Tag: Jobs

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Amazon’s AI Pivot Triggers Historic Layoffs Amid AI Productivity Drive

Amazon cutting workers to introduce more AI

Amazon has reportedly announced its largest corporate restructuring to date, with plans to lay off up to 30,000 white-collar employees.

This represents nearly 10% of its global office workforce—as it accelerates its transition toward artificial intelligence and automation-led operations.

The move, confirmed on 28th October 2025, marks a dramatic shift in the tech giant’s internal priorities.

CEO Andy Jassy has framed the layoffs as part of a broader effort to streamline management. The company appears to want to eliminate bureaucratic inefficiencies and reallocate resources toward AI infrastructure.

‘We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs’, Jassy is reported as saying.

Affected departments span human resources, logistics, customer service, and Amazon Web Services (AWS). Many roles are deemed redundant due to AI integration.

Heavy investment

The company has been investing heavily in machine learning systems. These are capable of handling tasks ranging from inventory forecasting to customer support. This approach has prompted the reevaluation of traditional staffing models.

While Amazon employs over 1.5 million people globally, the layoffs target its 350,000 corporate staff, signalling a significant recalibration of its white-collar operations.

It was reported that the job cuts were delivered via email, underscoring the impersonal nature of the transition.

The timing of the announcement—just ahead of the holiday season—has raised eyebrows across the industry.

Analysts suggest Amazon is betting on AI to offset seasonal labour demands and long-term cost pressures. However, this risks reputational fallout and internal morale issues.

Structural challenges

Critics argue that the scale of the layoffs reflects deeper structural challenges, including overhiring during the pandemic and a growing reliance on technology to solve human-centred problems.

Others see it as a bellwether for the wider tech sector, where AI is increasingly viewed as both a productivity boon and a disruptive force.

As Amazon reshapes its workforce for an AI-driven future, questions remain about the social and ethical implications of such rapid automation.

For now, the company appears resolute: leaner, faster, and more algorithmically efficient—even if it means leaving tens of thousands behind in the process.

But, AI is also creating job opportunities in other areas.

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Bleak news from U.S. doesn’t seem that bad for stocks – what’s going on?

Bleak Headlines vs. Market Optimism

It’s one of those classic Wall Street paradoxes—where bad news somehow fuels bullish momentum. What’s going on?

News round-up

S&P 500 closes above 6,700 after rising 0.34%. Samsung and SK Hynix join OpenAI’s Stargate. Taiwan rejects U.S. proposal to split chip production. Trump-linked crypto firm plans expansion. Some stocks that doubled in the third quarter.

Bleak Headlines vs. Market Optimism

U.S. Government Shutdown: The federal government ground to a halt, but markets didn’t flinch. In fact, the S&P 500 rose 0.34% and closed above 6,700 for the first time.

ADP Jobs Miss: Private payrolls fell by 32,000 in September 2025, a sharp miss – at least compared to the expected 45,000 gain. Yet traders shrugged it off as other bad news is shrugged off too!

Fed Rate Cut Hopes: Weak data often fuels expectations that the Federal Reserve will cut interest rates. Traders are now betting on a possible cut in October 2025, which tends to boost equities.

Historical Pattern: According to Bank of America, the S&P 500 typically rises ~1% in the week before and after a government shutdown. So, this isn’t unprecedented—it’s almost ritualistic at this point.

Why the Market’s Mood Diverges

Animal Spirits: Investors often trade on sentiment and positioning, not just fundamentals. If they believe the Fed will ease policy, they’ll buy risk assets—even in the face of grim news.

Data Gaps: With the Bureau of Labor Statistics’ official jobs report delayed due to the shutdown, the ADP report gains more weight. But it’s historically less reliable, so traders may discount it.

Tech Tailwinds: AI stocks and semiconductor news (e.g., Samsung and SK Hynix joining OpenAI’s Stargate) are buoying sentiment, especially in Asia-Pacific markets.

U.S. Government Shutdown October 2025

Prediction

Traders in prediction markets are betting the shutdown will last around two weeks. Nothing too radical, since that’s the average length it takes for the government to reopen, based on data going back to 1990.

The government stoppage isn’t putting the brakes on the stock market momentum. Are investors getting too adventurous?

History shows the pattern is not new. The S&P 500 has risen an average of 1% the week before and after a shutdown, according to data from BofA.

Even the ADP jobs report, which missed expectations by a wide margin, did little to subdue the animal spirits.

Private payrolls declined by 32,000 in September 2025, according to ADP, compared with a 45,000 increase reportedly estimated by a survey of economists.

Payroll data

The Bureau of Labor Statistics’ (BLS) official nonfarm payrolls report is now stuck in bureaucratic purgatory and likely not being released on time.

The U.S. Federal Reserve might place additional weight on the ADP report — though it’s not always moved in sync with the BLS numbers. Traders expect weak data would prompt the Fed to cut interest rates in October 2025.

It’s a bit like watching a storm roll in while the crowd cheers for sunshine—markets are forward-looking, and sometimes they see silver linings where others see clouds.

Summary

EventDetail
🏛️ Government ShutdownBegan Oct 1, 2025. Traders expect ~2 weeks based on historical average
📉 ADP Jobs ReportPrivate payrolls fell by 32,000 vs. expected +45,000
📈 S&P 500 CloseRose 0.34% to close above 6,700 for the first time
💸 Fed Rate Cut ExpectationsTraders now pricing in a possible October cut
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AI In, Jobs Out: The Great Hiring Slowdown

AI jobs

Has BIG tech and AI stopped hiring? Not quite, though the hiring landscape has definitely shifted gears. Here’s the current take…

🧠 AI Hiring: Still Hot, Just More Focused

  • Private AI firms like OpenAI, Anthropic, and Perplexity are still hiring aggressively, especially for Machine Learning Engineers and Enterprise Sales roles. These two categories alone account for thousands of openings.
  • Even legacy tech giants like Salesforce are scaling up AI-focused sales teams—Marc Benioff announced 2,000 new hires just to sell AI solutions.
  • The demand for ML Engineers has splintered into niche specializations like LLM fine-tuning, inference optimisation, and RAG infrastructure, showing how deep the rabbit hole goes.

🖥️ Big Tech: Cooling, Not Collapsing

  • Across the U.S., software engineering roles dropped from 170,000 in March to under 150,000 by July.
  • AI job postings fell from 80,000 in February to just over 50,000 in June, though July showed a slight rebound.
  • Despite the slowdown, AI still makes up 11–15% of all software roles, suggesting it’s a strategic priority even as overall hiring cools.

🌍 Beyond Silicon Valley

  • States like South Dakota and Connecticut are seeing surprising growth in AI job postings—South Dakota reportedly jumped 164% last month.
  • The hiring boom is expanding into non-traditional industries, not just Big Tech. Think biotech, retail, and even energy sectors integrating AI.

So while the hiring frenzy of 2023 has mellowed, AI talent remains a hot commodity—just more targeted and strategic.

The general reporting across August 2025 paints a clear picture of slower, more cautious hiring, especially in tech and AI-adjacent roles.

🧊 Hiring Has Cooled—Especially for AI-Exposed Roles

  • In the UK, tech and finance job listings fell 38%, nearly double the broader market decline.
  • Entry-level roles and those involving repetitive tasks (like document review or meeting summarisation) are increasingly at risk of automation.
  • Even in sectors with strong business performance, such as IT and professional services, job opportunities have continued to shrink.

🧠 AI’s Paradox: High Usage, Low Maturity

  • McKinsey reportedly says that while 80% of large firms use AI, only 1% say their efforts are mature, and just 20% report enterprise-level earnings impact.
  • Most AI deployments are still horizontal (chatbots, copilots), while vertical use cases (full process automation) remain stuck in pilot mode.
Infographic of AI effect on jobs and hiring

📉 Broader Market Signals

  • Job adverts have dropped most for occupations most exposed to AI, especially among young graduates.
  • Despite a slight uptick in hiring intentions in June and July, the overall labour market shows a marked cooling.

So yes, the general tone is one of strategic hesitation—companies are integrating AI but not rushing to hire unless the role is future-proofed.

AI In, Jobs Out: The Great Hiring Slowdown

It’s official: the AI revolution has arrived—but the job listings didn’t get the memo.

Across the UK and U.S., tech hiring has slowed to a cautious crawl. Once-bustling boards now resemble digital ghost towns, especially for roles most exposed to automation.

Software engineering vacancies dropped by over 20% in just four months, while AI-related postings—once the darlings of 2023—have cooled from 80,000 to barely 50,000.

The irony? AI adoption is booming. Over 80% of large firms now deploy some form of artificial intelligence, from chatbots to copilots.

Yet only 1% claim their efforts are ‘mature’, and fewer still report meaningful earnings impact. It’s a paradox: widespread usage, minimal payoff, and a hiring freeze to match.

Even in sectors with strong performance—IT, finance, professional services—the job market is shrinking. Graduates face a particularly frosty reception, as entry-level roles vanish into the algorithmic ether.

Meanwhile, AI firms themselves are hiring with surgical precision: machine learning engineers and enterprise sales reps remain in demand, but the days of blanket recruitment are over.

Geographically, the hiring map is shifting too. South Dakota saw a 164% spike in AI job postings last month, while London and San Francisco quietly tightened their belts.

So, AI isn’t killing jobs—it’s reshaping them. The new roles demand fluency in automation, compliance, and creative problem-solving.

The rest? They’re being quietly retired.

For now, the job market belongs to the adaptable, the analytical, and the algorithmically literate.

Everyone else may need to reboot, eventually, but not quite just yet.

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UK jobs market slows as unemployment rises

UK labour market

The UK jobs market continued to lose momentum, with fresh data from the Office for National Statistics highlighting a notable slowdown.

Unemployment has climbed to 4.7%, reaching its highest level in four years, while job vacancies fell for a third consecutive year to 727,000—the lowest in a decade, excluding the pandemic dip.

Pay growth also eased, with average annual wage increases slowing to 5% in the March–May 2025 period.

Economists suggest the Bank of England may consider an interest rate cut next month to support employment, although rising inflation remains a complicating factor.

Firms appear hesitant to hire or replace staff, signalling broader economic uncertainty. While the ONS has urged caution around the collection of unemployment data, the trend points to mounting pressure in the UK’s jobs landscape.

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U.S. economy added just 12,000 jobs in October 2024

U.S. workers

In October 2024, non-farm payrolls saw an increase of 12,000, a significant drop from September’s figures and falling short of the 100,000 predicted

The unemployment rate remained steady at 4.1%, meeting expectations.

The rate of job growth in October 2024 was the slowest since the end of 2020, hindered by the effects of storms in the and a considerable labour standoff (strike action), which impacted the overall employment picture.

According to the Bureau of Labor Statistics‘ Friday report, the modest increase in nonfarm payrolls for October, which was already anticipated to be subdued, marked the smallest rise since December 2020.

U.S. monthly job creation

U.S. monthly job creation
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U.S. non-farm payrolls surged by 254,000 in September 2024

U.S. non-farm payroll data

In September 2024, the U.S. economy saw a significant increase in job additions, substantially surpassing expectations and contributing to a robust employment landscape as the unemployment rate declined, according to the U.S. Labor Department’s report issues Friday 4th October 2024.

U.S. Non-farm payroll numbers rose by 254,000 in September 2024, a jump from the revised figure of 159,000 in August and exceeding the forecast of 150,000.

The unemployment rate dropped to 4.1%, a decrease of 0.1 percentage point, while the household employment survey reported a substantial increase of 430,000 jobs.

Average hourly earnings grew by 0.4% for the month and saw a 4% rise compared to the previous year, outpacing the projected estimates.

U.S. Bureau of Labor Statistics

U.S. Bureau of Labor Statistics
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U.S. consumer confidence falls the most in three years

U.S. consumer

In September 2024, consumer sentiment plummeted, marking the most significant drop in over three years, driven by escalating concerns over employment and business conditions, according to a report by the Conference Board released on Tuesday 24th September 2024.

The consumer confidence index reportedly fell to 98.7 from 105.6 in August 2024, marking the largest one-month drop since August 2021. This was contrary to the forecast of 104 and a stark contrast to the 132.6 reading in February 2020, just before the Covid pandemic’s onset.

All five components surveyed by the organisation declined this month, with the most significant decrease observed in the age bracket of 35-54 with incomes under $50,000.

Concerning

“Consumer evaluations of the present business conditions have turned negative, and the outlook on the current labour market has further weakened. There is also a growing pessimism about future labour market conditions, business conditions, and income prospects,” the Conference Board’s chief economist reportedly commented.

This significant dip in the confidence index last occurred as inflation began its ascent to the highest point in over four decades.

Following the announcement, stocks experienced temporary declines, and Treasury yields decreased.

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U.S. jobs data revision creates economic concern and political argument

U.S> jobs data revision

Job growth in the US last year was weaker than previously believed, according to a statement from the Labor Department on Wednesday 21st August 2024.

This revelation has intensified the ongoing debate regarding the health of the U.S. economy. The department’s updated figures indicate that there were approximately 818,000 fewer jobs added over the 12 months leading up to March than initially estimated.

This preliminary revision suggests a 30% decrease in the total number of jobs created during that period, marking the most significant adjustment since 2009.

The revised data points to an average monthly job increase of about 174,000, a reduction from the previously estimated 240,000.

Downward revisions affected most sectors, including information, media, technology, retail, manufacturing, and the broad category of professional and business services.

Analysis by Oxford Economics noted that this indicates the job growth for the period relied more heavily on government and education/healthcare sectors than previously understood.

Despite the revisions, hiring remained robust, albeit not at levels sufficient to match the growth of the working-age population.

The U.S. Labor Department issues monthly job creation estimates based on employer surveys and regularly updates these figures as more data becomes available, with an annual reset at the beginning of each year.

The report from Wednesday offered a glimpse into this process, incorporating data from county-level unemployment insurance tax records. This year’s revision is notably larger than those of previous years.

The Biden administration has highlighted strong job growth as evidence that its policies have positioned the U.S. as the world’s leading economy post-pandemic.

However, Republicans have used the latest figures to contend that the Democrats have misled the public about the economic situation. The Republican Party took to social media to announce: “BREAKING: 818,000 jobs that the Biden-Harris administration claimed to have ‘created’ do not actually exist.”

Over the past year, the U.S. has consistently reported robust job growth, defying both economists’ expectations and public sentiment. These gains have been particularly surprising given the highest borrowing costs in a generation, which typically hinder economic growth.

The recent revisions have lent weight to the argument that the labour market is less stable than previously thought, as highlighted by the Republican response.

Analysts believe these new figures will reinforce the case for the U.S. Federal Reserve to lower interest rates at its upcoming September 2024 meeting, a move that is widely anticipated to prevent further weakening of the job market.

These revisions have not caused widespread concern

Despite earlier economic anxieties this month, financial markets have largely absorbed the latest data without significant turmoil.

But that doesn’t mean there will be zero fallout – turmoil may follow. The data believed to be correct is incorrect – so, can we believe the data? Are there cracks appearing in the U.S labour market?

This data helped the U.S. economy – but it wasn’t right?

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S&P 500 enjoys its best day since 2022 after market rout just 4 days before

Stock chart S&P 500

Stocks rose on Thursday 8th August 2024 as the latest U.S. employment data bolstered investor confidence in the economy, following a significant market downturn earlier in the week.

The S&P 500 increased by 2.3%, closing at 5319.31, marking its best day since November 2022. The Dow Jones Industrial Average jumped by 683.04 points to 39446.49.

S&P 500 5-day chart as of 8th August 2024

S&P 500 5-day chart as of 8th August 2024

The Nasdaq Composite climbed to 16660.02. And all these gains just 4 days after the market rout on Monday 5th August 2024.

The most recent weekly unemployment claims were lower than expected, easing some of the recent worries about the U.S. labour market.

The initial claims for unemployment benefits last week were 233,000, a decrease of 17,000 from the previous week.

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U.S. non-farm payroll job growth comes in at 114,000 in July 2024, much less than expected, as unemployment rate rises to 4.3%

Workers

In July 2024, U.S. job growth decelerated more than anticipated, and the unemployment rate increased slightly, according to a report from the Labor Department on Friday.

Non-farm payrolls expanded by only 114,000 for the month, a decrease from June’s downwardly revised figure of 179,000 and falling short of the Dow Jones prediction of 185,000. The unemployment rate rose to 4.3%, marking the highest level since October 2021.

Average hourly earnings, an indicator of inflation, rose by 0.2% for the month and were up 3.6% from 2023, both measures not meeting the increases of 0.3% and 3.7% expected.

Following the release of the report, stock market futures extended their losses, and Treasury yields saw a significant drop.

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S&P 500 and Nasdaq hit record highs again as job data raises chance of a Fed interest rate cut

U.S. market record highs

Markets respond positively to job data as the S&P 500 and Nasdaq break record highs, again!

S&P 500 record high

S&P 500 record high Friday 5th July 2024

Nasdaq Composite record high

Nasdaq Composite record high

Nasdaq 100 record high

Nasdaq 100 record high

U.S. non-farm payrolls increase

The U.S. economy added slightly more jobs than expected in June 2024 though the unemployment rate increased, the U.S. Labor Department reported Friday.

Non-farm payrolls increased by 206,000 for the month, better than the 200,000 Dow Jones forecast though less than the downwardly revised gain of 218,000 in May, which was cut sharply from the initial estimate of 272,000.

The unemployment rate unexpectedly rose to 4.1%, matching the peak since October 2021, presenting a conundrum for Federal Reserve officials as they consider their next steps in monetary policy. Projections had indicated that the unemployment rate would remain stable at 4%.

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U.S. job growth totalled 175000 in April 2024 – less than expected

Non-farm payroll U.S.

Non-farm payrolls rose by 175,000 in the month, falling short of the consensus estimate of 240,000.

The unemployment rate increased slightly to 3.9%, contrary to expectations that it would remain at 3.8%. Additionally, a broader measure of unemployment rose to 7.4%, marking the highest rate since November 2021.

In line with recent patterns, the health care sector led job gains with an increase of 56,000. Notable growth was also seen in social assistance (31,000), transportation and warehousing (22,000), and retail (20,000).

In response to the job data update, market traders now anticipate a strong chance of two interest rate reductions by the end of 2024.

Stock markets jumped higher on the news.

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Does the U.S. jobs boom raise doubts about rate cuts?

U.S. job creation vs inflation and interest rates

The U.S. economy is on a rip, with employers adding around 303,000 jobs in March 2024 – the largest increase in almost a year.

As the world’s largest economy continues to surge, questions arise about the Federal Reserve’s next move regarding interest rates.

Stronger-than-expected Job Growth

The unemployment rate fell to 3.8%, indicating strong job growth in several sectors such as health care, construction, and government. While economists had predicted job gains of approximately 200,000, the actual numbers have easily exceeded those expectations.

The labour market’s surprising resilience has caught analysts off guard, leading to speculation about the timing of interest rate cuts.

Fed’s Dilemma

The Federal Reserve has held interest rates in a range of 5.25%-5.5%, the highest level in over two decades. Initially, the Fed raised rates sharply in 2022 to curb inflationary pressures. However, the subsequent cooling of price inflation (down to 3.2% in February) without a significant spike in unemployment has complicated matters. The central bank now faces a delicate balancing act.

Delayed Rate Cuts?

The significant increase of 303,000 in non-farm payrolls for March 2024 reinforces the Federal Reserve’s stance that the robustness of the economy permits a gradual approach to interest rate reductions.

The Fed had been expected to initiate rate cuts this year to mitigate the impact of high borrowing costs. However, the stronger-than-anticipated economic performance suggests that rate cuts may not occur until the second half of this year.

Labour Market Dynamics

U.S. government spending in areas like high-tech manufacturing and infrastructure has bolstered the labor market. Additionally, an influx of more than three million immigrants last year has expanded the workforce, potentially keeping wage pressures in check. In March, average hourly pay rose by 4.1% year-on-year, consistent with expectations and near a three-year low.

America’s Comeback

President Joe Biden hailed the latest job figures as a “milestone in America’s comeback.” However, some market analysts argue that the strong jobs growth could complicate efforts to return inflation to the Fed’s 2% target. Some analysts even speculate that rate cuts may not materialize until 2025.

Global Implications

Higher U.S. interest rates have ripple effects worldwide, enticing investors to shift capital toward America. While the Fed’s in-tray still has some warnings, the delay in rate cuts reflects the economy’s underlying strength.

The U.S. jobs boom presents a conundrum for policymakers. Balancing economic vitality with inflation control remains a delicate task, and the Fed’s decisions will reverberate far beyond its borders.

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Big surprise U.S. jobs rise in January 2024

U.S. workers

Job creation in the U.S. surged in January 2024, as the economy continued to defy predictions of a slowdown

The U.S. economy added 353,000 jobs and average hourly pay jumped, while the unemployment rate held steady at 3.7%, the Labour Department said.

The report extended more job gains that has surprised economists, who have expected a jump in interest rates since 2022 to slow the economy. It hasn’t. No recession or slowdown in the economy so far.

Early rate cut less likely according to these figures

  • Average hourly earnings increased 0.6%. Year-on-year basis, wages jumped 4.5%, above the 4.1% forecast.
  • Non-farm payrolls expanded by 353,000 for the month, well above the 185,000 estimate. The unemployment rate held at 3.7%.
  • Job growth was widespread in January 2024. Professional and business services 74,000. Other sectors included health care 70,000 and retail trade 45,000.

Analysts now say the job market gain and strength make an early interest rate cut less likely.

The U.S. employment data delivered quite a shock, easily beating expectations, with earnings much higher than expected. Stock markets gained and are at elevated levels for the Dow, Nasdaq and the S&P 500. Record highs have been set – are the highs?

Market analysts said these numbers show the U.S. economy is strong and will change the mindsets of those expecting an early interest rate cut.

Expectations of a recession are off the table too, for now.

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U.S. payrolls increased by 216,000 in December, better than predicted

Work

The U.S. labour market accumulated strong gains as the pace of hiring was greater than expected, dampening the chance of an early rate cut.

December’s jobs report showed that 216,000 jobs were added for the month while the unemployment rate remained steady at 3.7%. Estimates were in the region of 170,000 as analysts were looking for their ‘goldilocks figure.

Job boost from U.S. government

The hiring boost came from a gain of 52,000 in government jobs and another 38,000 in health care-related occupations.

Average hourly earnings rose 0.4% on the month and were up 4.1% from the same period 2023, both higher than the respective estimates for 0.3% and 3.9%.

U.S. unemployment chart Jan 2021 – December 2023

S&P500 and Nasdaq

The S&P500 and Nasdaq recovered some early 2024 losses as the fresh data encouraged the debate and chance of a rate cut again. Later however, the strong U.S. jobs growth dampened the likelihood of rate a cut anytime soon. Yields were on the rise again.

Strong streak

Government hiring drove the gains, which extended one of the strongest streaks of job creation on record. The job growth has confounded forecasters expecting job losses as higher borrowing costs slowed the economy.

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UK pay outstrips inflation by highest amount for two years

UK pay up

Pay growth has outstripped inflation by the most since 2021, in a further sign that the pressure on living costs may be starting to ease.

Regular pay rose at an annual rate of 7.7% between July and September 2023, official figures show; higher than average inflation over the same three months.

But job vacancies fell for the 16th month in row, in a worrying sign that the jobs market is weakening. Between August and October 2023, the estimated number of vacancies in the UK fell to 957000, down 58000 – although the Office for National Statistics (ONS) said the total remains well above pre-pandemic levels.

Data Source: Office for National Statistics Data

UK pay outstrips inflation by highest amount for two years

The UK’s unemployment rate was largely unchanged between July to September 2023 at 4.2%, according to ONS data.

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Dow up 300 points Friday, 6th October 2023 as stocks reverse sharp losses

Nasdaq

Stocks rallied Friday 6th October 2023 even after the release of stronger-than-expected U.S. jobs data and an increase in Treasury yields.

The U.S. economy added 336,000 jobs in September 2023, the Labour Department said. Economists expected 170,000 jobs. 

Confused?

Stocks posted a surprise turnaround on Friday, 6th October 2023 after initially falling on a hotter-than-expected jobs report. At its session low, the Dow had fallen some 270 points, then surged by more than 400 points at in intraday trading. The Nasdaq and the S&P 500 also lost ground too only but then quickly recovered the losses.

Unclear

Traders were unclear as to the reason for the intraday reversal. Some noted it could be the softer wage number in the jobs report that made investors rethink their earlier bearish stance. Others noted the pullback in yields from the day’s highs.

Rally

The rally may just be because the market had been extremely oversold with the S&P 500 at one point in the week down more than 8% from its high earlier this year.

Yields initially surged after the report, with the 10-year Treasury rate trading near its highest level in 16 years. The benchmark rate later eased from those levels, but was still up around 6 basis points at 4.78%.

Extreme market movements maybe here for a while yet.

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U.S. jobs report September 2023

Work

The latest U.S. jobs report for September 2023 was released on Friday, October 6, 2023.

The U.S. economy added 336,000 jobs last month, much more than expected, despite the Federal Reserve’s struggle to cool the world’s largest economy. 

The unemployment rate was 3.8%, in line with August 2023. The data lifted hopes that the central bank will manage to guide the U.S. economy to a ‘soft landing’, where a recession is avoided. Bear in mind the Fed were late in dealing with the initial rise in inflation – so this battle has become harder and prolonged.

The job gains were the largest monthly rise since January 2023, and almost twice what economists had anticipated. Government and healthcare added the most jobs. The labour market still appears solid.

However, not all indicators were positive. The ADP’s national employment report showed that private-sector employers added only 89,000 jobs in September, far fewer than expected. Some factors outside the Fed’s control, such as the autoworker strike and the threat of a government shutdown, could yet damage the U.S. economy. 

The labour force participation rate also remained low at 63.2%, indicating that many workers have yet to return to the labour market since the Covid19 pandemic of 2020.

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Luddites against BIG tech’ – a modern rebellion

Luddites

What are Luddites?

Luddites were a group of workers who protested against the use of machinery that threatened their livelihoods in the early 19th century in Britain. They were not opposed to technology in general, but to the specific machines that were ‘taking away their livelihoods’.

They attacked factories and smashed machines that were replacing their jobs with cheaper and less skilled labour.

BIG tech Luddite comparison – is AI the latest threat?

Some people have compared the Luddites to the modern movements that resist the effects of Big Tech and artificial intelligence (AI) on workers’ lives. They argue that these technologies are creating a new wave of automation that is displacing workers, eroding their rights, and increasing inequality. 

They also point out that the Luddites had the support of a majority of English people and eventually led to changes in the law that improved workers’ conditions.

Progress?

However, others have criticized this comparison as inaccurate or misleading. They claim that the Luddites were not successful in stopping technological progress, and that their actions were violent and destructive. 

Technology will create new jobs

They also suggest that the Luddite fallacy, which refers to the belief that technological progress causes mass unemployment, has been proven wrong by history. They contend that technology can create new opportunities and benefits for workers, as long as society adapts and regulates it properly.

The question of whether a new modern Luddite rebellion can rise against Big Tech is not a simple one. It depends on how we define Luddites, how we evaluate the impacts of technology, and how we respond to the challenges and opportunities it presents.