<a href="http://dailywire.com/topic/unemployment" target="_blank" rel="noopener">Unemployment</a> remained historically low in November as the number of new jobs soared past economists’ forecasts, according to <a href="https://www.bls.gov/news.release/empsit.nr0.htm">data</a> from the Bureau of Labor Statistics released Friday.
Total nonfarm employment increased by 263,000 last month, surpassing analysts’ expectations of 200,000 new positions. The unemployment rate was unchanged from the previous month at 3.7%.
&#8220;The November employment report delivers a holiday season package of good news for American workers, including a strong increase in wages,” Bankrate Senior Economic Analyst Greg McBride said in comments provided to The Daily Wire. “In keeping with the classic divide sometimes seen between Main Street and Wall Street, the report tells the Federal Reserve it has more work to do in its battle against inflation, meaning higher interest rates to come.&#8221;
The central bank has indeed been eyeing employment data as officials roll back nearly three years of aggressive monetary stimulus, including near-zero target federal funds rates and the purchase of government securities from market actors. Policymakers have <a href="https://www.dailywire.com/news/federal-reserve-hikes-interest-rates-three-quarters-of-a-point" target="_blank" rel="noopener">raised rates</a> by three-quarters of a percentage point on four consecutive occasions, leading to chaos in the housing market and raising the cost of borrowing money for consumers and businesses.
Industries such as leisure and hospitality, healthcare, government, information, and manufacturing witnessed a “generally good distribution of job growth,” according to McBride, who observed that “retailing as well as warehousing and distribution posted job declines” in an unexpected reality for the holiday season. Amazon and FedEx revealed plans to <a href="https://www.dailywire.com/news/two-critical-companies-will-lay-off-furlough-employees-during-holiday-shopping-season" target="_blank" rel="noopener">dismiss employees</a> ahead of the critical period for logistics companies; the former will lay off employees in human resources, retail, and devices, while the latter will furlough delivery drivers.
Businesses have faced labor shortages as the number of positions available exceeds the number of workers available to fill them. “There continues to be a detrimental disconnect or imbalance between the supply and demand for labor,” McBride continued. “Demand broadly appears to remain remarkably strong, but any number of factors are continuing to weigh on the supply of prospective workers with labor force participation falling over the past two months and still below pre-pandemic levels.&#8221;
Federal Reserve Chair Jerome Powell <a href="https://www.dailywire.com/news/federal-reserve-chair-jerome-powell-discusses-future-slowdown-of-rate-hikes" target="_blank" rel="noopener">remarked</a> on Wednesday that the workforce “participation gap” is largely a result of “excess retirements” that occurred beyond “what would have been expected from population aging alone,” even as young people largely return to the job market.
Gains in nominal wages continued to lag behind rising price levels, implying an overall decrease in household purchasing power. While average hourly earnings rose 5.1% year-over-year as of November, the most recent inflation <a href="https://www.bls.gov/news.release/cpi.nr0.htm" target="_blank" rel="noopener">report</a> from the Bureau of Labor Statistics showed 7.7% headline inflation as of October; price level data has not yet been released for last month.
The robust employment data will likely lead Federal Reserve officials to continue hiking interest rates. Some analysts have <a href="https://www.dailywire.com/news/elon-musk-agrees-with-a-furious-jeremy-siegel-that-fed-actions-which-blew-up-the-stock-market-make-absolutely-no-sense" target="_blank" rel="noopener">criticized</a> policymakers for causing harm through their excessive zeal to manage inflation soon after a prolonged increase in the money supply.
“The Federal Reserve checks the box off on this report now less than two weeks away from its next policy-setting session,” McBride remarked. “In any case, Federal Reserve officials are intent on raising the benchmark rate further into restrictive territory.  Even if the central bank eases up as expected on the magnitude of rate increases, the journey likely continues in 2023 toward a higher ultimate rate destination in the pursuit of restraining inflation.&#8221;

Consumer Prices See Largest Increases In 30 Years

Unemployment Down; Robust Labor Market As Holidays Approach, Jobs Report Shows

Jobs Report Shows Robust Labor Market Ahead Of Holidays; Unemployment Remains Low

Economy

Federal Reserve

Jobs

Unemployment

Speaking at the 59th Annual Economic Forecast Luncheon in Phoenix, Arizona, Federal Reserve Governor Christopher Waller <a href="https://www.federalreserve.gov/newsevents/speech/waller20221116a.htm" target="_blank" rel="noopener">implied</a> that employers should slow down any wage increases they hand out so that the American economy can temper inflation.
Waller warned that the economic growth in the third quarter the first half of the year had experienced economic doldrums was only temporary, and that “weak growth has returned in the last quarter of this year and will persist into 2023.” He surmised that because consumer and business spending had softened and Americans had voiced near-record-low consumer attitudes vis-à-vis the economy because of high inflation.
Yet he championed the slowing growth, calling it “absolutely necessary to bring inflation down to our 2 percent target” while crediting the Federal Reserve’s actions as the cause, using as an example the housing market, which has been hit hard by rising interest rates.
“Housing may be the first but won&#8217;t be the last sector of the economy where higher interest rates will have the effect of dampening demand and will ultimately help moderate price increases,” he asserted.
Then he turned to the labor market, acknowledging, “There are almost two jobs for every person looking for work. Wages have been rising more quickly than they have in decades &#8230;”
“We are starting to see some tentative signs of a moderation in wage growth,” Waller pronounced, before giving his implicit warning to employers: “Wage growth has been a contributing factor to inflation, especially in the service sector, so it is important to get the labor market into better balance to bring future wage growth down to a more sustainable level that will assist in moving overall inflation lower.”
In March 2022, Fed Chair Jerome Powell <a href="https://www.bloomberg.com/news/articles/2022-03-17/powell-treads-tricky-path-in-saying-wages-are-rising-too-fast" target="_blank" rel="noopener">offered a similar message</a> regarding wage hikes, saying, “The promise of wages moving up is a great thing. But the increases are running at levels that are well above what would be consistent with our 2% inflation goal over time.”
In May, Powell <a href="https://www.wsj.com/articles/transcript-fed-chief-powells-postmeeting-press-conference-11651696613" target="_blank" rel="noopener">commented,</a> “Wages are rising at the fastest pace in many years,” also declaring, “In principle, it seems as though, by moderating demand, we could see vacancies come down, and as a result—and they could come down fairly significantly and I think put supply and demand at least closer together than they are, and that that would give us a chance to have lower—to get inflation—to get wages down and then get inflation down without having to slow the economy and have a recession and have unemployment rise materially.”

Federal Reserve Hosts FedListens Event

Fed Governor Implies Employers Should Slow Down Wage Increases

U.S.

Wages

<a href="http://dailywire.com/topic/twitter" target="_blank" rel="noopener">Twitter</a> CEO <a href="http://dailywire.com/topic/elon-musk" target="_blank" rel="noopener">Elon Musk</a> wrote in a midnight email to employees that they should expect “extremely hardcore” working hours if they desire to remain at the company.
The message, which comes weeks after Musk purchased the social media platform in a $44 billion acquisition deal, occurs as he faces internal opposition to many of his changes. The world’s richest man has already <a href="https://www.dailywire.com/news/read-it-elon-musk-sends-blunt-message-to-3700-fired-twitter-employees" target="_blank" rel="noopener">reduced headcount</a> by half and fired a handful of employees who <a href="https://www.dailywire.com/news/twitter-employee-calls-out-elon-musk-on-twitter-it-doesnt-end-well-for-the-employee" target="_blank" rel="noopener">publicly opposed</a> him.
“Going forward, to build a breakthrough Twitter 2.0 and succeed in an increasingly competitive world, we will need to be extremely hardcore,” the email from Musk explained, according to a <a href="https://www.businessinsider.co.za/read-musks-midnight-email-telling-twitter-staff-work-long-hours-2022-11" target="_blank" rel="noopener">report</a> from Business Insider. “This will mean working long hours at high intensity. Only exceptional performance will constitute a passing grade.”
Musk, who says he has worked 120 hours per week in the past but considers working 80 hours per week to be “pretty sustainable,” said days ago during an <a href="https://www.dailywire.com/news/i-torture-myself-elon-musk-sheds-light-on-just-how-enormous-his-workload-is" target="_blank" rel="noopener">interview</a> that his own schedule can be somewhat chaotic. “I mean, I have too much work on my plate, that is for sure. No doubt about it,” he commented. “The amount that I torture myself is next level, frankly.”
Musk said in the email that employees must assent to being “part of the new Twitter” through a Google Form by the end of the workday Thursday, or else they would “receive three months of severance.” He also hinted at further layoffs for non-technical employees who do not have an immediate impact on running the website.
“Twitter will also be much more engineering-driven,” Musk continued. “Design and product management will still be very important and report to me, but those writing great code will constitute the majority of our team and have the greatest sway. At its heart, Twitter is a software and servers company, so I think this makes sense.”
The continued dismissal of Twitter employees occurs after Musk <a href="https://www.dailywire.com/news/musk-fires-person-who-censored-hunter-biden-story-banned-conservative-accounts-buckle-up-motherfs" target="_blank" rel="noopener">immediately fired</a> members of the company’s leadership upon taking control of the platform, including chief executive Parag Agrawal and legal czar Vijaya Gadde, who pushed for the suspension of former President Donald Trump and suppressed the Hunter Biden laptop story days before the 2020 election.
In recent months, Musk has also campaigned against the widespread use of remote work within his companies. The multibillionaire <a href="https://www.dailywire.com/news/musk-remote-work-is-no-longer-acceptable-at-tesla" target="_blank" rel="noopener">informed</a> employees at electric automaker Tesla that work-from-home is “no longer” acceptable and commented on social media that those who disagree with the new policy “should pretend to work somewhere else.” During a town hall meeting with Twitter employees months before the acquisition was finalized, Musk was <a href="https://www.dailywire.com/news/freedom-of-speech-and-freedom-of-reach-elon-musk-tells-twitter-employees-users-should-be-able-to-tweet-pretty-outrageous-things" target="_blank" rel="noopener">asked</a> about remote work, prompting him to assert that working “on location physically” is far superior to other arrangements.
Read the full email from Musk to employees of Twitter here:
<blockquote>Going forward, to build a breakthrough Twitter 2.0 and succeed in an increasingly competitive world, we will need to be extremely hardcore. This will mean working long hours at high intensity. Only exceptional performance will constitute a passing grade.
Twitter will also be much more engineering-driven. Design and product management will still be very important and report to me, but those writing great code will constitute the majority of our team and have the greatest sway. At its heart, Twitter is a software and servers company, so I think this makes sense.
If you are sure that you want to be part of the new Twitter, please click yes on the link below:
[Google form link] 
Anyone who has not done so by 5pm ET tomorrow (Thursday) will receive three months of severance.
Whatever decision you make, thank you for your efforts to make Twitter successful.</blockquote>

SpaceX And T-Mobile Hold Joint Event In Texas

READ IT: Elon Musk Tells Twitter Staff To Work ‘Long Hours At High Intensity’ Or Hit The Road

Musk Tells Twitter Employees To Brace For 'Extremely Hardcore' Work Conditions Or Go Elsewhere

Big Tech

Business

Elon Musk

Twitter

The <a href="http://dailywire.com/topic/unemployment" target="_blank" rel="noopener">unemployment</a> rate reached 3.7% in the month of October as <a href="http://dailywire.com/topic/jobs" target="_blank" rel="noopener">payrolls</a> rose by 261,000, according to a Friday <a href="https://www.bls.gov/news.release/empsit.nr0.htm" target="_blank" rel="noopener">report</a> from the Bureau of Labor Statistics.
The health care sector saw the most robust employment gains, while professional services and manufacturing likewise witnessed notable increases. The hospitality industry continues to suffer most from labor shortages, with employment continuing to remain well below levels seen at the beginning of 2020.
Jobless rates have remained between 3.5% and 3.7% for much of the year. The most recent figures indicate a 0.2% uptick from levels recorded in September.
&#8220;The October employment report is more of a mixed bag than we’ve seen recently, consistent with an economy absorbing this year’s interest rate increases, a strong dollar, high inflation, and challenges confronting the global economy,” Bankrate Senior Economic Analyst Mark Hamrick said in remarks provided to The Daily Wire. &#8220;Hiring failed to keep pace with the robust trends of the past couple of years. It is quite possible that we’ve seen the low established in the unemployment rate for a while.”
Payroll numbers were better than expected, although analysts forecasted unemployment to remain at a 3.5% rate. The Dow Jones Industrial Average gained 345 points, or 1.1%, on the news, while the S&amp;P 500 and Nasdaq respectively ticked upward 1.4% and 1.6%.
The employment report was released days after the Federal Reserve raised the target federal funds rate by 0.75% for the <a href="https://www.dailywire.com/news/what-the-federal-reserves-changing-approach-toward-rate-hikes-could-mean-for-the-economy" target="_blank" rel="noopener">fourth consecutive time</a>, even as policymakers reassured markets that they will avoid establishing an overly zealous contractionary monetary regime. Rate hikes discourage economic activity by increasing borrowing costs for consumers and businesses. The central bank is attempting to quell inflation, which rose year-over-year at an 8.2% rate as of two months ago, according to <a href="https://www.bls.gov/news.release/cpi.nr0.htm" target="_blank" rel="noopener">data</a> from the Bureau of Labor Statistics.
&#8220;Over the next year, the pace of hiring is likely to slow sharply,” Hamrick added. “This report alone won’t sway the Federal Reserve to adopt a new tact on rising interest rates. It has a lot more data to digest, including on inflation, before the next policy-setting meeting in mid-December.&#8221;
President Joe Biden reacted to the employment news, which comes days before the midterm elections, as a sign that the labor economy “remains strong” under his watch, despite some signs of a hiring slowdown.
“Inflation is our top economic challenge, and I know that American families are feeling squeezed. The global inflation that is raging in other countries is hitting us as well. I’ve got a plan to bring costs down, especially for health care, energy, and other everyday expenses,” the commander-in-chief said in a <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2022/11/04/statement-by-president-joe-biden-on-the-october-jobs-report/" target="_blank" rel="noopener">statement</a>. “We’re going to do what it takes to bring inflation down. But as long as I’m president, I’m not going to accept an argument that the problem is that too many Americans are finding good jobs.”
Various economic bottlenecks have decreased living standards as inflation surpasses wage growth. Polls <a href="https://www.dailywire.com/news/new-midterm-poll-spells-bad-news-for-democrats-on-the-economy" target="_blank" rel="noopener">show</a> that voters, who indicate higher trust for Republicans than Democrats in handling economic policy, have their eyes on the economy more than any other issue, including controversial social issues such as abortion or concerns about the strength of democracy.

Joe Biden

Unemployment Spikes Upward As Economy Deals With Rate Hikes And Elevated Prices; Biden Reacts

Stripe and Lyft became the latest <a href="http://dailywire.com/topic/technology" target="_blank" rel="noopener">technology</a> companies on Thursday to dismiss large portions of their <a href="http://dailywire.com/topic/jobs" target="_blank" rel="noopener">workforce</a>, while Amazon announced that they would freeze hiring.
Although <a href="http://dailywire.com/topic/economy" target="_blank" rel="noopener">macroeconomic</a> headwinds have impacted most industries, the technology sector has witnessed the most pronounced <a href="http://dailywire.com/topic/stock-market" target="_blank" rel="noopener">stock market</a> selloffs. Companies such as Meta recently issued dismal <a href="https://www.dailywire.com/news/meta-shares-fall-to-lowest-level-since-2016-as-company-burns-billions-on-metaverse-inflates-payrolls" target="_blank" rel="noopener">third-quarter earnings</a> reports, leading some executives and investors to pursue layoffs in order to reduce costs through the choppy economic waters.
Stripe CEO Patrick Collison sent a <a href="https://stripe.com/newsroom/news/ceo-patrick-collisons-email-to-stripe-employees" target="_blank" rel="noopener">note</a> to employees at the payment processing platform announcing that executives would be reducing headcount by roughly 14% due to “sparser startup funding” and other trends stemming from the poor economy. “Our business is fundamentally well-positioned to weather harsh circumstances. We provide an important foundation to our customers and Stripe is not a discretionary service that customers turn off if budget is squeezed,” Collison wrote. “However, we do need to match the pace of our investments with the realities around us.”
The move will reduce headcount to roughly 7,000, marking the same number of workers Stripe employed at the beginning of the year. Collison added that the company was “much too optimistic” about the internet economy’s growth and “grew operating costs too quickly.”
Meanwhile, Lyft CEO Logan Green and Lyft President John Zimmer said in an <a href="https://www.cnbc.com/2022/11/03/lyft-cuts-13percent-of-its-workforce.html" target="_blank" rel="noopener">email</a> obtained by CNBC that the ridesharing company would dismiss 13% of workers based upon “deprioritized initiatives, an effort to reduce management layers, broader savings goals, and, in some cases, performance trajectory.” The company currently has approximately 5,000 employees.
“There are several challenges playing out across the economy. We’re facing a probable recession sometime in the next year and rideshare insurance costs are going up,” the executives wrote. “We worked hard to bring down costs this summer: we slowed, then froze hiring; cut spending; and paused less-critical initiatives. Still, Lyft has to become leaner, which requires us to part with incredible team members.”
Also on Thursday, Amazon Senior Vice President of People Experience and Technology Beth Galetti <a href="https://www.aboutamazon.com/news/workplace/a-note-about-hiring-from-beth-galetti" target="_blank" rel="noopener">informed</a> employees that the e-commerce giant would institute a freeze on incremental hires in the corporate workforce. “We anticipate keeping this pause in place for the next few months, and will continue to monitor what we’re seeing in the economy and the business to adjust as we think makes sense,” she said.
Several technology companies, including Microsoft, Tesla, and Coinbase, already announced <a href="https://www.dailywire.com/news/recession-fears-lead-big-tech-companies-to-pause-hiring-cut-jobs" target="_blank" rel="noopener">hiring pauses or layoffs</a> earlier this year. Elon Musk, who recently took control of social media platform Twitter, plans to dismiss 3,700 of the company’s 7,500 employees as soon as Friday, according to a <a href="https://www.dailywire.com/news/the-purge-begins-musk-is-terminating-massive-number-of-twitter-employees-on-friday-report-says" target="_blank" rel="noopener">report</a> from Bloomberg News.
In a recent <a href="https://www.dailywire.com/news/meta-shares-fall-to-lowest-level-since-2016-as-company-burns-billions-on-metaverse-inflates-payrolls" target="_blank" rel="noopener">letter</a>, Altimeter Capital Management CEO Brad Gerstner told Meta CEO Mark Zuckerberg that his company, which has more than tripled its workforce from 25,000 people to 85,000 people over the past four years, could reduce costs by cutting bloated payrolls.
“It is a poorly kept secret in Silicon Valley that companies ranging from Google to Meta to Twitter to Uber could achieve similar levels of revenue with far fewer people,” the investor remarked. “I would take it a step further and argue that these incredible companies would run even better and more efficiently without the layers and lethargy that comes with this extreme rate of employee expansion.”

Close-up Of Unemployed Businessperson Carrying Cardboard Box

Two More Tech Companies Fire Large Portions Of Their Staff

Stripe, Lyft Latest Companies To Lay Off Workers, Amazon Freezes Hiring

Amazon

Lyft

Recession

Stock Market

Technology

Nearly 1 million more disabled workers are in the <a href="http://dailywire.com/topic/jobs" target="_blank" rel="noopener">job market</a> than during the early days of 2020, according to an <a href="https://libertystreeteconomics.newyorkfed.org/2022/10/long-covid-appears-to-have-led-to-a-surge-of-the-disabled-in-the-workplace/" target="_blank" rel="noopener">analysis</a> released last week by the <a href="http://dailywire.com/topic/federal-reserve" target="_blank" rel="noopener">Federal Reserve</a> Bank of New York.
Self-reported disability data from the Census Bureau shows that there are cumulatively 1.7 million more working-age adults claiming to have a disability since the middle of 2020, according to Richard Deitz, an economic research adviser for the regional bank. The analyst points to long COVID, a condition marked by fatigue and brain fog that can last for months after catching the virus, as a primary factor behind the phenomenon.
“The economic costs of long COVID is estimated to be in the trillions. While many with long COVID have dropped out of the labor force because they can no longer work, many others appear to be working despite having disabilities related to the disease,” he remarked. “Some of these so-called long-haulers have relatively mild symptoms that may not significantly interfere with daily life, but others have symptoms serious enough that they have become disabled.”
Indeed, one Harvard University <a href="https://scholar.harvard.edu/files/cutler/files/long_covid_update_7-22.pdf" target="_blank" rel="noopener">study</a> cited by Deitz estimates that the economic costs of long COVID, primarily induced by decreased quality of life, reduced earnings, and higher medical spending, sum to approximately $3.7 trillion.
Research into the effects of long COVID, however, is limited by the novelty of the condition. “It is not clear if, when, and how those with long COVID will recover,” Deitz added. “A recent study suggests many eventually do, but the disease is still new, and much remains unknown.”
The phenomenon occurred after the lockdown-induced recession prompted millions of Americans to retire or otherwise <a href="https://www.dailywire.com/news/americans-continue-to-opt-out-of-the-workforce" target="_blank" rel="noopener">exempt themselves</a> from the job market. The labor force participation rate had already dropped from 66% in 2008 to 62% in 2022, falling another 3% between February 2020 and April 2020 alone before rebounding in recent months, according to <a href="https://fred.stlouisfed.org/series/CIVPART" target="_blank" rel="noopener">data</a> from the Bureau of Labor Statistics. Labor shortages have contributed to inflationary pressures as companies <a href="https://www.dailywire.com/news/3-in-10-small-businesses-have-automated-jobs-amid-nationwide-worker-shortage" target="_blank" rel="noopener">struggle to hire</a> essential staff.
The Department of Health and Human Services and the Department of Justice released <a href="https://www.hhs.gov/civil-rights/for-providers/civil-rights-covid19/guidance-long-covid-disability/index.html" target="_blank" rel="noopener">guidance</a> last year announcing that individuals experiencing long COVID are eligible for protections under the Americans with Disabilities Act. This federal law protects disabled people from discrimination. Beyond fatigue and decreased cognition, other symptoms can include chest pain, heart palpitations, joint and muscle pain, and difficulty breathing.
“Private employers with fifteen or more workers, as well as state and local governments, may be required by law to make reasonable accommodations for those with long COVID, though workers may struggle for an accurate diagnosis from their physicians since there are no explicit tests for it,” Deitz said. “Employers and employees typically work together to determine whether a reasonable accommodation exists that would enable the employee to perform their job.”
Despite continually low participation in the job market, robust employment rates have been a bright spot in an otherwise beleaguered economy. The unemployment rate edged downward to 3.5% last month, according to <a href="https://www.bls.gov/news.release/pdf/empsit.pdf" target="_blank" rel="noopener">data</a> from the Bureau of Labor Statistics, which followed months of already historically low degrees of joblessness. Policymakers at the Federal Reserve have cautioned, however, that <a href="https://www.dailywire.com/news/expect-higher-unemployment-as-federal-reserve-tackles-inflation-warns-top-policymaker" target="_blank" rel="noopener">contractionary monetary policy</a> meant to battle inflation could negatively impact employment.

A NOW HIRING sign

Number Of Disabled Workers In The Job Market Soars By Nearly 1 Million Since Early 2020

Long COVID Leads To More Disabled Workers

COVID-19

Flex Association, an industry group representing gig <a href="http://dailywire.com/topic/economy" target="_blank" rel="noopener">economy</a> companies such as Uber and Instacart, explained that a proposed rule change from the Labor Department threatens millions of American independent <a href="http://dailywire.com/topic/jobs" target="_blank" rel="noopener">contractors</a> who enjoy their current work arrangements.
The <a href="https://public-inspection.federalregister.gov/2022-21454.pdf" target="_blank" rel="noopener">new rule</a>, which is undergoing a public comment period slated to conclude in November, would prompt regulators to consider whether independent contractors are “economically dependent” on their employers or are truly conducting business for themselves. Labor Secretary Marty Walsh <a href="https://www.dailywire.com/news/biden-labor-department-announces-new-rule-to-crack-down-on-freelancing" target="_blank" rel="noopener">claimed</a> last week that individuals in the former category may be more easily denied their rights by the companies for which they work.
Flex Association CEO Kristin Sharp told The Daily Wire that most independent contractors “choose this work because of the flexibility it provides,” while a “significant majority have also consistently indicated that they prefer the freedom that comes from independent contractor status.” An <a href="https://www.flexassociation.org/" target="_blank" rel="noopener">analysis</a> from Flex Association revealed that the gig economy has generated $348 billion in economic activity.
“App-based earners can choose when, where, how often and for whom they work; traditional employment does not offer that level of flexibility,” Sharp continued. “While it remains to be seen how the proposed rule might impact the industry we represent, we know that forcing a one-sized-fits-all approach doesn’t match the needs of workers.”
Indeed, roughly 16% of Americans have participated in gig economy and independent contracting work such as delivering groceries, cleaning homes, or delivering packages, according to a <a href="https://www.pewresearch.org/internet/2021/12/08/the-state-of-gig-work-in-2021/" target="_blank" rel="noopener">survey</a> from Pew Research, which found that young people and low-income individuals are most likely to earn money through a gig platform. As a result of various labor standard laws, hiring an employee can cost between being 25% and 40% more than the worker’s base salary, according to an <a href="https://web.mit.edu/e-club/hadzima/pdf/how-much-does-an-employee-cost.pdf" target="_blank" rel="noopener">analysis</a> from the Massachusetts Institute of Technology.
A previous <a href="https://www.flexassociation.org/post/flexibility-must-come-first" target="_blank" rel="noopener">blog post</a> from Flex Association contended that the Labor Department proposal is not consistent with twenty-first century labor market conditions and noted that officials should instead pursue laws that improve independent work. According to a <a href="https://assets.morningconsult.com/wp-uploads/2020/08/23134151/Global-Strategy-Group-Memo-Independent-Contractor-Attitudes-on-Classification-08.19.20.pdf" target="_blank" rel="noopener">poll</a> from Global Strategy Group, 90% of independent contractors report that their status is a “good arrangement for them and their lifestyle,” while only 3% said the arrangement is “bad.”
The federal rule change proposal induced comparisons to Assembly Bill 5, a statute in California which claims that workers are often “exploited” through their classification as independent contractors. The law <a href="https://www.dailywire.com/news/california-tells-truckers-blockading-port-over-harsh-labor-law-to-comply-and-move-forward" target="_blank" rel="noopener">entered into effect</a> earlier this year after an extensive series of court battles, inducing protests from owner-operator truckers and a subsequent rebuke from the state government to “move forward” and “comply with the law.”
The costs of such policies incurred by workers appear to outweigh the benefits. An <a href="https://progresschamber.org/new-study-finds-millions-could-lose-work-if-u-s-reclassifies-contractors/" target="_blank" rel="noopener">analysis</a> from Chamber of Progress found that a “national rule reclassifying independent contractors as full-time employees” could result in a loss of direct income for 3.4 million American workers, producing a decline in net earnings of more than $42 billion.
In the state of New York, policymakers enacted a measure in the spring of 2020 that temporarily <a href="https://www.dailywire.com/news/unconstitutional-food-delivery-services-sue-new-york-city-over-delivery-fee-regulations" target="_blank" rel="noopener">limited the fees</a> which app-based food delivery companies such as DoorDash, Uber Eats, and Grubhub could charge restaurants. The companies filed suit, arguing that the ordinance was “unconstitutional” because of interference with “freely negotiated contracts between platforms and restaurants.”

Smart phone mapping while in car

‘Doesn’t Match The Needs Of Workers’: Industry Group Raises Alarm Over Biden Rule Cracking Down On Independent Contractors

Flex Association Blasts New Labor Department Rule

California

Uber

President Joe Biden’s Labor Department announced a proposed rule change on Tuesday that could discourage <a href="https://www.dailywire.com/topic/jobs">independent contracting</a>, a work arrangement upon which millions of Americans rely.
The <a href="https://public-inspection.federalregister.gov/2022-21454.pdf">new rule</a>, which will undergo a public comment period slated to begin Thursday and conclude in November, would prompt regulators to consider whether independent contractors are “economically dependent” on their employers or are truly conducting business for themselves. The Labor Department asserted that individuals in the former category may be more easily cheated by the companies for which they work.
“While independent contractors have an important role in our economy, we have seen in many cases that employers misclassify their employees as independent contractors, particularly among our nation’s most vulnerable workers,” Secretary of Labor Marty Walsh said in a <a href="https://www.dol.gov/newsroom/releases/WHD/WHD20221011-0">statement</a>. “Misclassification deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages.”
Due to a variety of labor standard laws, hiring an employee is between 25% and 40% more expensive than base salary, according to an <a href="https://web.mit.edu/e-club/hadzima/pdf/how-much-does-an-employee-cost.pdf">analysis</a> from the Massachusetts Institute of Technology. Roughly 16% of Americans have participated in gig economy and independent contracting work such as delivering groceries, cleaning homes, or delivering packages, according to a <a href="https://www.pewresearch.org/internet/2021/12/08/the-state-of-gig-work-in-2021/">survey</a> from Pew Research, which found that young Americans and those with low incomes are most likely to earn money through a gig platform.
The new federal rules drew comparisons to California’s Assembly Bill 5, which claims that workers are often “exploited” through their classification as independent contractors. The law <a href="https://www.dailywire.com/news/california-tells-truckers-blockading-port-over-harsh-labor-law-to-comply-and-move-forward">went into effect</a> earlier this year after an extensive series of court battles, inducing protests from owner-operator truckers and a subsequent rebuke from the state government to “move forward” and “comply with the law.”
The rule change also comes nearly two years after Democratic lawmakers introduced the Protecting the Right to Organize Act, also known as the PRO Act, which would likewise <a href="https://www.dailywire.com/news/the-democrats-pro-act-three-things-you-need-to-know">narrow the definition</a> of an independent contractor and expand access to unionization. The bill passed the House of Representatives last year but is unlikely to garner enough support in the Senate to overcome the filibuster.
Opponents of such proposals argue that the reclassification of independent contractors limits economic opportunity, especially for students, stay-at-home mothers, and other individuals whose circumstances render full-time employment difficult. Americans For Prosperity Vice President Akash Chougule remarked in a <a href="https://americansforprosperity.org/restricting-flexible-work-opportunities-is-a-bad-idea-coming-at-the-worst-possible-time/">statement</a> that the federal proposal is “yet another attempt ahead of the midterm elections to benefit the administration’s political allies at the expense of everyday Americans.”
The proposed labor rule comes shortly after the White House announced a policy that would <a href="https://www.dailywire.com/news/breaking-biden-announces-details-of-student-loan-cancellation-plan">cancel</a> $10,000 in student debt for millions of borrowers, as well as $20,000 for students who attended college via Pell Grant. Among other lawsuits, the Pacific Legal Foundation filed a <a href="https://www.dailywire.com/news/flagrantly-illegal-lawsuit-hits-biden-over-student-debt-cancellation">complaint</a> noting that the Department of Education failed to comply with the mandatory “notice-and-comment process” when charting the debt cancellation policy.
“Congress did not authorize the executive branch to unilaterally cancel student debt,” Pacific Legal Foundation attorney Caleb Kruckenberg said in a <a href="https://pacificlegal.org/press-release/lawsuit-filed-to-stop-biden-administrations-unlawful-student-loan-cancellation/">statement</a>. “It’s flagrantly illegal for the executive branch to create a $500 billion program by press release, and without statutory authority or even the basic notice and comment procedure for new regulations.”

Biden Labor Department Announces New Rule To Crack Down On Freelancing

Biden Labor Department Pushes To Restrict Freelancing

Biden Administration

Labor Unions

Americans report receiving <a href="http://dailywire.com/topic/jobs" target="_blank" rel="noopener">wage</a> increases that fail to keep pace with record <a href="http://dailywire.com/topic/inflation" target="_blank" rel="noopener">inflation</a>, according to a Wednesday survey from Bankrate.
Price levels between August 2021 and August 2022 rose 8.3%, according to <a href="https://www.bls.gov/news.release/cpi.nr0.htm">data</a> from the Bureau of Labor Statistics. The reading <a href="https://www.dailywire.com/news/august-inflation-report-shows-several-nasty-surprises-biden-claims-victory-anyway">marked a decline</a> from the 8.5% rate seen in July 2022 and the 9.1% rate seen in June 2022, although core inflation — which factors out food and energy prices — continued to increase.
The <a href="https://www.bankrate.com/personal-finance/pay-raise-survey-september-2022/">poll</a> from Bankrate found that 48% of American workers enjoyed a pay raise in the past year while 21% found a higher-paying job, including 8% who received both. Meanwhile, 39% of workers received neither — the lowest level in any prior iteration of the survey.
Inflation nevertheless appears to be outpacing earnings. Only 39% of respondents who received a raise or a better-paying job reported income that allowed them to adequately cope with rising consumer prices. A scant 33% of overall workers reported that their income has either exceeded or kept pace with inflation over the past year.
“Inflation that has run at the highest levels in more than four decades has stripped buying power away from households of all walks of life,” Bankrate chief financial analyst Greg McBride remarked. “Even half of those receiving a pay raise, getting a promotion, or taking on new responsibilities said that higher pay falls short of the increase in household expenses.”
Although nominal wages have continued to rise between August 2021 and August 2022, real average hourly earnings — which consider the impact of inflation — decreased 2.8% over the same period, according to another <a href="https://www.bls.gov/news.release/realer.htm">report</a> from the Bureau of Labor Statistics. A decrease in the average workweek of 0.6% implied a 3.4% overall decline in real average weekly earnings.
Disregarding the negative aspects of the most recent inflation data, President Joe Biden claimed victory on Tuesday with respect to the “essentially flat” prices.
“It will take more time and resolve to bring inflation down, which is why we passed the Inflation Reduction Act to lower the cost of healthcare, prescription drugs and energy,” he said in a <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2022/09/13/statement-of-president-joe-biden-on-consumer-price-index-in-september/">statement</a>. “And my economic plan is showing that, as we bring prices down, we are creating good paying jobs and bringing manufacturing back to America.”
Former Treasury Secretary and National Economic Council Director Lawrence Summers, however, <a href="https://www.dailywire.com/news/a-serious-inflation-problem-top-obama-economist-sounds-the-alarm-over-prices-as-white-house-celebrates">warned</a> that the nation still has a “serious inflation problem.” The economist noted on social media that “core inflation is higher this month than for the quarter, higher this quarter than last quarter, higher this half of the year than the previous one, and higher last year than the previous one.”
Joblessness has <a href="https://www.dailywire.com/news/unemployment-rate-edges-upward-for-the-first-time-in-months-as-more-americans-return-to-work">remained low</a> amid the falling wages and has been considered a bright spot in an otherwise troubled economy. The unemployment rate increased to 3.7% in August 2022 even as more Americans returned to work.
However, labor force participation rates have continued to lag over the past two years — worsening a <a href="https://www.dailywire.com/news/americans-continue-to-opt-out-of-the-workforce">decades-long trend</a> of low engagement in the job market. The metric dropped from 63.4% in February 2020 to 60.2% in April 2020 alone amid government lockdowns and business closures, according to <a href="https://fred.stlouisfed.org/series/CIVPART">data</a> from the Bureau of Labor Statistics. As of August 2022, labor force participation had climbed to 62.4%.

Shopping cart view in supermarket. Supermarket aisle trolley view

Americans Are Getting Raises That Fail To Keep Up With Record Inflation

Americans Report Higher Wages Undone By Soaring Inflation

Inflation

The <a href="http://dailywire.com/topic/unemployment" target="_blank" rel="noopener">unemployment</a> rate increased to 3.7% in August 2022 even as more Americans returned to work, according to a Friday <a href="https://www.bls.gov/news.release/empsit.nr0.htm">release</a> from the Bureau of Labor Statistics.
Total nonfarm payroll employment rose by 315,000, with notable job gains occurring in the professional services, health care, and retail trade sectors. However, the labor force participation rate — the share of working-age adults who are holding jobs or attempting to find one — increased by 0.3%, indicating that more Americans are now seeking opportunities. Unemployment had remained equivalent to or below 3.6% since March 2022.
“It’s noteworthy how we got to a higher unemployment rate. There was a significant increase in the number of individuals working and looking for work,” Bankrate Senior Economic Analyst Mark Hamrick said in a statement provided to The Daily Wire. “This is fresh confirmation of a lack of sufficient supply of workers.”
Indeed, labor force participation has continued to lag over the past two years — worsening a <a href="https://www.dailywire.com/news/americans-continue-to-opt-out-of-the-workforce">decades-long trend</a> of low engagement in the job market. The metric dropped from 63.4% in February 2020 to 60.2% in April 2020 alone amid government lockdowns and business closures, according to <a href="https://fred.stlouisfed.org/series/CIVPART">data</a> from the Bureau of Labor Statistics. As of August 2022, labor force participation climbed to 62.4%.
Policymakers at the Federal Reserve are tasked with maintaining low unemployment and stable inflation rates. The entrance of more Americans into the labor force amid millions of preexisting job openings could signal more aggressive rate hikes from the central bank.
“The Federal Reserve looks at the August jobs numbers, along with the recently reported number of job openings topping 11 million versus 6 million unemployed, and regards the labor market as still hot, even if the unemployment rate has now edged up from the recent low,” Hamrick continued.
Federal Reserve Chair Jerome Powell <a href="https://www.dailywire.com/news/jerome-powell-vows-to-restore-price-stability-even-though-federal-reserve-must-first-bring-some-pain">vowed</a> last week that policymakers remain committed to a 2% inflation rate, which had been largely maintained over the past three decades. Officials <a href="https://www.dailywire.com/news/federal-reserve-hikes-interest-rates-again-to-combat-bidenflation">announced</a> interest rate hikes of 0.75% twice in the past two months.
“Price stability is the responsibility of the Federal Reserve and serves as the bedrock of our economy,” Powell said in a speech delivered at the central bank’s annual symposium in Jackson Hole, Wyoming. “Without price stability, the economy does not work for anyone. In particular, without price stability, we will not achieve a sustained period of strong labor market conditions that benefit all. The burdens of high inflation fall heaviest on those who are least able to bear them.”
The low unemployment rate has been a bright spot in an economy beleaguered by inflationary pressures and supply chain issues — although the lack of available labor has worsened both phenomena. Beyond <a href="https://www.dailywire.com/news/retail-giants-toggle-business-strategies-in-response-to-high-inflation">adjusting to changes</a> in customer behavior as wealthy households seek bargains, major retailers have also <a href="https://www.dailywire.com/news/major-retailer-will-lay-off-20-of-staff-close-150-stores">passed the cost</a> of higher wages onto consumers.
However, companies in technology and other sectors have <a href="https://www.dailywire.com/news/recession-fears-lead-big-tech-companies-to-pause-hiring-cut-jobs">slowed hiring</a> or introduced layoffs. The United States met the rule-of-thumb definition of a recession — two consecutive quarters of negative growth — last month as the economy <a href="https://www.dailywire.com/news/united-states-economy-shrinks-in-the-first-part-of-2022">shrank</a> at a 1.5% annualized rate in the first quarter and <a href="https://www.dailywire.com/news/u-s-in-a-recession-after-second-straight-quarter-of-negative-growth">contracted</a> at a 0.6% pace in the second quarter.

US-HEALTH-VIRUS-ECONOMY-JOBS

Unemployment Rate Edges Upward For The First Time In Months As More Americans Return To Work

Unemployment Increases Along With Labor Force Participation

As <a href="https://www.dailywire.com/topic/michigan">Michigan</a> enters a hotly contested election cycle, Democratic Governor <a href="https://www.dailywire.com/topic/gretchen-whitmer">Gretchen Whitmer</a> continues to boast about her state welcoming 25,000 new auto <a href="https://www.dailywire.com/topic/jobs">jobs</a> since she took office, but reality tells a different story about auto jobs under Whitmer’s watch.
In a <a href="https://www.michigan.gov/whitmer/news/press-releases/2022/08/17/whitmer-statement-on-monthly-jobs-report">statement</a> released by the governor’s office last week, Whitmer commented on her state’s monthly jobs report and claimed that since she took office in January 2019, “Michigan has announced 25,000 good-paying auto jobs, including 10,000 in 2022 alone.”
It’s not the first time the governor has touted 25,000 auto jobs flooding the state’s economy. In early June, she <a href="https://twitter.com/gretchenwhitmer/status/1532396916570570753">tweeted</a>, “I&#8217;m thrilled about @Ford&#8217;s $2 billion investment to create 3,200 good-paying auto jobs — add this to the nearly 25,000 auto jobs we&#8217;ve created! I will keep working with anyone to lead Michigan into a future of mobility and electrification.”
Less than a week later, Whitmer again <a href="https://twitter.com/GovWhitmer/status/1534634239618125831">touted</a> massive auto job growth. “Since I took office, Michigan has added more than 25,000 auto jobs. Thanks to @Ford’s recent investment, we’re adding another 3,000,” she said.
But there’s one problem: those 25,000 new jobs Whitmer repeatedly highlights don’t seem to exist.
Whitmer’s “25,000 new auto jobs” claims led to a fact check from Detroit Free Press reporter Clara Hendrickson, who rated Whitmer’s tweets as “<a href="https://www.politifact.com/factchecks/2022/jul/01/gretchen-whitmer/whitmer-touts-growth-auto-industry-jobs-data-doesn/">mostly false</a>.” Hendrickson pointed out that employment data does not back up Whitmer’s claims, and that thousands of the 25,000 auto jobs Whitmer is said to have created “do not currently exist.”
What’s more, Michigan is actually down a net total of 1,700 auto jobs since Whitmer took office in 2019, <a href="https://data.bls.gov/timeseries/SMU26000003133630001">according</a> to figures from the U.S. Bureau of Labor Statistics (BLS). Numbers from BLS also show that the state lost 5,000 auto jobs in July, dropping 3,700 in vehicle manufacturing and 1,300 in motor vehicle parts manufacturing.
As Whitmer faces a re-election test coming up in November, her campaign <a href="https://gretchenwhitmer.com/accomplishments/">website</a> echoes the same false statement as one of her greatest accomplishments. The website states that Whitmer has “Created nearly 25,000 auto jobs as part of the biggest manufacturing boom in years, ensuring the future of auto manufacturing will be made in Michigan, by Michigan workers.”
The Whitmer campaign and governor’s office have not responded to requests from The Daily Wire to answer why they continue to trumpet a figure that’s been proven to be false.
The governor’s Republican opponent <a href="https://www.dailywire.com/news/tudor-dixon-wins-michigan-republican-gubernatorial-nomination-will-face-gretchen-whitmer">Tudor Dixon</a> harshly criticized Whitmer’s leadership on auto manufacturing. “We’ve lost over 120,000 jobs under Gretchen Whitmer’s watch, including a net loss of 6,000 auto jobs,” Dixon said in a statement to The Daily Wire. “Michigan put the world on wheels and now Whitmer’s disastrous leadership is driving the auto companies to roll right out of Michigan.”
Auto manufacturing news hasn’t gotten better for Whitmer, who is clearly seeking to boost her economic reputation before she faces Michigan voters in November. After she celebrated Ford reportedly investing more money in the state in June, the motor company <a href="https://www.freep.com/story/money/cars/ford/2022/08/22/ford-cuts-salaried-jobs-michigan/7865641001/?gnt-cfr=1">announced</a> 3,000 job cuts in early August, saying a “significant” percentage of those cuts would be Michigan jobs.
“Gretchen Whitmer continues to lie about the creation of jobs in Michigan but the reality is she’s lost more jobs than she’s created,” Michigan GOP Deputy Chief of Staff and Communications Director Gustavo Portela told The Daily Wire. “It’s not just about the jobs she’s failed to create, it’s the fact that she routinely lies to Michiganders about fixing the roads, about keeping people safe or about wanting to deliver for Michiganders.”

Gretchen Whitmer

Gretchen Whitmer Continues To Brag About Creating 25,000 Auto Jobs – But That’s Not True

2022 Election

Michigan

Sen. Mike Rounds (R-SD) said that while the July jobs report showed strong job growth, those numbers could be a &#8220;precursor&#8221; to &#8220;serious economic issues coming very shortly.&#8221;
Appearing on ABC&#8217;s &#8220;This Week with George Stephanopoulos&#8221; on Sunday, Rounds said that while the job figures were high, they masked the fact that soaring inflation meant payrolls are declining in value, so companies are still hiring.
&#8220;You talked about the possibility of a recession, we just saw that jobs report on Friday, 528,000 new jobs in July, 3.5% unemployment, that’s 50-year low,&#8221; host Stephanopoulos began.
&#8220;There are two parts that we want to remember,&#8221; Rounds <a href="https://abcnews.go.com/ThisWeek/video/sen-mike-rounds-88061623">responded</a>. &#8220;First of all, we know that our GDP has gone down the last two quarters, so let’s all recognize that’s accepted by everybody, that is down.&#8221;
&#8220;The second part is that, while we’re very happy to see the job growth, positive thing, remember that back in the 1970s, and moving into the 1980s, we actually saw job growth, because unless your wages are keeping up with inflation, payrolls actually go down in value. And so what you’re actually seeing, we believe, might be a precursor of what&#8217;s to come.&#8221;
&#8220;You&#8217;re gonna find out larger companies such as Walmart are starting to talk about to reduce the number of people they&#8217;re gonna be employing,&#8221; Rounds continued. &#8220;But in the meantime, if your wages&#8211; if you can save on wages because, as inflation goes up, the value of wages is not as great as it was, unless it&#8217;s also going up at the same or greater rate– well then, you can afford to have people stay on the payroll, and your payroll actually goes down compared to the products you’re producing or that you’re buying and moving through the market.&#8221;
&#8220;So while this is good and we want to see job growth, I don’t think we can necessarily say that this is not a precursor yet to probably some more serious economic issues coming very shortly,&#8221; he added. &#8220;We hope we’re building our way out of a recession but you don’t do that by raising taxes. You do it by promoting and expanding businesses, getting the economy rolling again.&#8221;
The economy added 528,000 jobs in July, as The Daily Wire <a href="https://www.dailywire.com/news/u-s-july-jobs-report-528000-added-unemployment-down-to-3-5">reported</a> Friday, pushing the unemployment rate down to 3.5%. But that number may not be an accurate measure of the strength of the economy, experts noted. “The gain of 528K #jobs in July as the labor force participation rate fell to 62.1, means that most of the new jobs went to people who already had jobs,” economist <a href="https://twitter.com/PeterSchiff/status/1555541334374731776?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1555541334374731776%7Ctwgr%5E67687a57aef49e925cb2d18126e753ced1a5fbab%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fwww.dailywire.com%2Fnews%2Fu-s-july-jobs-report-528000-added-unemployment-down-to-3-5">Peter Schiff</a> tweeted.
“Collapsing real wages force many workers to moonlight to pay the bills. If the labor market were strong one job would be enough,” he added.

Mike Rounds

GOP Senator: Jobs Report Could Be A ‘Precursor’ Of ‘Serious Economic Issues Coming Very Shortly’

GOP Senator: Jobs Report Could Be A 'Precursor' Of 'Serious Economic Issues Coming Very Shortly'

Republican

This Week

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