Posts belonging to Category jobs



No-deal Brexit uncertainty forces UK producers to plan factory shutdowns

Excess stock leading to a collapse in sales for UK producers.

British companies have drawn up plans to temporarily close factories after demand for their goods nose-dived following Theresa May’s decision to delay Brexit, senior industry figures have told Business Insider.

Producers have seen production levels collapse due to what one industry chief called the “stop-start” Brexit effect.

Fears of a no-deal Brexit in March and April led many companies to build up large stockpiles of goods.

http://www.businessinsider.com

 

Huawei announces swingeing cuts to production

Sales plummet 40 per cent

Huawei has revealed revised plans for the next two years, and they’re not pretty. Company founder Ren Zhengfei has admitted that sales, since the US trade ban began, have plummeted 40 per cent outside China, leading to a revision of production targets.

The company will be slashing $30bn (£24bn) from its production budget over the next 24-months. This will mean that the company’s sales will flatline at $100bn during that time, where it had been widely expected to emerge as the biggest company in the mobile market sometime during that period. Mr Ren added that the company will have to “remain vigilant” in 2021, although sales in its home market of China remain buoyant.

http://www.theinquirer.net

UK: Remain parties beat Hard Brexiteers in European elections

Pro-Remain parties outperformed hard Brexit parties

The European election results in the UK have been hailed as a victory for political parties in favour of Remaining in the European Union, after anti-Brexit parties collectively won more votes than those parties calling for a “hard” exit.

Nigel Farage’s Brexit Party was the biggest individual winner on Sunday night, coming first place overall with 32% of the national vote and a projected victory of 29 out of the 80 seats available to the United Kingdom in the European Parliament.

However, anti-Brexit campaigners quickly pointed out that the combined vote share of the Brexit Party and fellow pro-Brexit UKIP was smaller than that of parties which explicitly campaigned to reverse Brexit.

Uber and Lyft strikes

US drivers stop taking rides in protest over pay

Rideshare drivers are striking and protesting in major cities across the United States, with many participating in a 24-hour strike of the Uber and Lyft apps that began at midnight on 8 May.

Cities affected by the stoppage – which varies in length from two-hour strikes to day-long boycotts – include Los Angeles, New York, San Francisco, San Diego, Philadelphia and others. Strikes are also expected overseas in Britain, Australia and elsewhere.

The protests come the day before Uber launches its shares in a public offering on the US stock exchange.

http://www.theguardian.com/

Low productivity jobs continue to drive employment growth

Employment is rising in OECD countries

The latest Compendium of Productivity Indicators says the trend has compounded the impact of generally weak business investment on productivity growth. The downward pressure on wages may have allowed firms to defer investment decisions, instead meeting increased demand by hiring additional staff and, in turn, undermining the potential for investment-driven productivity growth, the report says.

In France, Germany and the United Kingdom, the top three sectors with the largest employment gains between 2010 and 2017 accounted for one third of total job creation but paid below average wages. Moreover, in Belgium, Finland, Italy and Spain, industries with above average labour productivity levels saw net job losses. The data show wage growth (adjusted for inflation) improving in recent years but remaining below pre-crisis rates in two thirds of OECD countries despite a period of negligible or slow wage growth, and earlier declines in purchasing power in the aftermath of the crisis. Indeed, real wages remain below crisis levels in Greece, Italy and Spain, and have also contracted in recent years in Belgium and Canada.

More jobs in lower paid sectors such as accommodation and catering and health and residential care, weigh on average wages across the economy as a whole.

http://www.oecd.org/

US economy grows by 3.2% in the first quarter

Exports rose 3.7% in the first quarter, while imports decreased by 3.7%

The U.S. economy grew at a faster pace than expected in the first quarter and posted its best growth to start a year in four years.

First-quarter gross domestic product expanded by 3.2%, the Bureau of Economic Analysis said Friday in its initial read of the economy for that period. Economists polled by Dow Jones expected growth of 2.5%. It was the first time since 2015 that first-quarter GDP topped 3%.

http://www.cnbc.com

Amazon’s warehouse-worker tracking system can automatically fire people without a human supervisor’s involvement

Amazon has fired more than 300 workers, citing productivity, at a single facility in Baltimore in a single year 

Amazon’s demanding culture of worker productivity has been revealed in multiple investigations. But a new report indicates that the company doesn’t just track worker productivity at its warehouses — it also has a system that can automatically fire them.

Amazon has fired more than 300 workers, citing productivity, at a single facility in Baltimore in a single year (August 2017 through September 2018), The Verge’s Colin Lecher reported. The Verge cited a letter by an Amazon attorney as part of a case with the National Labor Relations Board.

An Amazon spokesperson confirmed to Business Insider, “Approximately 300 employees turned over in Baltimore related to productivity in this timeframe. In general, the number of employee terminations have decreased over the last two years at this facility as well as across North America.”

Amazon’s system tracks a metric called “time off task,” meaning how much time workers pause or take breaks, The Verge reported. It has been previously reported that some workers feel so pressured that they don’t take bathroom breaks.

http://www.businessinsider.com

Small enterprises (SMEs) are turning to non-bank financing sources

SMEs account for 60% of total value added

Small and medium-sized enterprises (SMEs) are turning to non-bank financing sources at a faster pace than in the past, as bank lending to them has risen less than expected given today’s favourable credit conditions and business environment.

‘Financing SMEs and Entrepreneurs 2019: An OECD Scoreboard‘ finds that online peer-to-peer lending and equity crowdfunding increased significantly in 2017, especially in countries with small markets. China, the United Kingdom and the United States continued to have the biggest online alternative finance markets for businesses. Venture capital investments were up in most countries, and the number of SME listings expanded by more than 13% in 2017, with total SME market capitalisation up 16.7%.

SMEs and entrepreneurs constitute the backbone of OECD economies, accounting for 60% of total employment and 50-60% of value added. They are key to strengthening productivity, delivering inclusive growth and helping economies adapt to changes like the digital transition, ageing populations and the changing future of work. This eighth annual edition of the OECD’s SME financing Scoreboard provides data on debt, equity, asset-based finance and financing conditions in 46 countries and an overview of policy measures to ease SMEs’ access to finance.

http://www.oecd.org/

What is Modern Monetary Theory (MMT) ?

Alexandria Ocasio-Cortez is a fan of this geeky economic theory called MMT

  • MMT is a big departure from conventional economic theory. It proposes governments that control their own currency can spend freely, as they can always create more money to pay off debts in their own currency.
  • The theory suggests government spending can grow the economy to its full capacity, enrich the private sector, eliminate unemployment, and finance major programs such as universal healthcare, free college tuition, and green energy.
  • If the spending generates a government deficit, this isn’t a problem either. The government’s deficit is by definition the private sector’s surplus.
  • Increased government spending will not generate inflation as long as there is unused economic capacity or unemployed labour, MMT proposes. It is only when an economy hits physical or natural constraints on its productivity — such as full employment — that inflation happens because that is when supply fails to meet demand, jacking up prices.
  • MMT proponents argue governments can control inflation by spending less or withdrawing money from the economy through taxes.

https://www.businessinsider.com/

At Davos, pessimism is dramatically rising among global CEOs

Record jump

Chief executives from the world’s leading companies have expressed a record jump in pessimism about global growth prospects, according to a PwC survey released alongside the World Economic Forum (WEF) in Davos.

The survey of 1,300 plus CEOs around the world revealed that nearly 30 percent of business leaders believe global growth will decline in the next 12 months, approximately six times the level of last year. The dramatic shift is coming off an extremely high base, however, with 2018 marking a record jump in confidence among corporate bosses.

The new risks this year are “the trade conflicts which are outside of their (CEOs) control per say, the policy issues when you think about the EU and Brexit and a combination of climate change and other aspects like that,” Bob Moritz, the global chairman of PwC, told CNBC Tuesday.

http://www.cnbc.com

The Shutdown now hurts the US Economy

A chunk of revenues that they might never recoup

None of the 21 government shutdowns since 1976 made a real dent in the economy — purchases were simply delayed until the government re-opened and federal workers regained their lost wages.
This time is already different.
Businesses are warning investors that the nearly month-long shutdown has taken a chunk out of revenues that they might never recoup, like the $25 million that Delta Airlines lost because of fewer bookings than anticipated in February.

http://www.cnn.com

Upbeat employment report in US

U.S. economic strength

U.S. employers hired the most workers in 10 months in December while boosting wages, pointing to sustained strength in the economy that could ease fears of a sharp slowdown in growth.

The upbeat employment report from the Labor Department on Friday stood in stark contrast with reports this week showing Chinese factory activity contracting for the first time in 19 months in December and weak manufacturing across much of Europe.

Concerns about the U.S. economy heightened following surveys showing sharp declines in consumer confidence and manufacturing activity last month, which roiled financial markets. Both were seen as more red flags that the economic expansion, now in its ninth year and the second longest on record, is losing steam.

https://reuters.com/

White House meets tech executives on future of jobs

Bold ideas to ensure American dominance on AI

The Trump administration, which has had strained relations with technology companies, met on Thursday with top tech executives to discuss ways to “ensure American dominance” of innovation and the future of high tech jobs. Chief executive officers who participated included Microsoft Corp’s (MSFT.O) Satya Nadella, Alphabet Inc’s (GOOGL.O) Sundar Pichai, Qualcomm Inc’s (QCOM.O) Steven Mollenkopf and Oracle Corp’s (ORCL.N) Safra Catz, the White House said.

President Donald Trump briefly stopped by the meeting that focused on the latest and next-generation technology, including artificial intelligence (AI), a White House official confirmed. “We would like their bold ideas to ensure American dominance” on AI, 5G wireless communication, quantum computing and advanced manufacturing, a senior White House official said.

http://www.reuters.com

artificial intelligence, Board Directors, China, entrepreneur, Europe, global economy, global finance, jobs, stock exchange, stocks, taxation, Unemployment, USA

Germany and France draw up no-deal Brexit plans

Angela Merkel tells German MPs they must ‘prepare for every scenario’ of UK’s exit

Germany and France are starting to step up their preparations for a no-deal Brexit even though both publicly insist an agreement with the UK over the terms of its departure from the EU can still be achieved. While there was there was still a chance for a deal, it was “only fitting as a responsible and forward-thinking government leadership that we prepare for every scenario”, the German chancellor told MPs in Berlin. “That includes the possibility of Britain leaving the EU without an agreement.”
France has published a draft bill that would allow the government to introduce new legal measures to avoid or mitigate the consequences of a hard Brexit by emergency decree, as opposed to parliamentary vote, within 12 months of the law being passed. Angela Merkel revealed for the first time on Wednesday that Germany was drawing up contingency plans, saying the government had started making “suitable preparations” for the possibility of Britain leaving with no accord.

http://www.theguardian.com

3.7 percent unemployment rate in US

A 49-year low

For a solid decade after the collapse of Lehman Brothers touched off a global financial crisis, there was good reason to think the U.S. economy remained broken, from skepticism about the health of the labor market to tepid economic growth and the moribund rate of interest paid on U.S. Treasury bonds.

In a heartbeat, that seemed to change this week, adding facts on the ground to Federal Reserve Chairman Jerome Powell’s glowing portrait of a historically rosy and extended period of super-low unemployment, modest inflation and steady growth.
It came through Amazon.com Inc’s (AMZN.O) move to a $15 minimum wage, possibly setting the bar for companies nationwide. It came through a jump in long-term bond yields that signaled faith the gears of growth will remain engaged for a record-long recovery.
http://www.reuters.com