Posts belonging to Category jobs

Elizabeth Warren To Joe Biden: Cancel Student Loans

Donald Trump support ending the Public Service Loan Forgiveness program

Sen. Elizabeth Warren (D-MA) tweeted today that President Elect Joe Biden and Vice President Elect Kamal Harris can cancel “billions of dollars of student loan debt.” According to Warren’s tweet, student loan forgiveness would be the most effective option for an economic stimulus: Biden-Harris can cancel billions of dollars in student loan debt, giving tens of millions of Americans an immediate financial boost and helping to close the racial wealth gap. This is the single most effective executive action available for massive economic stimulus.”

Warren, and Sen. Bernie Sanders (I-VT) championed student loan forgiveness on the presidential campaign trail. Sanders advocated for a full cancellation of student loan debt. For example, Sanders proposed that the federal government forgive all $1.6 trillion of student loans, including both private and federal student loans. Warren proposed student loan forgiveness for 95% of Americans and would have capped student loan forgiveness based on income. Both Sanders and Warren also support continuation of the Public Service Loan Forgiveness program—a federal program that forgives federal student loans for borrowers who work full-time for a qualified non-profit or public service employer.

In contrast, President Donald Trump and U.S. Secretary of Education Betsy DeVos support ending the Public Service Loan Forgiveness program. Trump and DeVos support student loan forgiveness through income-driven repayment plans, which are available for borrowers to repay federal student loans. However, they do not support a separate student loan forgiveness plan only for public servants.

Uber and Lyft drivers to remain independent contractors

California voters approve Prop. 22

Californians sided with the $200-million Proposition 22 campaign led by Uber and Lyft, voting to pass the measure and grant ride-hail and delivery companies an exemption from California employment law to continue treating workers as independent contractors.

The fight was one of the most closely watched ballot measure contests in the country and the costliest in state history. A win for the app-based companies has the potential to create a new campaign paradigm, with companies sidestepping government and spending large sums of money to sway voters with traditional advertisements and more unconventional direct marketing to customers. The measure’s passage also deals a blow to California’s powerful labor unions, underdogs in the race with far fewer financial resources than their foes.


U.S. Jobless Rate Set to Return to Single Digits

Two months before the U.S. election

America’s labor market probably extended its rebound in August to push the unemployment rate below 10% for the first time since the pandemic struck. With little more than two months before the U.S. election, reattaining that milestone in this week’s jobs report could provide ammunition for President Donald Trump to claim the economy is sustaining a recovery under his leadership. His Democratic opponents, led by Joe Biden, are likely to question whether such improvement can durably continue as America struggles to control the coronavirus.

U.S. employers projected to have added another 1.4 million jobs in August

Paul Krugman: “Stocks Are Soaring. So Is Misery.”

“Optimism about Apple’s future profits won’t pay this month’s rent”

“On Tuesday, the S&P 500 stock index hit a record high. The next day, Apple became the first U.S. company in history to be valued at more than $2 trillion. Donald Trump is, of course, touting the stock market as proof that the economy has recovered from the coronavirus; too bad about those 173,000 dead Americans, but as he says, “It is what it is.”

But the economy probably doesn’t feel so great to the millions of workers who still haven’t gotten their jobs back and who have just seen their unemployment benefits slashed. The $600 a week supplemental benefit enacted in March has expired, and Trump’s purported replacement is basically a sick joke.

Even before the aid cutoff, the number of parents reporting that they were having trouble giving their children enough to eat was rising rapidly. That number will surely soar in the next few weeks. And we’re also about to see a huge wave of evictions, both because families are no longer getting the money they need to pay rent and because a temporary ban on evictions, like supplemental unemployment benefits, has just expired” (Extract from an Op-ed written by The Nobel Prize Paul Krugman in the New-York Times).

5% of Nordic citizens wear face coverings in public

 The rest of Europe orders their use

The Nordic nations are continuing to hold out against face masks even as most of the world either orders or recommends their use.  Masks are a rare sight in supermarkets, on buses and along the streets in Stockholm, Copenhagen, Oslo, Helsinki and Reykjavik, and most who do wear them are tourists.

According to a recent survey by YouGov, only five to 10 per cent of respondents in the Nordic countries said they used a mask in public settings, a figure that has remained stable since the start of the crisis in March. At the same time, the corresponding figures have risen to between 70 and 80 per cent for most of the other 20 countries polled, including India and the United States.

IMF Projects 5% Global Economic Decline in 2020

The dire outlook is worse than the IMF’s last forecast in April

Global economic growth will decline nearly 5% this year, International Monetary Fund officials announced on Wednesday, a much grimmer forecast than their last projections in April as the coronavirus pandemic triggers the world’s worst recession since the Great Depression.

The IMF’s latest dire World Economic Outlook update is nearly 2 percentage points worse than its last forecast in April, representing a slower-than-expected global recovery. The organization also downgraded its 2021 growth projections from 5.8% to 5.4%, which would leave global gross domestic product next year about 6.5 percentage points lower than pre-pandemic projections from January.

V-shaped recovery or not?

The three months to June is set to be one of the best quarters for the S&P in 45 years

Global stocks resumed their march higher on Tuesday as investors took heart that better-than-expected surveys on business sentiment indicated companies were emerging from the worst of the global lockdowns. Equity, bond and currency markets shrugged off early concerns that a planned trade deal between the US and China was in doubt. The S&P 500 index closed up 0.4 per cent and the tech-heavy Nasdaq Composite was 0.7 per cent higher, closing for a fresh all-time high.

The moves extended a rally that began in March, driven in part by central banks’ aggressive plans to stimulate the economy. The three months to June is set to be one of the best quarters for the S&P in 45 years, according to Bespoke Investment Group, a New York analysis company. European stocks had their best day in a week, as the regional Stoxx 600 index rose 1.3 per cent. Germany’s Dax was the best performer, gaining 2.2 per cent.

Surveys of business executives in Europe’s three largest economies suggested they were markedly more upbeat in June than in the previous months. So-called purchasing managers’ indices, surveys of business confidence, across Europe were better than forecasts but most businesses were reporting a contraction in activity compared to the previous month.

Amazon, Google, Twitter, speak out against Trump H-1B visa freeze

Work visas H-1B widely used in the IT industry

The tech giants of the world are not pleased with Donald Trump’s decision to suspend all foreign work visas including H-1B, widely used in the IT industry, till the end of the year.

Hours after the proclamation was issued by the US President, Google CEO Sundar Pichai took to Twitter to express his disappointment.

The India-born tech head stressed on the importance of immigration and how it has contributed to America’s economic success. “Disappointed by today’s proclamation – we’ll continue to stand with immigrants and work to expand opportunity for all,” he wrote.


Just Eat Takeaway to Acquire Grubhub for $7.3 Billion

A foothold in the United States

Just Eat Takeaway, a European food delivery service, said on Wednesday that it had agreed to buy Grubhub for $7.3 billion, a deal that would give it a foothold in the United States.

In the all-stock deal, Just Eat Takeaway said it would value Grubhub at $75.15 per share, a 27 percent premium to Grubhub’s closing price of $59.05. Grubhub’s founder and chief executive, Matt Maloney, will join Just Eat Takeaway’s board and oversee its business in North America, the companies said.

U.S. layoffs ease in April

Hiring slumps to record low

Layoffs in the United States fell in April, but remained the second highest on record, while hiring hit an all-time low, suggesting the labor market could take years to recover from the COVID-19 crisis despite a surprise rebound in employment in May. The report from the Labor Department on Tuesday also showed a decline in job openings as the economy battles a recession triggered by the pandemic. The National Bureau of Economic Research, the arbiter of U.S. recessions, declared on Monday that the economy slipped into recession in February.

The monthly Job Openings and Labor Turnover Survey, or JOLTS, showed layoffs and discharges dropped 3.8 million in April to 7.7 million. That was second highest level since the government started tracking the series in 2000.

Prior to the pandemic, layoffs hovered around 1.8 million. They are nearly three times the worst month of the Great Recession. The layoffs and discharge rate fell to 5.9% in April from a record high 7.6% in March.

Avianca files for bankruptcy

Avianca counts United Airlines  as stakeholder

Avianca Holdings SA, one of the biggest carriers in Latin America, filed for Chapter 11 bankruptcy after travel bans across the region forced the Colombian airline to ground its fleet. Avianca, which counts United Airlines Holdings Inc. and Kingsland Holdings as stakeholders, filed for protection from its creditors in the Southern District of New York, according to court papers. It listed as much as $10 billion in liabilities and the same amount in assets. The company said it will not make bond payments due Monday.

The carrier grounded planes in late March after governments across Latin America sealed borders to curb the spread of the Covid-19 pandemic. Avianca had just emerged from a tumultuous year in which it restructured debt and embarked on a business turnaround plan aimed at restoring profitability by focusing on flights through its Bogota hub. It cited the impact of the pandemic in a statement Sunday, adding that it intends to keep flying during the reorganization.

Airbnb cuts 25% of staff amid travel downturn

Viability of Norwegian Cruise as a company is uncertain

Online booking platform Airbnb is planning to cut 25% of its staff as it grapples with plunging travel due to the pandemic. The firm is bracing for revenues to drop by half or worse this year. Boss Brian Chesky said it’s not clear when travel will return or what it will look like when it does.”While we know Airbnb’s business will fully recover, the changes it will undergo are not temporary or short-lived” he said. The move at Airbnb is the latest sign the travel industry is preparing for a prolonged downturn.

Norwegian Cruise Lines warned investors on Tuesday its viability as a company was uncertain, while Virgin Atlantic said it would cut 3,000 workers and quit Gatwick airport.

Airbnb’s planned cuts will affect about 1,900 people out of the company’s 7,500 staff.

OECD updates G20 summit on outlook for global economy

How to absorb growing economic blow

Increasingly stringent containment measures needed to slow the spread of the Coronavirus (Covid-19) will necessarily lead to significant short-term declines in GDP for many major economies, according to new OECD projections.  Efforts to contain virus and save lives should be intensified, and governments should plan stronger, more coordinated measures to absorb growing economic blow.

© OECD graph - The initial impact of containment measures will be felt worldwide

Immunity passports in UK

For people who have had the disease

The Government is considering introducing immunity passports, so those who have had coronavirus can get back to work.

Matt Hancock said he had a “very strong interest” in bringing in such a policy, after returning to work yesterday (Thursday) following his own spell of self-isolation with Covid-19.

However, the Health Secretary said that it was “too early in the science of immunity” to be able to bring in a comprehensive scheme.

The American Dream is best achieved in Nordic countries

Look at how the United States compares to Finland on economic and well-being indicators

Finnish Prime Minister Sanna Marin is a big believer in the “American Dream,” and she thinks it’s a lot easier to achieve now in her country than in the United States.

“I feel that the American Dream can be achieved best in the Nordic countries, where every child, no matter their background or the background of their families, can become anything,” Marin told The Washington Post in an interview on the sidelines of the World Economic Forum in Switzerland last month.

“We feel that the Nordic model is a success story,” said Marin, who became prime minister in December at age 34, making her briefly the youngest world leader (she lost that title in January when 33-year-old Sebastian Kurz returned to power as Austrian chancellor).