Employment

The Exchange: Newark Mayor Ras Baraka

20 Dec 2017

Will Amazon choose New Jersey's largest city as the location for its second headquarters? That's what hometown native Baraka is hoping - and he's lobbying hard to make it happen, even trying to cajole neighboring New York City to play a role in swaying the e-commerce juggernaut's decision.

Ryanair investors faintly see higher-cost future

18 Dec 2017

They have knocked over 2 bln euros off the budget airline’s market value since it caved in and recognised unions on Friday, averting a Christmas strike. That’s more than the extra staff outlays may be worth. If easyJet is a guide, though, Ryanair’s expenses will rise further.

Bank of England transfer defies financial gravity

11 Dec 2017

Britain’s opposition Labour party says it may move parts of the central bank to Birmingham. That may appeal to voters, but both the BBC and HSBC have found relocating expensive and difficult. The idea also ignores the reasons London’s financial centre exerts such a strong pull.

Shareholder ethos holds back U.S. wage growth

8 Dec 2017

The U.S. economy added more jobs than expected in November but wage growth remained tepid. President Trump claims the GOP tax bill will lead to big raises but most companies plan to spend profit on buybacks and dividends. When the market is king, workers tend to come last.

Fossil-fuel slowdown spreads pain at GE and beyond

7 Dec 2017

The conglomerate is laying off 12,000 people in a power division that lights up 30 percent of the world. It blamed overcapacity amid a shift from coal and gas to renewables. Other divisions closely tied to fossil fuels are also ailing. GE’s woes suggest a wider shakeout ahead.

Hadas: The mystery of lost competition

6 Dec 2017

The U.S. tax cut is expected to boost corporate earnings but not lower prices or raise wages. That implies there’s too much tacit collusion for basic economic theory to work as designed. Limited price competition is great for shareholder value, but bad for the economy.

Jeremy Corbyn pay row shows costs of bank excess

1 Dec 2017

The UK opposition leader attacked “speculators” and criticised banker pay, as UBS chief Sergio Ermotti defended it. A decade after the crisis, remuneration still fuels dissent. Shareholders' failure to rein it in has led to dismal returns. Volatile politics could be more damaging.

Cox: Amazon to become biggest impact investor ever

16 Nov 2017

Jeff Bezos' $550 billion creation has become a Shiva-like force, threatening whole swaths of the retail industry and its jobs, while paying a relative pittance in taxes. By choosing a second HQ in 2018 where it's needed most the company can forestall a social and state backlash.

Japan’s growth streak starts to look shakier

15 Nov 2017

GDP grew an annualised 1.4 pct last quarter, marking the longest unbroken growth run in 16 years. The data is volatile, and often revised, but a global boom appears to be offsetting weaker domestic demand. That underscores the need for further structural reform.

UK economy will share Theresa May’s pain

13 Nov 2017

The Prime Minister is facing growing challenges to her leadership from the ruling party’s pro- and anti-EU factions. Political disarray increases the risks that leaving the European Union will do serious economic harm. A softer Brexit is growing harder to deliver.

Heads or tails, Mark Carney loses

17 Oct 2017

British inflation has hit 3 percent, the highest level since 2012. No wonder the Bank of England chief is hinting policy rates may soon rise. Carney’s problem is that he will be criticised for hurting a slow-growing economy if he hikes and accused of inconsistency if he delays.

Bad jobs data tests White House braggadocio

6 Oct 2017

The U.S. economy lost 33,000 positions last month, largely due to hurricanes Harvey and Irma. It’s probably a temporary blip. But President Trump and his aides have touted monthly employment gains and other snapshot economic figures when it suits them. They own the downturns, too.

Dixon: No escape from debtors’ prison for Greece

11 Sep 2017

Alexis Tsipras is desperate to avoid surveillance of his actions by the country’s creditors when its third bailout ends next August. The best the Greek prime minister can hope for is to move from a high-security unit to an open prison – and only if he behaves.

Deutsche Bank CEO tells truth to robotic employees

7 Sep 2017

John Cryan wants the German bank to embrace a “revolutionary spirit” as people lose their jobs to artificial-intelligence technology. His comments reflect the competitive reality – but Deutsche’s whopping 86 pct cost-to-revenue ratio makes its staff among the most vulnerable.

Macron may be French unions’ new best friend

5 Sep 2017

The French president’s labour reforms will give firms more scope to bargain directly with their workers, rather than submit to industry-wide agreements. That will fan demand for training in employment law. The odd side-effect could be increased trade union membership.

Dream of U.S. job surge is partly in Trump’s hands

1 Sep 2017

Although August’s 156,000 new positions fell short of forecasts, the trend is steady. Yet the president may soon subject nearly 800,000 children of illegal immigrants to deportation. Some 30,000 could lose jobs each month; GDP would suffer too. That’s an avoidable hit to growth.

Macron’s labour reforms are a gutsy start

31 Aug 2017

Changes such as greater bargaining freedom for employers will make the economy a bit more dynamic. The symbolism is as important. Introducing a highly unpopular cap on unfair dismissal payouts shows President Emmanuel Macron is willing to reform at the expense of poll ratings.

British wage mystery has non-British explanation

16 Aug 2017

The jobless rate has fallen to 4.4 percent, its lowest in over four decades, yet wage growth is tepid. Two things help explain the anomaly: a pool of people on zero-hour contracts available to switch into permanent jobs, and a surprising rise in EU nationals working in the UK.

Silicon Valley tries to out-Trump Trump on jobs

2 Aug 2017

Amazon is adding 50,000 to its ranks. Google is donating $50 mln to training. Touting such plans is a response to fears that tech will, like trade, be blamed for killing jobs as automation and AI take hold. Aping the president’s braggadocio to reduce any sting is a smart move.

U.S. colleges may need to start on M&A course

25 Jul 2017

After tripling in real terms since the early 1970s, tuition costs are now rising only a hair faster than CPI. Cost cuts won't offset flagging enrollment, the result of a stronger job market and demographic shifts. Merging could help, especially for small private schools.