long noted.

    In April, President Donald Trump made his “Liberation Day” announcement of a massive suite of broad and steep tariffs on many of the goods imported into the country.

    That and other dramatic policy shifts sent uncertainty surging higher and tossed an ice bath on sentiment in the process.

    Tariffs, and the uncertainty surrounding them, were one of three big factors that contributed to the “hiring recession” that engulfed pretty much all industries last year, Long said in an interview with CNN.

    In addition to tariffs, jobs continued to be scaled back in industries that over-hired during the pandemic. Additionally, the rise of artificial intelligence played a role as well, she said.

    “What happened with AI is firms needed to use their cash to invest in AI, and so they pulled back on hiring in order to free up that cash,” she said. “It wasn’t so much like, ‘I’m going to use the robot to replace the human.’ It was, ‘I need the dollars to go to tech investment instead of human investment.’”

    What resulted were muted employment gains – or even outright losses –across most industries.

    The lone exceptions were health care – an industry growing as a result of an aging population – and leisure and hospitality, which has reaped some of the spoils from an increasingly bifurcated economy, where well-heeled Americans see continued wealth gains while a larger share of middle- and lower-income households are experiencing increased strain.

    That was again indeed the case in December.

    Leisure and hospitality businesses saw net job gains of 47,000, while health care and social assistance added 38,500 jobs, BLS data showed. Jobs were shed across goods-producing businesses, particularly those in manufacturing, as well as retail trade (where seasonal hiring wasn’t as flush as in years past)

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    Alicia Wallace and CNN

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  • German unemployment rate ticks down to 6.1% in November

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    Germany’s unemployment rate fell slightly to 6.1% in November, official figures showed on Friday.

    The rate dropped by 0.1 percentage point from October, with the number of unemployed people in the country falling by 26,000 to 2.855 million, according to data from the Federal Employment Agency.

    Nevertheless, 111,000 more people are unemployed than in November 2024, with the rate up 0.2 percentage points.

    “The weakness of the economy persists and the labour market remains without momentum,” said employment agency chairwoman Andrea Nahles.

    “Unemployment and underemployment decreased in November as is usual for the season,” she said. “The number of people in work is stagnating and labour demand remains subdued.”

    The German economy, Europe’s largest, has been languishing in recent years, with the third quarter of 2025 failing to deliver a long-expected rebound.

    US tariffs, global trade headwinds and competition from China are all weighing on the country’s industrial base.

    Vacancies declined in November, although there were signs of some low-level stabilization. An overall 624,000 open positions were registered with the employment agency, 44,000 fewer than in November 2024.

    There was also a drop in the number of people placed on reduced working hours under a government scheme aimed at helping businesses through periods of low output.

    The November figures are based on data available up to November 12.

    According to the Nuremberg-based statisticians, 34,000 people were registered for reduced hours from November 1-24, although it will only be known later how many actually had their hours cut.

    The latest available data showed that in September, 209,000 employees received benefits for working reduced hours – 37,000 more than in the previous month, mainly for seasonal reasons, but 8,000 fewer than in September 2024.

    Citizens’ benefits down

    An estimated 986,000 people received unemployment pay in November, 96,000 more than a year earlier.

    The number of employable recipients of citizens’ benefit – which covers basic income support for jobseekers – was calculated at 3,819,000 in November.

    Compared with November 2024, this represented a decline of 122,000 people, the agency said. Around 7% of people of working age living in Germany were in need of assistance.

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  • The US economy added 119,000 jobs in September, but unemployment rose to a nearly four-year high

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    (CNN) — long-awaited jobs report offered a mixed picture of the US labor market.

    The economy added 119,000 jobs in September, an unexpected rebound for the labor market — but it comes as the overall economy shows signs of slowing.

    Economists were expecting 50,000 jobs to have been added and an unemployment rate that remained at 4.3%, according to FactSet.

    Delayed for seven weeks due to the government shutdown, the latest snapshot of America’s job market showed that unemployment rose in September to the highest level in nearly four years.

    In addition, August’s tepid job gains of 22,000 were revised to a job loss of 4,000 jobs and July was revised down by 7,000 jobs, according to Bureau of Labor Statistics data released Thursday.

    The health care and social assistance sector continued to drive overall employment growth. Those sectors added an estimated 57,100 jobs in September, accounting for nearly half of the overall gains. Leisure and hospitality contributed 47,000 jobs during a month with unseasonably warm weather.

    Jobs were lost in sectors such as transportation and warehousing (-25,300), temporary help services (-15,900) and manufacturing (-6,000).

    Although the September employment data has been on the shelf since early October, it provides a critical snapshot of the labor market at a time when tariffs, stubborn inflation and elevated interest rates continue to slow the US economy.

    Summer of job losses

    Plus, Thursday’s report might very well be the last clean jobs report for a couple of months, since the shutdown mucked up the finely tuned process of data collection and analysis during October and part of November. The BLS on Wednesday announced that there will not be a separate October jobs report published but instead some of that data will be included in the November report scheduled for December 16.

    Despite the stronger-than-expected September gains, this year is still on pace for the weakest employment growth since the pandemic and, before that, the Great Financial Crisis.

    “The job market was really weak in the summer, and it didn’t improve much in September,” said Heather Long, chief economist at Navy Credit Union. “What we learned today is that both June and August had negative job growth, so, shedding jobs; 119,000 is pretty good for September, but when you step back, the average (monthly job gain) of the past four months is in the low 40,000s.”

    “So, it looks very weak,” she added.

    Unemployment, a closely watched recession indicator, ticked higher in September, rising to the highest rate since October 2021.

    However, driving the jobless rate higher was an increase in the labor force – primarily an uplift in more people looking for work, versus a sharp increase in layoffs, BLS data shows.

    Low-fire, low-hire, low-opportunity market

    The job gains remain heavily concentrated. Two sectors – health care and social assistance, and leisure and hospitality – accounted for 87% of September’s job growth.

    But in a labor market that’s been in a low-hire, low-fire slog, there are also few opportunities for those seeking work. On average, it’s taking people six months to find work, according to the latest BLS data.

    The latest unemployment claims data supports that trend: In a separate report on Thursday, the Labor Department reported that an estimated 1.974 million people filed continuing claims for unemployment insurance for the week ended November 8, hitting a fresh four-year high.

    Initial claims, which are considered the best proxy for layoff activity, fell to 220,000 last week, remaining well below more concerning thresholds (300,000 to 400,000 range, consistently).

    “If I had to characterize it, it still looks a lot like ‘no-hire, no-fire,’” Long said. “I do worry, given the number of industries that are starting to fire, that this is starting to look like ‘no-hire, start-to-fire.’”

    ‘Cold water’ for a Fed cut

    Despite the mixed bag of data, the September report “could throw cold water” on the Federal Reserve cutting interest rates further when it meets in December, Kathy Bostjancic, chief economist at Nationwide, wrote in a note on Thursday.

    “The sharp rebound in employment gains, up 119,000 in September following the downwardly revised negative 4,000 print in August soothes concerns that the labor market was on the precipice of a large downturn and removes urgency for another rate cut,” she wrote.

    Still, because of the historic government shutdown, the September jobs report will be the freshest official monthly employment snapshot available when the Fed makes its next interest rate decision on December 10. The partial October and full November data won’t come out until the following week.

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    Alicia Wallace and CNN

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  • New England has some of the happiest states in the US: Where did Connecticut rank?

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    Cold winters and bad drivers didn’t stop many New England states from being ranked some of the “happiest” in the United States in a new WalletHub study.

    In the ranking, released Sept. 8, WalletHub looked at 30 metrics, including depression rate, feelings of productivity, income growth and unemployment rate, across all 50 states to determine which states are the happiest.

    “In addition to pursuing your passions, having a good work-life balance and maintaining an emotional support network, another key way to boost your happiness is living in the right place,” WalletHub analyst Chip Lupo said in a statement. “The happiest states are those that provide above-average quality of life in a wide variety of areas, from strong state economies and high quality physical and mental health care to adequate amounts of leisure time and good weather.”

    It found that three New England states are in the top 10 nationally for happiness.

    A Pew Research study reported in 2020 that 54% of Americans believe marriage is important to living a fulfilled life. According to a 2025 article in Psychology Today, though, marriage isn’t the ironclad predictor of happiness that it once was.

    Which New England states are the happiest?

    Connecticut was the highest ranked New England state for happiness.

    It was ranked fifth for emotional and physical well-being, 11th for work environment, and 8th for community and environment rank. It also had the fourth lowest suicide rate and the fifth fewest work hours. However, it had the fourth lowest income growth.

    New Hampshire and Massachusetts were eighth and ninth, respectively.

    Rhode Island, Vermont and Maine are the least happy states in New England, according to the ranking, coming in at 26th, 29th, and 33rd respectively.

    What states are the happiest?

    Hawaii was ranked the happiest state by WalletHub for the second year in a row, boasting the highest levels of life satisfaction and the second-lowest depression rate in the nation.

    Here are the top 10 happiest states.

    What states are the least happy?

    West Virginia was ranked last in WalletHub’s list of happiest states. They also found it had the highest share of adult depression, the second lowest sleep rate and the fourth lowest sports participation rate.

    Here are the top 10 least happy states.

    This article originally appeared on wickedlocal.com: How happy is your state? Three New England states make top 10 list

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  • Americans are feeling a lot worse about the state of the economy

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    (CNN) — American consumers are downbeat about the economy, according to preliminary results of a monthly survey conducted by the University of Michigan.

    The index measuring consumer sentiment fell unexpectedly this month to 55.4 from 58.2 in August as inflation is on the rise and job prospects are worsening. September’s reading also represents a 21% decline compared to a year ago, well before President Donald Trump took office and raised tariffs on practically everything the country imports.

    In addition to inflation and the labor market, tariffs also remain a concern for consumers, Joanne Hsu, the survey’s director, noted.

    “Trade policy remains highly salient to consumers, with about 60% of consumers providing unprompted comments about tariffs during interviews,” Hsu, said in a statement, noting that the same thing happened in the previous month.

    Economists polled by FactSet had been anticipating a minor improvement in consumer sentiment from August. Despite sentiment that’s near historic lows in a survey that goes back to the early 1950s, consumers are still feeling slightly better about the economy now compared to April and May during Trump’s initial rollout of so-called “reciprocal” tariffs, according to prior readings.

    The survey also spotlights what appears to be an increasingly bifurcated economy between income classes, where higher-income Americans continue to spend relatively freely and are feeling more optimistic about the state of the economy, while lower and middle-income Americans are cutting back and are more worried.

    Whiffs of stagflation

    While the economy is nowhere close to where it was in the 1970s and 1980s, when the nation’s annual inflation rate and unemployment rate both hit double-digit levels, recent employment and inflation data have led to mounting concerns of stagflation – when the economy slows significantly while inflation accelerates.

    Consumer prices rose 0.4% last month, bringing the annual inflation rate to 2.9%, according to Consumer Price Index data released Thursday. Meanwhile, there’s a laundry list of recent data pointing to a weakening labor market.

    For example, first-time applications for unemployment benefits surged last week to their highest level in four years. Also for the first time in four years, there are more people looking for work than there are jobs available for them.

    To top it off, the August employment report showed employers hired just 22,000 new workers and the unemployment rate rose to 4.3%, the highest level since 2021. The labor force snapshot also revealed that the US economy lost 13,000 workers in June, marking the first month since 2020 when employers laid off more workers than they hired.

    “Economic sentiment declined more than expected in September largely because Americans are fearful of losing their jobs,” Heather Long, chief economist at Navy Federal Credit Union, said in a statement on Friday.

    This string of data has essentially guaranteed the Federal Reserve will cut interest rates at its monetary policy meeting next week after having held rates steady for close to a year. Traders are also now betting on cuts at the subsequent two meetings this year, which has helped push stocks to record highs.

    This story has been updated with additional developments and context.

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    Elisabeth Buchwald and CNN

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  • Job growth stalls: US economy added just 22,000 jobs in August and unemployment rose to highest level since 2021

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    (CNN) — The US job market is stalling out.

    Job growth slowed to a crawl in August, and the unemployment rate rose to its highest level in nearly four years, indicating the US labor market is growing stagnant.

    The economy added just 22,000 jobs last month and the unemployment rate rose to 4.3% from 4.2%, according to the Bureau of Labor Statistics.

    August’s job report also included a downward revision to June, which showed the US economy lost 13,000 jobs that month. It’s the first negative employment month since December 2020, and it brings to an end what was the second-longest period of employment expansion on record.

    “The Great American jobs machine has stalled,” Christopher Rupkey, chief economist at FwdBonds, wrote in commentary issued Friday.

    July’s job gains were revised up slightly to 79,000 from 73,000, according to the report.

    Economists were expecting that the economy added 76,500 jobs last month and that the unemployment rate rose to 4.3%, according to FactSet.

    The Dow rose 119 points, or 0.26%, Friday morning. The S&P 500 rose 0.41% and the tech-heavy Nasdaq gained 0.63%, after the weaker-than-expected jobs data boosted expectations that the Federal Reserve will cut interest rates in September to stimulate the economy.

    Uncertainty stymies hiring

    Through August, monthly job gains average 74,750, BLS data shows. Excluding the pandemic, that’s the slowest average monthly gain for that January to August time frame since 2010, when the United States was still licking its wounds from the Great Recession.

    “The addition of just 22,000 jobs in August, along with net downward revisions of previous months, shows an economy straining under the immense economic uncertainty and significant policy changes of 2025,” Laura Ullrich, Indeed’s director of economic research for North America, wrote Friday.

    Uncertainty has swelled since the beginning of the year in large part around how President Donald Trump’s sweeping policies on tariffs, immigration and federal spending would shake out through the economy.

    Hiring efforts, already stymied in part by still-high interest rates, have been largely shelved due to the unknowns.

    “They don’t know where things are going, whether it’s through tariffs or other dynamics – interest rates still aren’t coming down – so I think a lot of companies are just saying, ‘not now,’” Ron Hetrick, senior labor economist at employment analytics company Lightcast, told CNN in an interview. “I think there’s somebody probably out there who’d like to hire, but not in this environment.”

    “They’re waiting for more certainty to occur,” he said.

    Narrow job growth means fewer opportunities

    The low-hire, low-fire environment is leaving workers and job hunters with few opportunities.

    And more workers are seeking those opportunities, as labor market re-entrants helped to lift the unemployment rate last month.

    The labor force, which shrank for three months in a row, increased by 436,000 people in August, according to BLS data. The labor force participation rate moved higher as well, ticking up to 62.3% from 62.2%.

    While the majority of those labor force gains were from those classified as employed, the increase in those unemployed was largely attributed to those who re-entered the labor market and are searching for jobs.

    “In fact, the median time looking for work slipped to a three-month low, a bright spot in a generally weak jobs report,” Jennifer Timmerman, senior investment strategy analyst at Wells Fargo Investment Institute, wrote in a note to investors Friday.

    A low-churn labor market puts the US labor market — and the broader economy — at greater risk, economists warn.

    The limited job gains also are coming from practically a single source, exacerbating those concerns.

    The US job market is being propped up primarily by ongoing employment gains in the health care industry. That sector, which has attributed for the lion’s share of overall job growth this year, added 46,800 jobs in August.

    That sector, however, accounts for just 15% of total employment, meaning many people are left on the sidelines.

    “For 85% of workers, they’re not seeing a lot of the jobs added,” Kory Kantenga, LinkedIn’s head of economics Americas, told CNN this week.

    And wage gains are increasingly growing softer. The annual growth rate of average hourly earnings slowed to 3.7% in August, from 3.9% in July.

    Without broader-based employment growth, the labor market is more vulnerable to shocks, he said.

    “If anything happens to that industry, you could easily see job growth fall off a cliff.”

    Warning signs have been flashing for months that the job market has been losing steam. That became starkly clearer in July, when weak job growth and larger-than-typical downward revisions spurred the unprecedented firing of BLS Commissioner Erika McEntarfer by President Donald Trump who claimed, without evidence, that the disappointing data must have been “rigged.”

    Other labor market data released so far this week further confirmed that the labor market has cooled down considerably: Private-sector hiring slowed sharply; initial jobless claims hit a nearly three-month high; layoff announcements picked up; and, for the first time in four years, the number of available jobs was lower than the number of job seekers.

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  • European Stocks Futures Gain Before US Jobs Data: Markets Wrap

    European Stocks Futures Gain Before US Jobs Data: Markets Wrap

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    (Bloomberg) — European and US stock futures gained in line with Asian equities ahead of US jobs data that will identify the path ahead for interest rates. An oil price rally eased after Middle East tensions led to the biggest one-day jump in almost a year.

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    Euro Stoxx 50 futures rose 0.2%, and contracts on the S&P 500 advanced 0.1%. Equities in Japan and South Korea rose while markets in mainland China were shut for a holiday. A gauge of Chinese shares in Hong Kong advanced as traders assessed its recent rally’s sustainability and await details of fiscal stimulus and holiday spending.

    An index of dollar declined marginally, but is still poised for the biggest weekly gain in nearly six months as traders pared back expectations for aggressive US rate cuts. Treasuries were flat after selling off on Thursday, increasing yields to levels not seen since September.

    West Texas Intermediate and Brent crude eased slightly after each rose more than 5% to a one-month high on Thursday. Earlier gains came after puzzling comments from President Joe Biden, who told reporters the US was discussing whether to support potential Israeli strikes against Iranian oil facilities.

    Investors are concerned that, should Israel strike critical Iranian assets, the Islamic Republic will lash out and escalate the conflict, dragging in more countries and potentially disrupting global energy shipments. Israel said it bombed more than a dozen Hezbollah targets in Beirut on Thursday.

    “The market fear is that there could be supply disruptions coming out of Iran,” said Tai Hui, chief Asia market strategist for JPMorgan Asset Management, on Bloomberg Television. “Demand for oil should remain healthy, but at the same time the risk to the supply side is very much there.”

    The initial buying frenzy in Chinese stocks after Beijing’s stimulus is waning as traders take profit and await policy details and holiday spending data for further confidence. Invesco Ltd.’s chief investment officer for Hong Kong and China, Raymond Ma, who predicted double-digit returns in Chinese equities this year, said there are signs the surge has gone too far for some stocks. Still, strategists at HSBC Holdings Plc and BlackRock Inc. are among Wall Street heavyweights turning bullish on the once beaten-down market.

    The yen strengthened 0.6% against the dollar, paring some of its recent losses from earlier this week after Japanese Prime Minister Shigeru Ishiba had said the nation isn’t ready for another interest-rate increase.

    Amid all the geopolitical uncertainty, investors are looking for further signals on the health of the US economy, with the monthly payrolls report due on Friday. The unemployment rate is forecast to hold steady at 4.2% in September while payrolls are expected to rise by 150,000.

    “If the unemployment rate ticks up, I wouldn’t be surprised that markets would shift back toward expecting 50 basis points and then it is a question of how the Fed may react,” Kallum Pickering, chief economist at Peel Hunt, said on Bloomberg Television.

    Other economic signs showed robustness in the US economy. The Institute for Supply Management’s index of services posted its best reading since February 2023, ahead of Wall Street estimates. Applications for US unemployment benefits rose slightly last week to a level that is consistent with a limited number of layoffs. Continuing claims, a proxy for the number of people receiving benefits, were little changed from the previous week.

    “The US dollar could stay supported on safe haven demand amid Middle East risks, and more so if US payrolls surprise on the upside,” Wei Liang Chang, a foreign-exchange and credit strategist at DBS Bank Ltd., wrote in a research note. “The yen may be a beneficiary too, as geopolitical risks restrain appetite for carry trades”

    Key events this week:

    Some of the main moves in markets:

    Stocks

    • S&P 500 futures were little changed as of 6:34 a.m. London time

    • Nikkei 225 futures (OSE) were little changed

    • Japan’s Topix rose 0.3%

    • Australia’s S&P/ASX 200 fell 0.7%

    • Hong Kong’s Hang Seng rose 2.2%

    • Euro Stoxx 50 futures rose 0.2%

    • Nasdaq 100 futures rose 0.1%

    Currencies

    • The Bloomberg Dollar Spot Index was little changed

    • The euro was little changed at $1.1030

    • The Japanese yen rose 0.6% to 146.11 per dollar

    • The offshore yuan fell 0.2% to 7.0571 per dollar

    • The Australian dollar was little changed at $0.6846

    • The British pound was little changed at $1.3134

    Cryptocurrencies

    • Bitcoin rose 0.6% to $61,156.99

    • Ether rose 1.5% to $2,376.85

    Bonds

    Commodities

    • West Texas Intermediate crude fell 0.1% to $73.62 a barrel

    • Spot gold rose 0.4% to $2,666.99 an ounce

    This story was produced with the assistance of Bloomberg Automation.

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    ©2024 Bloomberg L.P.

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  • Asian Stocks Eye Losses as US Economy Fears Deepen: Markets Wrap

    Asian Stocks Eye Losses as US Economy Fears Deepen: Markets Wrap

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    (Bloomberg) — Asian markets are poised for losses on Monday as fears of a deeper US economic slowdown roil traders around the globe worried that the Federal Reserve may be behind the curve on rate cuts. Oil climbed on rising tensions in the Middle East.

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    US futures dropped in early trading, amid the fallout from heavy losses on Wall Street on Friday and Berkshire Hathaway Inc.’s weekend disclosure that it slashed its stake in Apple Inc. by almost half during the second quarter. Contracts indicate that Australian, Japanese and Hong Kong shares are set to drop on Monday.

    Berkshire’s selling is “going to be immediately seen as a negative,” said Mark Lehmann, chief executive officer at Citizens JMP Securities. “Apple is the number one player in the global consumer space and that’s the statement about the global consumer.”

    Oil rose in early Monday trading after Saudi Arabia lifted the price of crude it sells to Asia and amid reports Iran may strike Israel to avenge assassinations of Hezbollah and Hamas officials. Saudi Arabian and Israeli stocks slumped more than 2% on Sunday, outpacing Friday’s losses on Wall Street.

    Japanese shares have plunged in the last two sessions on expectations for more domestic interest rate hikes. The broader Topix index sank more than 6% on Friday, marking its worst day since 2016. The yen has continued its gains, hitting 145.78 against the dollar on Monday, its strongest since January.

    Data on Friday showed that US nonfarm payrolls rose by 114,000 in July — one of the weakest prints since the pandemic — and job growth was revised lower in the prior two months. The jobless rate unexpectedly climbed for a fourth month to 4.3%, above the Federal Reserve’s year-end forecast, triggering a closely watched recession indicator.

    The S&P 500 saw its worst reaction to jobs data in almost two years, dropping 1.8%. Intel Corp. plunged 26% on a grim growth forecast, adding to a string of poor tech earnings that have sent the Nasdaq 100 down over 10% from its peak to enter a correction.

    A worsening conflict in the Middle East risks adding more tumult to markets as investors brace for a turbulent second half of the year. A gauge of bond market volatility has climbed, while the VIX Index – Wall Street’s fear gauge – jumped to the highest in almost 18 months after a weak US jobs report ratcheted fears of a recession, as focus increases on an already chaotic US election race.

    “In the next few months global and Australian shares look vulnerable to further falls, suggesting that it’s too early to buy the dip,” said Shane Oliver, chief economist and head of investment strategy at AMP Ltd. in Sydney. “A correction is underway.”

    Meantime, US Treasuries climbed Friday, with policy sensitive two-year yields falling to the lowest since May 2023 as worries mount the Fed’s decision to hold rates at a two-decade high is risking a deeper economic slowdown. Traders are projecting the Fed will cut rates by more than a full percentage point in 2024, with an increased chance of an outsized 50-basis point cut in September, according to data compiled by Bloomberg.

    “With the unemployment rate above and core PCE inflation now below the Fed’s year-end forecasts, we believe that the balance of risks favors more aggressive action by the Fed,” said Brian Rose, a senior US economist at UBS Group AG’s wealth management unit. “We are changing our base case to rate cuts of 50 basis points in September and 25 basis points each in November and December” after previously just seeing half that amount by year-end, he wrote in a note to clients.

    In Asia, traders will soon focus on the private Caixin China services and composite activity data for a further gauge on the health of the world’s second largest economy after manufacturing PMI contracted unexpectedly for the first time in nine months. The data comes as Chinese officials made clear in July that there would be limited aid to spur domestic consumption.

    Elsewhere this week, inflation data in Thailand and Chile are due while Mexico and Peru will hold policy decisions as debate rages on the outlook for emerging market dollar and local currency bonds. The Reserve Bank of Australia’s policy meeting will be parsed to confirm bets of easing by year-end, while US economic activity and credit data and speeches from regional Fed bank presidents will be closely watched.

    “Better data this week could provide some confidence to a bond market that is grossly overbought and offer reassurances to equity and credit,” Chris Weston, head of research at Pepperstone Group wrote in a note to clients.

    “Conversely, if the data continues to weaken and central banks don’t meet the market pricing in their narrative, one thing seems clear: buying the dip in risk may not be as effective this time around, while short sellers will have a far more prosperous hunting ground,” he said.

    Key events this week:

    • Bank of Japan issues minutes of June meeting, Monday

    • China Caixin services PMI, Monday

    • Indonesia GDP, Monday

    • Singapore retail sales, Monday

    • Thailand CPI, Monday

    • Eurozone PPI, HCOB Services PMI, Monday

    • US ISM Services index, Monday

    • Chicago Fed President Austan Goolsbee speaks, Monday

    • San Francisco Fed President Mary Daly speaks, Monday

    • Australia rate decision, Tuesday

    • Japan cash earnings, Tuesday

    • Philippines CPI, trade, Tuesday

    • Eurozone retail sales, Tuesday

    • US trade, Tuesday

    • New Zealand unemployment, Wednesday

    • China trade, Wednesday

    • Chile copper exports, trade, Wednesday

    • US consumer credit, Wednesday

    • ECB Supervisory Board member Elizabeth McCaul speaks, Wednesday

    • RBA Governor Michele Bullock speaks, Thursday

    • Philippines GDP, Thursday

    • India rate decision, Thursday

    • US initial jobless claims, Thursday

    • Richmond Fed President Thomas Barkin speaks, Thursday

    • Chile CPI, Thursday

    • Colombia CPI, Thursday

    • Mexico CPI, rate decision Thursday

    • Peru rate decision, Thursday

    • China PPI, CPI, Friday

    • Germany CPI, Friday

    • Canada unemployment, Friday

    • Brazil CPI, Friday

    Some of the main moves in markets:

    Stocks

    • S&P 500 futures fell 1% as of 8:45 a.m. Tokyo time

    • Hang Seng futures fell 0.4%

    • S&P/ASX 200 futures fell 1.5%

    • Nikkei 225 futures fell 3.1%

    Currencies

    • The Bloomberg Dollar Spot Index was little changed

    • The euro was little changed at $1.0906

    • The Japanese yen rose 0.5% to 145.78 per dollar

    • The offshore yuan rose 0.2% to 7.1494 per dollar

    • The Australian dollar fell 0.1% to $0.6502

    Cryptocurrencies

    • Bitcoin fell 1.4% to $58,304.18

    • Ether fell 1.8% to $2,700.26

    Commodities

    Bonds

    This story was produced with the assistance of Bloomberg Automation.

    –With assistance from Richard Henderson.

    Most Read from Bloomberg Businessweek

    ©2024 Bloomberg L.P.

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  • Investors brace for the Fed to dial back its 2024 rate cut predictions

    Investors brace for the Fed to dial back its 2024 rate cut predictions

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    Investors are on edge this week as Federal Reserve officials prepare to signal how many interest rate cuts are still likely in 2024.

    Most market watchers believe policymakers will dial their expectations back. The question is by how much.

    The new projection on Wednesday will come in the form of a so-called “dot plot,” a chart updated quarterly that shows the prediction of each Fed official about the direction of the federal funds rate.

    In March, the dot plot revealed a consensus among Fed officials for three cuts. Now that projection is in question following a string of sticky inflation readings, cautious commentary from Fed officials and a US labor market that added more jobs than expected in May.

    Most investors now expect little more than just one cut for 2024.

    “I think the policy path will change a bit,” said former Kansas City Fed president Esther George, who predicts the median among 19 policymakers could drop to one cut even as a healthy number of officials still argue for two.

    “My expectation is the dots will show and confirm what I think the market has picked up, and that is fewer rate cuts with the inflation forecast holding.”

    FILE PHOTO: U.S. Federal Reserve Chair Jerome Powell responds to a question from David Rubenstein (not pictured) during an on-stage discussion at a meeting of the Economic Club of Washington, at the Renaissance Hotel in Washington, D.C., U.S, February 7, 2023. REUTERS/Amanda Andrade-Rhoades/File Photo

    Federal Reserve Chair Jerome Powell. REUTERS/Amanda Andrade-Rhoades (REUTERS / Reuters)

    Fed Chair Jay Powell and his colleagues on the Federal Open Market Committee have been emphasizing they want to be sure inflation is moving “sustainably” down to their 2% target before starting cuts, and that in the interim they expect to hold rates higher for longer.

    That stance isn’t expected to change this week. Officials are widely expected to hold the Fed’s benchmark rate steady on Wednesday, leaving it at a 23-year high.

    Policymakers are expected to stay cautious because the latest readings on inflation and the economy offer a mixed picture.

    The labor market added 272,000 nonfarm payroll jobs in May, significantly more additions than the 180,000 expected by economists, but the unemployment rate rose to 4% from 3.9%.

    Prices aren’t accelerating as much as they were during the first quarter, but recent readings also don’t show enough progress for the Fed to start cutting.

    The year-over-year increase in the Fed’s preferred inflation gauge — the “core” Personal Consumption Expenditures index — was 2.8% in April, unchanged from March.

    Another complication is that wages are showing resilience, as well. Wage growth was stronger than expected in May, clocking in at 4.1%.

    Fed officials will get a fresh reading from another inflation gauge, the Consumer Price Index (CPI), just hours before concluding their policy meeting this Wednesday. It is expected to show continued moderation during May after an encouraging April.

    The year-over-year change in so-called “core” CPI — which excludes volatile food and energy prices the Fed can’t control — is expected to edge down a tenth of a percent to 3.5%, compared with 3.6% in April and 3.8% in March.

    A 3.5% print on CPI may not be enough to inspire confidence at the Fed, according to George.

    “I think it’s just going to take them quite a bit longer to figure out what the trend is,” George said.

    Powell has made clear that he thinks the Fed will need more than a quarter’s worth of data to make a judgment on whether inflation is steadily falling toward the central bank’s goal of 2%.

    The September meeting is viewed by many as an optimistic case for cutting rates since the three inflation reports due out between now and then would all need to show improvement for the central bank to pull the trigger.

    In the meantime, investors expectations for the number of rate cuts this year have swung wildly.

    Odds for a first cut in September fell to roughly 52% following the hotter-than-expected jobs report released Friday, and wagers for a second rate cut dwindled to little more than a 38% chance in December.

    NEW YORK, NEW YORK - AUGUST 25: Federal Reserve Chairman Jerome Powell’s speech is seen on a television screen as traders work on the New York Stock Exchange floor during morning trading on August 25, 2023 in New York City. Stocks opened higher as Wall Street prepared for Federal Reserve Chairman Powell’s speech at the Jackson Hole Economic Symposium.  (Photo by Michael M. Santiago/Getty Images)NEW YORK, NEW YORK - AUGUST 25: Federal Reserve Chairman Jerome Powell’s speech is seen on a television screen as traders work on the New York Stock Exchange floor during morning trading on August 25, 2023 in New York City. Stocks opened higher as Wall Street prepared for Federal Reserve Chairman Powell’s speech at the Jackson Hole Economic Symposium.  (Photo by Michael M. Santiago/Getty Images)

    Traders will be listening for any clues on the Fed’s interest rate path this Wednesday as Fed chair Jay Powell speaks. (Photo by Michael M. Santiago/Getty Images) (Michael M. Santiago via Getty Images)

    Luke Tilley, chief economist for Wilmington Trust, is more optimistic. He expects the central bank will have enough data to change its tune by its policy meeting on July 31.

    The inflation data in the first month of the second quarter has helped calm fears about hotter readings in the first quarter, he said, and the CPI data out Wednesday will offer further reassurance.

    “By the time July 31st comes around, they’ll have three more months of inflation data,” Tilley said. “I think they’ll be back on the front of their feet and off their heels and ready to cut. But it really comes down to how that data comes out.”

    Wednesday will also bring other new Fed projections for investors to digest this week, as policymakers will also offer fresh forecasts for inflation, the economy and unemployment.

    And there will be the usual high level of scrutiny on whatever Powell has to say at his regular press conference following the meeting.

    Wilmer Stith, bond portfolio manager for Wilmington Trust, is looking to see whether Powell takes a more hawkish tone.

    “Is he going to be like a [Minneapolis Fed President Neel] Kashkari and other members who say we need to be higher for longer?” says Stith.

    “It’s hard to say because if we continue to get the economic growth and the labor market strength that we’ve seen, I don’t even know why they’d want to do one cut.”

    Stith said he thinks officials will pencil in two rate cuts. If the Fed only marks down just one, that could add some volatility to markets, he added, even though that is currently what investors expect.

    There is a risk the Fed could become too patient in its quest to be sure inflation is dropping, George said. Holding rates this high for too long could also sow the seeds of a recession.

    “That’s the risk they’re running here, is to say ‘time is on our side,’” she said.

    Click here for in-depth analysis of the latest stock market news and events moving stock prices.

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  • Long Island unemployment rate moves higher | Long Island Business News

    Long Island unemployment rate moves higher | Long Island Business News

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    The not-seasonally-adjusted unemployment rate for Long Island in December was 3.6 percent.

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    David Winzelberg

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  • US consumer prices unexpectedly rise in November

    US consumer prices unexpectedly rise in November

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    WASHINGTON (Reuters) – U.S. consumer prices unexpectedly rose in November while underlying inflation pushed higher, offering more evidence that the Federal Reserve was unlikely to pivot to interest rate cuts early next year.

    The consumer price index edged up 0.1% last month after being unchanged in October, the Labor Department’s Bureau of Labor Statistics said on Tuesday. In the 12 months through November, the CPI increased 3.1% after rising 3.2% in October.

    Economists polled by Reuters had forecast the CPI would be unchanged on the month and gain 3.1% on a year-on-year basis. The annual increase in consumer prices has slowed from a peak of 9.1% in June 2022. Inflation remains above the Fed’s 2% target.

    The report followed data last Friday showing job gains accelerated in November and the unemployment rate fell to 3.7% from nearly a two-year high of 3.9% in October. The strong employment report prompted financial markets to push back expectations of an interest rate cut to May from March, according to CME Group’s FedWatch Tool.

    Officials from the U.S. central bank were due to gather for a two-day policy meeting on Tuesday. The Fed is expected to leave rates unchanged on Wednesday, with economists confident that its policy tightening campaign is over.

    “(Fed Chair Jerome) Powell will likely continue to guide that rate cuts are not yet being considered but will not substantially push back on market pricing,” said Veronica Clark, an economist at Citigroup in New York.

    The Fed has raised its policy rate by 525 basis points to the current 5.25%-5.50% range since March 2022.

    Excluding the volatile food and energy components, the CPI increased 0.3% in November after climbing 0.2% in the prior month. The so-called core CPI was lifted by a rebound in prices of used cars and trucks.

    High rents continued to keep underlying inflation elevated. Rental inflation could moderate considerably next year as the rental vacancy rate increased to more than a two-year high in the third quarter, and there is a large stock of apartment buildings in the pipeline.

    The core CPI increased 4.0% on a year-on-year basis in November after advancing by the same margin in October.

    (Reporting by Lucia Mutikani; Editing by Paul Simao and Chizu Nomiyama)

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  • What the DeSantis and Newsom Debate Really Revealed

    What the DeSantis and Newsom Debate Really Revealed

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    The best way to understand last week’s unusual debate between Governors Gavin Newsom of California and Ron DeSantis of Florida is to think of them less as representatives of different political parties than as ambassadors from different countries.

    Thursday night’s debate on Fox News probably won’t much change the arc of either man’s career. DeSantis is still losing altitude in the 2024 GOP presidential race, and Newsom still faces years of auditioning before Democratic leaders and voters for a possible 2028 presidential-nomination run.

    What the debate did reveal was how wide a chasm has opened between red and blue states. The governors spent the session wrangling over the relative merits of two utterly divergent models for organizing government and society. It was something like watching an argument over whether the liberal government in France or the conservative government in England produces better outcomes for its people.

    “The way the debate will be heard is the nationals of each country cheering their guy on,” Michael Podhorzer, a progressive political strategist and a former political director for the AFL-CIO, told me.

    The sharp disagreements between the governors pointed toward a future of widening separation between red and blue blocs whose differences are growing so profound that Podhorzer has argued the sections should be understood as fundamentally different nations.

    As Podhorzer and other analysts have noted, this accelerating separation marks a fundamental reversal from the generally centralizing trends in American life through the late 20th century. Beginning with the New Deal investments under Franklin D. Roosevelt (such as agricultural price supports, the Tennessee Valley Authority, and Social Security), and continuing with massive expenditures on defense, infrastructure, and the social safety net after World War II (including Medicare, Medicaid, and federal aid for K–12 and higher education), federal spending for decades tended to narrow the income gaps between the southern states at the core of red America and the rest of the country.

    After World War II, in a dynamic that legal scholars call the rights revolution, the federal government nationalized more civil rights and liberties and limited the ability of states to constrain those rights. Through Supreme Court and congressional actions that unfolded over more than half a century, Washington struck down state-sponsored segregation and racial barriers to voting across the South, and invalidated a procession of state restrictions on abortion, contraception, interracial marriage, and same-sex relationships, among other things.

    But both big unifying trends reshaping the economy and the rules of social life have stalled and are moving in the opposite direction. Podhorzer has calculated that the convergence in per capita income between the South and other regions plateaued in 1980 and then started widening again around 2008. And, as I’ve written, the axis of Republican-controlled state governments, the GOP-appointed majority on the Supreme Court, and Republican senators wielding the filibuster are actively reversing the rights revolution that raised the floor of personal freedoms guaranteed in all 50 states.

    On issues including voting, LGBTQ rights, classroom censorship, book bans, public protest, and, most prominent, access to abortion, red states are imposing restrictions that are universally rejected in blue states. As Newsom argued in an interview with me a few hours before he went onstage, “This assault on our rights and the weaponization of grievance” is designed to “bring us back to … the pre-1960s world” in which people’s rights depended on their zip code. Under DeSantis, Florida has been a leader in that process, creating policies, such as limits on classroom discussion of sexual orientation and gender identity, widely emulated across other red states.

    Thursday night’s debate revolved around the differences between Florida and California, though the Fox moderator Sean Hannity hardly presented an accurate picture of the comparison. Both states have their successes and failures. But Hannity focused his questions entirely on measures that favor Florida (such as unemployment rate, violent-crime rate, and homelessness numbers) while ignoring all the contrasts that favor California (which has a much higher median income, far fewer residents without health insurance, and, according to the CDC, much lower rates of teen birth, infant mortality, and death from firearms, as well as a longer life expectancy). Hannity essentially joined in a tag team with DeSantis to frame the debate in terms familiar to his Fox audience that blue states are a chaotic hellhole of crime and “woke” liberalism; when Newsom pushed back against that characterization, or challenged DeSantis’s approach, Hannity often cut him off or steered the conversation in a different direction.

    The narrow focus on California and Florida made sense in a debate between their two governors. But those comparisons can obscure the bigger story, which is the expanding divergence between all the states in the red and blue sections.

    Podhorzer has documented that gap in an array of revealing measures. He divides the nation between states in which Republicans or Democrats usually hold unified control of the governorship and state legislature, and those in which control of state government is usually divided or frequently changes hands. That classification system yields 27 red states, 17 blue states (plus the District of Columbia), and six purple states. By these definitions, the red states account for just under half the population and the blue states just below two-fifths, while the blue states contribute slightly more of the nation’s GDP.

    Podhorzer’s data show that on many key measures, blue states as a group are producing far better outcomes than the red states.

    In new results provided exclusively to The Atlantic, Podhorzer calculates that the economic output per capita and the median family income are both now 27 percent higher in the blue section than in the red, while the share of children in poverty is 27 percent higher in the red states. The share of people without health insurance is more than 80 percent higher in the red states than in the blue, as are the rates of teen pregnancy and maternal death in childbirth. The homicide rate across the red states is more than one-third higher than in the blue, and the rate of death from firearms is nearly double in the red. Average life expectancy at birth is now about two and a half years higher in the blue states. On most of these measures, the purple states fall between red and blue.

    (Podhorzer also groups the states by their voting behavior in federal elections, which results in 24 red-leaning states, 18 blue ones, and eight purple states. But the comparisons between the two big sections don’t change much under that definition.)

    On most of these measures, Podhorzer calculates, the gap between the red and blue states has widened over the past 15 years. He attributes the expansion mostly to the kind of policy differences that DeSantis and Newsom debated. The difference in health outcomes, for instance, is rooted in disparities such as the continuing refusal of 10 red states, including Florida, to expand Medicaid eligibility under the Affordable Care Act (which every blue state has done). As other economic analysts have noted, with their higher concentrations of college graduates, blue states—and the large blue metropolitan areas of red states—are benefiting the most from the nation’s transition into an information-age economy.

    As DeSantis and Hannity did in the debate, defenders of the red-state approach point to other measures. Housing costs are typically much lower in red states than in blue, as are taxes. Those are probably the central reasons many of the blue states, despite their stronger results on many important yardsticks, are stagnant or shrinking in population, while several of the red states, especially those across the Sun Belt, have been adding middle-income families. Lower housing costs are also one reason homelessness is less of a problem in red states than in blue metros, especially along the West Coast.

    But the relative superiority of either model is probably less important to the nation’s future than the widening separation, and growing antagonism, between them that was displayed so vividly in the debate.

    Most experts I spoke with agree that there is now no single difference between the red and blue sections as great as the gulf during most of the 20th century between the states with and without Jim Crow racial segregation, much less the 19th-century distance between the slave and free states.

    But the number of issues dividing the states is reaching a historic peak, many of those same experts agree. Although civil rights and racial equity have made up the most important dividing line between the states for most of U.S. history, “the way in which these issues line up today—on everything from abortion to library books to the question of how much power states ought to have over their local governments … I think there’s not been since the founding such a far-reaching debate,” Donald Kettl, a former dean of the University of Maryland’s School of Public Policy, told me.

    To Kettl, the new wave of restrictive social legislation spreading across red states challenges the traditional idea that local variation benefits the country by allowing states to function as the fabled “laboratories of democracy.” “It strikes me as being incredibly dangerous,” Kettl said. “The good old arguments about the laboratories of democracy is that individual states would try different ideas, find out what works, and throw out the ones that didn’t work. We are not talking about that at all. We are talking about an effort to push a particular agenda and to push it as far as possible.”

    David Cole, the ACLU’s national legal director, likewise sees the erosion of a national floor of civil rights and liberties as the most ominous element of the widening red-blue separation. “We are supposed to be one nation, committed to a common set of fundamental rights,” Cole told me in an email. “But we have increasingly become two nations, with substantial rights protections for some, and robust repression for others. Federalism was designed to allow for some play in the joints, some variations among states—but not on the fundamental constitutional rights to which we are all entitled as human beings and U.S. residents.”

    It’s not clear that in the near term anything will close the space between red and blue states. Neither party has many realistic chances to win power in states that now prefer the other side. And particularly in red states, the dominance of the conservative media ecosystem makes it difficult for Democrats even to present their arguments, as the debate demonstrated.

    In the interview a few hours before he went onstage, Newsom told me that the principal reason he accepted the debate was not so much to rebut DeSantis as to reach Fox viewers. “I want to make the case in their filter bubble,” he told me. “We’ve got to get into their platforms.” Though the forum allowed Newsom to assert some positive facts about President Joe Biden’s record rarely heard on the network, any progress in reaching Fox viewers was likely blunted by Hannity’s framing of every issue as proof of the superiority of red over blue. After the debate, Newsom’s aides said they believed he had achieved his mission of evangelizing to Fox’s audience. But in the end, the evening may have validated Barack Obama’s lament during his presidency that it was virtually impossible for Democrats to communicate with red-state voters except through the negative filter that conservative media build around them.

    Podhorzer is among those skeptical that anything will reverse this process of separation in the foreseeable future. He views the late-20th-century trend toward convergence as the anomaly; “the default position” through most of American history has been for the states we now consider the red bloc to pursue very different visions of moral order, economic progress, and the role of government than those we now label as blue. To Podhorzer, the disagreements on display at the DeSantis-Newsom debate were just the modern manifestation of the deep divisions between the free and slave states, or the Union and the Confederacy.

    In the 2024 presidential race, Biden and the leading Republican candidates have each endorsed new national laws that would reverse our separation by imposing the dominant laws in one section on the other. Biden and other Democrats are backing federal bills to restore a national floor of abortion, LGBTQ, and voting rights in every state; Republicans in turn want to impose red-state restrictions on all those issues in blue states.

    Podhorzer believes that the differences between the states have hardened to the point where setting common national rules on these issues in either direction has become extremely risky. “Any compromise on any of these big issues,” he told me, “means half the country will see a loss in some aspect of what they like about the way they live.” From his perspective, courting that backlash might be worth the effort to restore core civil rights, such as access to abortion, nationally. But he warns that no one should underestimate the potential for fierce red-state resistance to such an effort, extending even to violence.

    It won’t be easy for either side to pass legislation nationalizing the social- and civil-liberties regime in their section; at the least, it would require them to not only hold unified control of the White House and Congress but also end the Senate filibuster, which remains an uncertain proposition. The more likely trajectory is for red and blue states to continue careening away from each other along the pathways that Newsom and DeSantis so passionately defended last week. “Without some major disruption, this cycle” of separation “hasn’t played itself out fully,” Podhorzer told me, in a view echoed by the other experts I spoke with. “There are hurricane-force winds in that direction.” Thursday’s gusty debate between these two ambitious governors only hinted at how hard those gales may blow in the years ahead.

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    Ronald Brownstein

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  • Is Biden Toast?

    Is Biden Toast?

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    It’s a year before the presidential election, and Democrats are panicking. Their incumbent is unpopular, and voters are refusing to give him credit for overseeing an economic rebound. Polls show him losing to a Republican challenger.

    What’s true now was also true 12 years ago. Today, Democrats are alarmed by recent surveys finding that President Joe Biden trails Donald Trump in five key swing states. But they were just as scared in the fall of 2011, when President Barack Obama’s approval rating languished in the low 40s and a pair of national polls showed him losing to Mitt Romney, the former Massachusetts governor who would become the GOP nominee. Barely one-third of independent voters said Obama deserved a second term. A New York Times Magazine cover story asked the question on many Democrats’ minds: “Is Obama Toast?”

    A year later, Obama beat Romney handily, by a margin of 126 in the Electoral College and 5 million in the popular vote. Those results are comforting to Democrats who want to believe that Biden is no worse off than Obama was at this point in his presidency. “This is exactly where we were with Obama,” Jim Messina, the former president’s 2012 campaign manager, told me by phone this week. For good measure, he looked up data from earlier elections and found that George W. Bush and Bill Clinton each trailed in the polls a year out from their reelection victories. Perhaps, Messina hoped, that would “calm my bed-wetting fucking Democratic friends down.”

    Yet the comparison between Biden today and Obama in 2011 goes only so far. The most obvious difference is that Biden, who turns 81 this month, is nearly three decades older than Obama was at the time of his second presidential campaign. (He’s also much older than Clinton and Bush were during their reelection bids.) Voters across party lines cite Biden’s age as a top concern, and a majority of Democrats have told pollsters for the past two years that he shouldn’t run again. Obama was in the prime of his political career, an electrifying orator who could reenergize the Democratic base with a few well-timed speeches. Not even Biden’s biggest defenders would claim that he has the same ability. Put simply, he looks and sounds his age.

    In a recent national CNN poll that showed Trump with a four-percentage-point lead over Biden, just a quarter of respondents said the president had “the stamina and sharpness to serve”; more than half said the 77-year-old Trump did. Privately, Democratic lawmakers and aides have fretted that the White House has kept the president too caged in for fear of a verbal or physical stumble. At the same time, they worry that a diminished Biden is unable to deliver a winning economic message to voters.

    “The greatest concern is that his biggest liability is the one thing he can’t change,” David Axelrod, Obama’s longtime chief strategist, wrote on X (formerly Twitter) on the day that The New York Times and Siena College released polls showing Trump ahead of Biden by as much as 10 points in battleground states. “The age arrow only points in one direction.” Axelrod’s acknowledgment of a reality that many senior Democrats are hesitant to admit publicly, and his gentle suggestion that Biden at least consider the wisdom of running again, renewed concerns that the president and his party are ignoring a consistent message from their voters: Nominate someone else.

    Tuesday’s election results, in which Democratic candidates and causes notched wins in Virginia, Kentucky, and Ohio, helped allay those concerns—at least for some in the party. “It’s way too early to either pop the champagne or hang the funeral crepe,” Steve Israel, the former New York representative who chaired the Democrats’ House campaign arm during Obama’s presidency, told me on Wednesday. “Biden has the advantage of time, money, a bully pulpit, and, based on last night’s results, the fact that voters in battleground areas seem to agree with Democrats on key issues like abortion.”

    The Biden campaign embraced the victories as the continuation of a trend in which Democrats have performed better in recent elections than the president’s polling would suggest. “Time and again, Joe Biden beats expectations,” the campaign spokesperson Michael Tyler told reporters Thursday morning. “The bottom line is that polls a year out don’t matter. Results do.”

    The Democrats’ strength in off-year elections, however, may not contradict Biden’s lackluster standing in a hypothetical matchup against Trump. The political realignment since Obama’s presidency—in which college-educated suburban voters have drifted left while working-class voters have joined Trump’s GOP—has given Democrats the upper hand in lower-turnout elections. The traditionally left-leaning constituencies that have soured on Biden, including younger and nonwhite voters, tend to show up only for presidential votes.

    As Messina pointed out, the overall economy is better now than it was in late 2011 under Obama, when the unemployment rate was still over 8 percent—more than double the current rate of 3.9 percent. But voters don’t seem to feel that way. Their biggest economic preoccupation is not jobs but high prices, and although the rate of inflation has come down, costs have not. Polling by the Democratic firm Blueprint found a huge disconnect between what voters believe Biden is focused on—jobs—and what they care most about: inflation. “It’s very alarming,” Evan Roth Smith, who oversaw the poll, told reporters in a presentation of the findings this week. “It tells a lot of the story about why Bidenomics is not resonating, and is not redounding to the benefit of the president.”

    Nothing stirs more frustration among Democrats, including some Biden allies, than the sense that the president is misreading the electorate and trying to sell voters on an economy that isn’t working for them. “It takes far longer to rebuild the middle class than it took to destroy the middle class,” Representative Ro Khanna of California, a former Bernie Sanders supporter who now serves on an advisory board for Biden’s reelection, told me. “No politician, president or incumbent, should be celebrating the American economy in the years to come until there is dramatic improvement in the lives of middle-class and working-class Americans.” Khanna said that Biden should be “much more aggressive” in drawing an economic contrast with Trump and attacking him in the same way that Obama attacked Romney—as a supplicant for wealthy and corporate interests who will destroy the nation’s social safety net. “Donald Trump is a much more formidable candidate than Mitt Romney,” Khanna said. “So it’s a harder challenge.”

    Just how strong a threat Trump poses to Biden is a matter of dispute among Democrats. Although all of the Democrats I spoke with predicted that next year’s election would be close, some of them took solace in Trump’s weakness as a GOP nominee—and not only because he might be running as a convicted felon. “Donald Trump, for all of his visibility, is prone to making big mistakes,” Israel said. “A Biden-versus-Trump matchup will reveal Trump’s mistakes and help correct the current polling.”

    The New York Times–Siena polls found that an unnamed “generic” Democrat would fare much better against Trump than Biden would. But they also found that a generic Republican would trounce Biden by an even larger margin. “Mitt Romney was a much harder candidate than Donald Trump,” Messina told me. (When I pointed out that Khanna had made the opposite assertion, he replied, “He’s in Congress. I’m not. I won a presidential election. He didn’t.”)

    None of the Democrats I interviewed was pining for another nominee, or for Biden to drop out. Representative Dean Phillips of Minnesota hasn’t secured a single noteworthy endorsement since announcing his long-shot primary challenge. Vice President Kamala Harris is no more popular among voters, and all of the Democrats I spoke with expressed doubts that the candidacy of a relatively untested governor—say, Gavin Newsom of California, Gretchen Whitmer of Michigan, or Josh Shapiro of Pennsylvania—would make a Democratic victory more likely. Messina said that if Biden dropped out, a flood of ambitious Democrats would immediately enter the race, and a free-for-all primary could produce an even weaker nominee. “Are we sure that’s what we want?” Messina asked.

    Others downplayed Biden’s poor polling, particularly the finding that Democrats don’t want him to run again. Their reasoning, however, hinted at a sense of resignation about the coming campaign. Israel compared the choice voters face to a person deciding whether or not to renew a lease on their car: “I’m not sure I want to extend the lease, until I looked at other models and realized I’m going to stick with what I have,” he explained. Senator Chris Murphy of Connecticut said that voters he talks to don’t bring up Biden’s age as an issue; only the media does. “I don’t know. He’s old, but he’s also really tall,” Murphy told me. “I don’t care about tall presidents if it doesn’t impact their ability to do the job. I don’t really care about presidents who are older if it doesn’t impact their ability to do the job either.” He was unequivocal: “I think we need Joe Biden as our nominee.”

    For most Democrats, the debate over whether Biden should run again is now mostly academic. The president has made his decision, and top Democrats aren’t pressuring him to change his mind. Democrats are left to hope that the comparisons to Obama bear out and the advantages of incumbency kick in. Biden’s age—he’d be 86 at the end of a second term—is a fact of life. “You have to lean into it,” Israel told me. “You can’t ignore it.” How, I asked him, should Biden lean into the age issue? “I don’t know,” Israel replied. “That’s what a campaign is for.”

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    Russell Berman

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  • Long Island unemployment rate climbs higher again | Long Island Business News

    Long Island unemployment rate climbs higher again | Long Island Business News

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    Peter Shankman to speak on public relations, AI to Long Island group

    Peter Shankman, the founder of the Help A Reporter Out platform, will present  “AI Tools for PR Pros,” on[…]

    September 14, 2023

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    David Winzelberg

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  • Long Island unemployment rate ticks upwards | Long Island Business News

    Long Island unemployment rate ticks upwards | Long Island Business News

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    The not-seasonally-adjusted unemployment rate for Long Island in July was 3 percent.

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    David Winzelberg

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  • Long Island unemployment rate climbs higher | Long Island Business News

    Long Island unemployment rate climbs higher | Long Island Business News

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    The not-seasonally-adjusted unemployment rate for Long Island in June was 2.9 percent.

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    David Winzelberg

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  • Long Island unemployment rate ticks upwards | Long Island Business News

    Long Island unemployment rate ticks upwards | Long Island Business News

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    DMV expeditor opens new office in Island Park 

    The company serves executives, fleet owners, ride-share drivers and others who would rather tend to their busi[…]

    June 20, 2023

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    David Winzelberg

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  • Long Island unemployment rate plunges to record low | Long Island Business News

    Long Island unemployment rate plunges to record low | Long Island Business News

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    The not-seasonally-adjusted unemployment rate for Long Island in April was 2.4 percent.

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    David Winzelberg

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  • Long Island unemployment rate continues to drop | Long Island Business News

    Long Island unemployment rate continues to drop | Long Island Business News

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    The not-seasonally-adjusted unemployment rate for Long Island in March was 2.9 percent.

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    David Winzelberg

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  • Long Island unemployment rate drifts lower | Long Island Business News

    Long Island unemployment rate drifts lower | Long Island Business News

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    The Long Island unemployment rate fell slightly in December, after a small tick upward in November. 

    The not-seasonally-adjusted unemployment rate for Long Island in December was 2.4 percent, down slightly from the 2.5 percent rate from November, according to preliminary numbers from the New York State Department of Labor. 

    The December rate of 2.4 percent was still lower than the 2.7 percent Long Island unemployment rate recorded in Dec. 2021. 

    The December not-seasonally-adjusted unemployment rate for Nassau County was 2.3 percent and the rate for Suffolk County was 2.6 percent, the DOL reports.  

    The state’s seasonally adjusted unemployment rate remained at 4.3 percent in December, the same as it’s been for the last three months. 

    New York City had the highest unemployment rates in the state in November, led by the Bronx (7.5 percent); Brooklyn (5.5 percent); Staten Island (5 percent) and Queens (4.9 percent). 

    Nassau joined Columbia, Rockland and Saratoga counties with the state’s lowest unemployment rate in December at 2.3 percent, followed by Putnam and Tompkins counties at 2.4 percent. 

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    David Winzelberg

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