Connect with us

Business

Government belatedly reveals loss of 105,000 jobs in October as full DOGE cutbacks come into view

Published

on



The United States gained a decent 64,000 jobs in November but lost 105,000 in October as federal workers departed after cutbacks by the Trump administration, the government said in delayed reports.

The unemployment rate rose to 4.6%, highest since 2021.

Both the October and November job creation numbers, released Tuesday by the Labor Department, came in late because of the 43-day federal government shutdown.

The November job gains came in higher than the 40,000 economists had forecast. The October job losses were caused by a 162,000 drop in federal workers, many of whom resigned at the end of fiscal year 2025 on Sept. 30 under pressure from billionaire Elon Musk’s purge of U.S. government payrolls.

Labor Department revisions also knocked 33,000 jobs off August and September payrolls.

Workers’ average hourly earnings rose just 0.1% from October, the smallest gain since August 2023. Compared to a year earlier, pay was up 3.5%, the lowest since May 2021.

Healthcare employers added more than 46,000 jobs in November, accounting for more than two-thirds of the 69,000 private sector jobs created last month. Construction companies added 28,000 jobs. Manufacturing shed jobs for the seventh straight month, losing 5,000 jobs in November.

Hiring has clearly lost momentum, hobbled by uncertainty over President Donald Trump’s tariffs and the lingering effects of the high interest rates the Federal Reserve engineered in 2022 and 2023 to rein in an outburst of inflation.

American companies are mostly holding onto the employees they have. But they’re reluctant to hire new ones as they struggle to assess how to use artificial intelligence and how to adjust to Trump’s unpredictable policies, especially his double-digit taxes on imports from around the world.

The uncertainty leaves jobseekers struggling to find work or even land interviews. Federal Reserve policymakers are divided over whether the labor market needs more help from lower interest rates. Their deliberations are rendered more difficult because official reports on the economy’s health are coming in late and incomplete after a 43-day government shutdown.

Labor Department revisions in September showed that the economy created 911,000 fewer jobs than originally reported in the year that ended in March. That meant that employers added an average of just 71,000 new jobs a month over that period, not the 147,000 first reported. Since March, job creation has fallen farther — to an average 35,000 a month.

The unemployment rate, though still modest by historical standards, has risen since bottoming out at a 54-year low of 3.4% in April 2023.

“The takeaway is that the labor market remains on a relatively soft footing, with employers showing little appetite to hire, but are also reluctant to fire,” Thomas Feltmate, senior economist at TD Economics, wrote in a commentary. “That said, labor demand has cooled more than supply in recent months, which is what’s behind the steady upward drift in the unemployment rate.’’

Adding to the uncertainty is the growing use of artificial intelligence and other technologies that can reduce demand for workers.

“We’ve seen a lot of the businesses that we support are stuck in that stagnant mode: ‘Are we going to hire or are we not? What can we automate? What do we need the human touch with?’’’ said Matt Hobbie, vice president of the staffing firm HealthSkil in Allentown, Pennsylvania.

“We’re in Lehigh Valley, which is a big transportation hub in eastern Pennsylvania. We’ve seen some cooling in the logistics and transportation markets, specifically because we’ve seen automation in those sectors, robotics.’’

Worries about the job market were enough to nudge the Fed into cutting its benchmark interest rate by a quarter of a percentage point last week for the third time this year.

But three Fed officials refused to go along with the move, the most dissents in six years. Some Fed officials are balking at further cuts while inflation remains above the central bank’s 2% target. Two voted to keep the rate unchanged. Stephen Miran, appointed by Trump to the Fed’s governing board in September, voted for a bigger cut – in line with what the president demands.

Tuesday’s report shows that “the labor market remains weak, but the pace of deterioration probably is too slow to spur the (Fed) to ease again in January,” Samuel Tombs, chief U.S. economist at Pantheon Macroeconimics, wrote in a commentary. The Fed holds its next policy meeting Jan. 27-28.

Because of the government shutdown, the Labor Department did not release its jobs reports for September, October and November on time.

It finally put out the September jobs report on Nov. 20, seven weeks late. It published some of the October data – including a count of the jobs created that month by businesses, nonprofits and government agencies – along with the November report Tuesday. But it did not release an unemployment rate for October because it could not calculate the number during the shutdown.



Source link

Continue Reading

Business

Mamdani gets 74,000 resumes in sign of New York City’s job-market misery

Published

on



More than 74,000 people, with an average age of 28, have applied for roles in Zohran Mamdani’s new administration.  Those figures are both a measure of enthusiasm for New York City’s incoming mayor and a sign of how tough the job market is for young people in the five boroughs.

Young voters and volunteers fueled the 34-year-old Mamdani’s fast rise from a relatively unknown Queens assemblyman to mayor-elect of America’s largest city. A lot of them had time on their hands: New Yorkers aged 16 to 24 faced a 13.2% unemployment rate in 2024, 3.6 percentage points higher than in 2019, according to a May report from the New York state comptroller. 

New York City had a 5.8% unemployment rate overall in August, 1.3 percentage points above the US average. The city added roughly 25,000 jobs this year through September, compared with about 106,000 during the same period in 2024, according to city data.

Mamdani’s campaign pledge to lower the cost of living in New York resonated with voters struggling to find jobs and establish themselves at a time when rents have stayed high and income growth has slowed. Now he’s looking to hire an unspecified number of roles across 60 agencies, 95 mayoral offices and more than 250 boards and commissions, with senior roles a priority, according to his transition team.

The typical size of the New York City mayoral staff — commissioners, communications, operations and community affairs — is about 1,100, according Ana Champeny, vice president of research at the Citizens Budget Commission, a nonprofit finance watchdog. City government in total hired 39,455 people in 2024, according to New York City data.

Applications for roles in Mamdani’s administration have come from workers of all experience levels and from a wide range of backgrounds and industries, said Maria Torres-Springer, co-chair of the mayor-elect’s transition team. About 20,000 of the applicants came from out of state.

When Barack Obama was elected US president in 2008, workers submitted more than 300,000 job applications to his administration. Blair Levin, who co-led the technology transition team for Obama, said he received around 3,000 of those resumes. He whittled the pool down to 75, a relatively easy task because he needed applicants with specific tech and economics skills, he said.

Without invoking the term “AI,” Torres-Springer said the applications would be filtered using “the typical technology that any big corporation would have in an applicant-tracking system.” The resumes will then be sorted and matched to different agencies.

Mamdani’s avid use of social media, which helped him connect with young people during his campaign, has continued into his transition efforts, creating excitement — among young people especially — about the prospect of joining his administration.

“The average age does tell a particularly interesting story in two ways,” Torres-Springer said. “It might be because of volatility in the job market but it’s also because I think we are attracting, the administration is attracting, New Yorkers who may not have considered government in the past.”

Take David Kinchen, a 28-year-old data engineer who moved to New York from northern Virginia three years ago. Since getting laid off from a job in fraud detection at Capital One, he has applied for more than 1,000 roles and completed at least 75 interviews without an offer, he said. Kinchen volunteered for Mamdani’s campaign and applied to the administration, highlighting his tech credentials and a passion for photography. 

“I did data engineering, so I could help with database decisions. There was also a creative option on the application, since I could work as a staff photographer too,” Kinchen said. 

Another applicant, 22-year-old Aurisha Rahman, has struggled to find a job since graduating with a civil-engineering degree from Hofstra University on Long Island. 

“The job market is even worse than it was last fall,” Rahman said. Mamdani’s resume portal was one of the few places she found open to entry-level applicants.

Rahman, who was born and raised in Queens, said she wants to give back to the city where she was raised and wouldn’t be picky about a position. “Whatever they need, I’ll do it. I don’t care,” she said. “Right now, it’s better to be busy with something than nothing.”



Source link

Continue Reading

Business

Sweetgreen co-founder is stepping down from executive role

Published

on



Sweetgreen Inc. co-founder Nathaniel Ru is leaving the struggling salad chain following a string of disappointing results and a precipitous decline in the company’s stock price. 

Ru, who has served as chief brand officer and been with the company for 20 years, is planning to retire on Jan. 1, according to a statement. He will continue to serve on the board. 

Sweetgreen’s share price has dropped nearly 80% since the start of 2025, while consumers have bristled at perceived high costs of the company’s food. Fast-casual chains have also broadly struggled in recent quarters. Operational stumbles, such as removing fries only months after they were introduced, have contributed to the market losing faith in Sweetgreen’s current management team.

Ru, who started the company alongside current Chief Executive Officer Jonathan Neman and Chief Concept Officer Nicolas Jammet, has overseen the company’s marketing and restaurant design. While Sweetgreen’s concept has been touted as innovative in the restaurant world, that creativity has sometimes hindered efficient operations.

The company has yet to turn a profit since going public in late 2021 and has amassed net losses totaling more than $500 million in the period. Despite this, the chain has continued to aggressively expand, with its store count growing 90% over the past four years.

The growth hasn’t led to better financial performance. Cava Group Inc., which sells Mediterranean-style bowls, has expanded more quickly than Sweetgreen while posting consistent quarterly profits.

Prioritizing branding and restaurant development has led to higher operating costs and hasn’t translated into increased foot traffic. Sales from existing restaurants has contracted three consecutive quarters, including a 9.4% drop most recently, the most since 2021. Analyst expect that trend to continue, and worsen, in the fourth period this year after the company warned weak traffic trends have continued.

In August, Neman said only one-third of locations were “consistently operating at or above standard,” while the remainder fell short on sourcing, cooking and uniformity.

This year, the company sold off its kitchen automation unit to Wonder Group Inc., generating $100 million in cash. That technology was supposed to help get restaurant unit economics under control and speed up service but was sacrificed to help shore up company finances. Sweetgreen will maintain a licensing agreement to use the tool.

In 2014, Ru told the business journal from the Wharton School of Business at the University of Pennsylvania that he and his partners started Sweetgreen with a single location in Washington DC. He said that the landlord initially hung up on him but eventually relented after months of pestering. He said the group came up with five business principles, including “win, win, win” and “keeping it real.”

In 2022, he told Marketing Brew that Sweetgreen seeks “intimacy at scale” as it expands while talking about the company’s collaborations with tennis player Naomi Osaka and NBA player Devin Booker.



Source link

Continue Reading

Business

$1 billion fraud revealed with guilty pleas from subprime auto lender Tricolor

Published

on



The founder of Tricolor Holdings led other top executives of the subprime auto lender on a seven-year campaign to defraud its largest lenders out of nearly $1 billion, authorities said Wednesday, as they announced two arrests and guilty pleas by two former executives.

Daniel Chu, the company’s founder and chief executive, was charged in an indictment unsealed in Manhattan federal court with directing multiple executives since 2018 to defraud investors and lending institutions. The fraudulent schemes included fabricating data and making false statements, according to the indictment.

A defense lawyer for Chu did not immediately return a message seeking comment.

Chu, 62, of Miami, was arrested in Florida, while David Goodgame, 49, of Waxahachie, Texas, the company’s former chief operating officer, was arrested in Texas. It was not immediately clear who will represent Goodgame at an initial court appearance.

U.S. Attorney Jay Clayton told a news conference that Chu repeatedly lied to banks and other credit providers as he turned fraud “into an integral component of Tricolor’s business strategy.”

He said the collapse of the company dealt a blow to car-buying customers who needed the services of a lending business that catered to people with troubled credit histories.

“Of course, if you have something like this happen, if you have fraud in that area, it becomes harder for those people to get auto loans,” Clayton said.

According to the indictment, the scope of the fraud was revealed in late August when lenders confronted Chu and other executives about Tricolor’s collateral.

Chu and others accused of carrying out the fraud initially tried to conceal it, saying the collateral issues were due to an administrative error, the indictment said. After those efforts failed, Chu extracted over $6 million from the company, spending some of it on the August purchase of a multimillion dollar property in Beverly Hills, California, the indictment said.

On Sept. 10, Tricolor filed for Chapter 7 bankruptcy because it owed over $900 million to the company’s largest lenders, the indictment said.

Chu could face a mandatory minimum sentence of 10 years in prison and a maximum of life behind bars if he is convicted on the top charge of running a continuing financial crimes enterprise. Other charges include conspiracy, bank fraud and wire fraud. Goodgame was charged with conspiracy, bank fraud and wire fraud.

Authorities also announced that a former chief financial officer and a former finance executive at Tricolor had pleaded guilty to charges on Tuesday in Manhattan and were cooperating with the government.



Source link

Continue Reading

Trending

Copyright © Miami Select.