Posts Tagged ‘union workers’

Jobs Decrease by 54,000, Rise by 60,000 Excluding Census; Unemployment Rises Slightly to 9.6%; A Look Beneath the Surface

Jobs Decrease by 54,000, Rise by 60,000 Excluding Census; Unemployment Rises Slightly to 9.6%; A Look Beneath the Surface

Courtesy of Mish 

This morning the BLS reported a decrease of 64,000 jobs. However, that reflects a decrease of 114,000 temporary census workers.

Excluding the census effect, government lost 7,000 jobs. Were the trend to continue, this would be a good thing because Firing Public Union Workers Creates Real Jobs.

Unfortunately, politicians and Keynesian clown economists will not see it that way. Indeed there is a $26 billion bill giving money to the states to keep bureaucrats employed. This is unfortunate because we need to shed government jobs.

Birth-Death Model

Hidden beneath the surface the BLS Black Box – Birth Death Model added 115,000 jobs, a number likely to be revised lower in coming years. Please note you cannot directly subtract the number from the total because of the way the BLS computes its overall number.

Participation Rate Effects

The civilian labor force participation rate (64.7 percent) and the employment-population ratio (58.5 percent) were essentially unchanged from last month’s report. However, these measures have declined by 0.5 percentage points and 0.3 points, respectively, since April.

The drop in participation rate this year is the only reason the unemployment rate is not over 10%. The drop in participation rates is not that surprising because some of the long-term unemployed stopped looking jobs, or opted for retirement.

Nonetheless, I still do not think the top in the unemployment rate is in and expect it may rise substantially later this year as the recovery heads into a coma and states are forced to cut back workers unless Congress does substantially more to support states.

Employment and Recessions

Calculated Risk has a great chart showing the effects of census hiring as well as the extremely weak hiring in this recovery.

click on chart for sharper image

The dotted lines tell the real story about how pathetic a jobs recovery this has been. Bear in mind it has taken $trillions in stimulus to produce this.

June, July Revisions

The change in total nonfarm payroll employment for June was revised from -221,000 to -175,000, and the change for July was revised from -131,000 to -54,000.

Those revisions look good but it is important to note where the revisions comes from. The loss of government jobs in June was revised from…
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Deflationary Wage Pressures Hit Canada; Attitudes and Wal-Mart, the 800-Pound Gorillas

Deflationary Wage Pressures Hit Canada; Attitudes and Wal-Mart, the 800-Pound Gorillas

Courtesy of Mish

A consortium of 30,000 union workers at Canadian food stores have gone on strike over company demands to reduce wages by as much as 25% and reduce pension benefits as well.

For their part, grocers want to remain competitive with Wal-Mart, the 800-pound retail gorilla. Who has the upper hand and why?

Please consider Ontario Loblaw workers approve strike mandate amid stalled contract talks.

Loblaw Co. workers in Ontario have overwhelmingly voted to give their union a strike mandate if Canada’s largest grocery chain doesn’t back down from concession demands that it says are necessary to remain competitive against its non-unionized rivals.

Over 97 per cent of members of the United Food and Commercial Workers union, which represents nearly 30,000 employees at stores under names such as Loblaws, Zehrs, Real Canadian Superstores and Fortinos, have voted in favour of a strike.

Loblaw says it must modify some of its existing agreements in order to stay competitive, as earnings have declined about five per cent from where they were five years ago.

Workers are frustrated over company proposals that would cut wages by up to 25 per cent, increase waiting times for benefits eligibility and reduce full-time jobs. Workers at those stores make between the minimum wage of $10.25 and $25 an hour, plus benefits.

But Loblaw says that it must increase efficiency to take on a growing number of non-unionized competitors, like U.S.-based retail giant Wal-Mart, which has been ramping up its focus on low-cost groceries.

"We are striving to reach an agreement that would enable the company to continue to meet the demands of today’s highly competitive retail landscape," Julija Hunter, the company’s vice-president of public relations, said in an emailed statement.

"In many contracts we pay 10 per cent more than competitors and have 15 per cent less flexibility. That’s a real competitive disadvantage. That’s not sustainable," Hunter said.

Attitudes and the 800-Pound Deflationary Gorilla

Like it or not, and the unions and Wal-Mart haters won’t, there is only one reasonable way of looking at this….

Loblaws, Zehrs, Real Canadian Superstores and Fortinos need to be competitive to stay in business. If they fail to stay in business, every job at everyone of those stores will be lost or reorganized in a bankruptcy process. Accrued pensions may blow up in…
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Living Wages, Sheep, and Grocery Store Strikes

Living Wages, Sheep, and Grocery Store Strikes

strikeCourtesy of Mish 

Let’s play a game of Q&A. The time to go on strike is:

1: Company profits are soaring and competition for hiring by employers is strong
2: Company profits are sinking, corporate taxes are rising, competition for jobs by employees is going through the roof

This may seem like a no-brainer, but not if you have the mind of some union workers.

Inquiring minds note Strike looming for employees at Fry’s, Safeway stores.

About 20,000 Fry’s and Safeway grocery workers in Arizona could walk off the job at 6 p.m. next Friday if the companies and the workers’ union fail to reach a contract deal by the deadline.

If a deal is not reached, it would be the first general Arizona grocery strike in decades.

The union representing the workers delivered its ultimatum to the companies Thursday after no progress was made in this week’s round of negotiations. In a note to members, the president of United Food & Commercial Local 99, Jim McLaughlin, said a strike against one or more of the companies now appears likely.

While the two sides remain at odds over numerous salary and benefit issues, the main stumbling block is health care. The companies traditionally have picked up the tab for their employees’ health insurance and now want them to shoulder more of the cost. That proposal has been unacceptable to the union and its members.

"With the recent negotiating sessions, it became clear their goal is to force us into a position of a strike," McLaughlin said. "We have been clear to the employers as to what an acceptable offer is. They know what it is, but they have refused to cooperate."

Safeway spokeswoman Cathy Kloos said it was a shame the union has put the parties on a collision course over health-care costs similar to or less than what many other workers already pay.

"Most working Americans would consider $5 a week for individual health coverage and $15 a week to cover an entire family a bargain, " she said.

The workers would be entitled to about $150 per week in strike pay should they walk out.

Colorado Unions Join The Insanity

The previous article was in reference to Arizona.

Colorado wants a piece of the action as well. Please consider


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Phil's Favorites

Ukrainians are divided over Trump's 'quid pro quo'

 

Ukrainians are divided over Trump's 'quid pro quo'

Ukrainians don’t agree on how their president should have handled Trump’s request. Andreas Wolochow/Shutterstock.com

Erik C. Nisbet, The Ohio State University and Olga Kamenchuk, The Ohio State University

As Americans turn their attention to the first p...



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Zero Hedge

Watch Live: Trump Talks Trade At Economic Club Of New York

Courtesy of ZeroHedge View original post here.

Update: President Trump's scheduled speech started a few minutes late, some of his prepared remarks have already hit the tape.

  • TRUMP TO SAY AMERICAN MARKET IS MOST COVETED ON THE GLOBE
  • TRUMP: THOSE WHO WANT ACCESS TO AMERICAN MARKET MUST OBEY RULES
  • TRUMP SAYS FED FAR TOO SLOW IN CUTTING RATES
  • TRUMP SAYS FED PUTS U.S. AT DISADVANTAGE VS OTHER COUNTRIES

And a quote...

"The American Market is the most valuable and coveted market on the globe - tho...



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The Technical Traders

Welcome to the Zombie-land Of Investing - Part II

Courtesy of Technical Traders

In Part I of this research post, we highlight how the ES and Gold reacted 24+ months prior to the 2007-08 market peak and subsequent collapse in 2008-09.  The point we were trying to push out to our followers was that the current US stock market indexes are acting in a very similar formation within a very mature uptrend cycle.

We ended Part I with this chart, below, comparing 2006-08 with 2018-19.  Our intent was to highlight the new price hig...



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Kimble Charting Solutions

Bank Breakout Of Financial Crisis Highs or Double Topping Again?

Courtesy of Chris Kimble

If the saying “So Goes The Banks, So Goes The Broad Market” is true, banks are facing a critical breakout/resistance test in my opinion.

This chart looks at Financials ETF (XLF) over the past 12-years. This chart reflects that a double top took place prior to the financial crisis getting started.

XLF has remained inside of rising channel (1) since the lows in 2012. It hit double resistance at (2), then it declined nearly 25%.

The decline then tested rising support at (3) and a strong rally has followed. The rally now has XL...



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Insider Scoop

Barrington Downgrades Fluent After Earnings Miss, Stock Drop

Courtesy of Benzinga

Fluent Inc (NASDAQ: FLNT) fell short of top- and bottom-line third-quarter estimates. Some suspect the missed metrics herald longer-term underperformance.

The Rating

Barrington Research analysts James Goss and Patrick Sholl downgraded Fluent to Market Perform but maintained a $5 price target....



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Digital Currencies

3 Reasons Why One Trader Didn't "Manipulate" Bitcoin Price To $20K

Courtesy of ZeroHedge View original post here.

Authored by William Suberg via CoinTelegraph.com,

Bitcoin price highs in 2017 were not the result of a single trader on an exchange, the CEO of payment company Circle claims. In a series of tweets on Nov. 4, Jeremy Allaire disputed ...



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Chart School

Gold Gann and Cycle Review

Courtesy of Read the Ticker

Gold has performed well, golden skies are here again. In fact it has been a straight line move, and this is typically unusual and a pause can be expected.

It seems the markets are happy again, new highs in the SP500, US 10 year interest rates look to re bound, negative interest may soften. The US FED has reversed their QT and now doing $250BN (not QE) repo. The main point is the FED has stopped QT, and will do QE forever. The evidence now is the FED put is under market risk and the possibility of excessive losses do not exist. 

Point: If in future if there is market risk, the FED will print it's way out of it.
Subject To: In this blog view. The above is so until the amount required rocks confidence in the US dollar as a reserve currency.&n...



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Lee's Free Thinking

Today's Fed POMO TOMO FOMC Alphabet Soup Unspin

Courtesy of Lee Adler

But make no mistake, if the Fed wants money rates to stay down by another quarter, it will need to imagineer even more money.

That’s on top of the $281 billion it has already imagineered into existence since addressing its “one-off” repo market emergency on September 17. This came via  “Temporary” Repo Man Operations money, and $70.6 billion in Permanent Open Market Operations (POMO) money.

By my calculations that averages out to $7.4 billion per business day. That works out to a monthly pace of $155 billion or so.

If they keep this up, it will be more than enough to absorb every penny of new Treasury supply. That supply had caused the system to run out of money in mid September.  This flood of paper had been inundati...



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Biotech

The Big Pharma Takeover of Medical Cannabis

Reminder: We are available to chat with Members, comments are found below each post.

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

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