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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Kimble Charting Solutions

Is the US Dollar About To Break Out Higher?

Courtesy of Chris Kimble

The US Dollar Index is flexing its muscle of late.

Trade wars and fear of a global slowdown have capital fleeing to King Dollar.

King dollar breakout test in play?

Looking at today’s chart, you can see that the Dollar has been consolidating in a range for the past year – see shaded area on chart (1).

Now King Dollar is attempting to break out over the topside of that range at (2). That area represents dual resistance, as it also represents the 61.8 Fibonacci retracement level.

What it does here could highly impact the financial ...



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Zero Hedge

South Korea Scraps Intelligence Pact With Japan Amid Rising Trade Tensions

Courtesy of ZeroHedge View original post here.

Most Americans could be forgiven for thinking that the 'trade war' is really only impacting the US and (maybe) China. After all, it was President Trump's belligerent rhetoric about holding China accountable that helped him win in 2016 in the first place. But what is less known, is that Trump's angry trade rhetoric aggravated a bunch of other longstanding trade spats, most notably, the now-emergent trade spat between Japan and South Korea, which is threatening to seriously disrupt trade throughout the Pacific Rim region.

...



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Phil's Favorites

Do Good Traders Make Good Gamblers?

Courtesy of Technical Traders

Without breaking the rules, have you ever made a trade that was guaranteed to make you money? A trade that was literally guaranteed to succeed.

If you’re struggling to come up with an answer, we’ll give you a helping hand, the word you’re searching for is likely no. Every financial trade ever made – no matter how sound and well researched using technical analysis – carries with it an element of risk.

Outside factors beyond your control always have the possibility of turning profits into losses and ecstasy into agony. In many ways, trading is similar to gambling. For instance, you may think you know ...



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The Technical Traders

Do Good Traders Make Good Gamblers?

Courtesy of Technical Traders

Without breaking the rules, have you ever made a trade that was guaranteed to make you money? A trade that was literally guaranteed to succeed.

If you’re struggling to come up with an answer, we’ll give you a helping hand, the word you’re searching for is likely no. Every financial trade ever made – no matter how sound and well researched using technical analysis – carries with it an element of risk.

Outside factors beyond your control always have the possibility of turning profits into losses and ecstasy into agony. In many ways, trading is similar to gambling. For instance, you may think you know ...



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Insider Scoop

Earnings Scheduled For August 22, 2019

Courtesy of Benzinga

Companies Reporting Before The Bell
  • Hormel Foods Corporation (NYSE: HRL) is estimated to report quarterly earnings at $0.36 per share on revenue of $2.29 billion.
  • BJ's Wholesale Club Holdings, Inc. (NYSE: BJ) is projected to report quarterly earnings at $0.37 per share on revenue of $3.38 billion.
  • DICK'S Sporting Good...


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Chart School

Gold Gann Angle Update

Courtesy of Read the Ticker

Everything awesome? Gold over $1500. Central banks are printing money to generate fake demand. Germany issues first ever 30 year bond with negative interest rate. Crazy times!

Even Australia and New Zealand and considering negative interest rates and printing money, you know a bunch of lowly populated islands in the South Pacific with no aircraft carriers or nuclear weapons. They will need to do this to suppress their currency as they are export nations, as they need foreign currency to pay for foreign loans. But what is next, maybe Fiji will start printing their dollar. 

Now for a laugh, this Jason Pollock sold for more than $32M in 2012. 





Ok, now call Dan...

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Lee's Free Thinking

Watch Out Bears! Fed POMO Is Back!

Courtesy of Lee Adler

That’s right. The Fed is doing POMO again.  POMO means Permanent Open Market Operations. It’s a fancy way of saying that the Fed is buying Treasuries, pumping money into the financial markets.

Over the past 6 days, the Fed has bought $8.6 billion in T-bills and coupons. These are the first regular Fed POMO Treasury operations since the Fed ended outright QE in 2014.

Who is the Fed buying those Treasuries from?

The Primary Dealers. Who are the Primary Dealers?  I’ll let the New York Fed tell you:

Primary dealers are trading counterparties of the New York Fed in its implementation of monetary policy. They are also expected to make markets for the New York Fed on behalf of its official accountholders as needed, and to bid on a ...



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Digital Currencies

New Zealand Becomes 1st Country To Legalize Payment Of Salaries In Crypto

Courtesy of ZeroHedge View original post here.

Bitcoin and other cryptocurrencies have been on a persistent upswing this year, but they're still pretty volatile. But during a time when even some of the most developed economies in the word are watching their currencies bounce around like the Argentine peso (just take a look at a six-month chart for GBPUSD), New Zealand has decided to take the plunge and become the first country to legalize payment in bitcoin, the FT reports.

The ruling by New Zealand’s tax authority allows salaries and wages to b...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Biotech

DNA testing companies offer telomere testing - but what does it tell you about aging and disease risk?

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

 

DNA testing companies offer telomere testing – but what does it tell you about aging and disease risk?

A telomere age test kit from Telomere Diagnostics Inc. and saliva. collection kit from 23andMe. Anna Hoychuk/Shutterstock.com

Courtesy of Patricia Opresko, University of Pittsburgh and Elise Fouquerel, ...



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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:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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