More stories

  • in

    US jobs numbers drop dramatically as Covid cases soar across the country

    The recovery in the US jobs market collapsed in December, the last full month of Donald Trump’s presidency, as coronavirus infections soared across the country.The US lost 140,000 jobs in December, down from a gain of 245,000 in November, according to the Bureau of Labor Statistics (BLS). The loss ended seven months of jobs growth with the leisure and hospitality sector once again bearing the biggest losses.The unemployment rate stayed at 6.7%, close to twice as high as it was in February before Covid-19 hit the US. It is also three percentage points higher than the 4.5% rate Trump inherited from his predecessor Barack Obama.Some 372,000 jobs were lost in food services and drinking places, offsetting gains in other areas, as Covid-19 infections and deaths rose sharply across the country. “The decline in payroll employment reflects the recent increase in coronavirus (Covid-19) cases and efforts to contain the pandemic,” the BLS said.Four million Americans have been unemployed for 27 weeks or more – technically defined as long-term unemployed – accounting for 37% of those out of work. Unemployment rates for black (9.9%) and Latino (9.3%) workers remained sharply higher than for white Americans (6%).After months of wrangling Congress passed a $900bn stimulus package in December but the relief came too late for many. Joe Biden has pledged more aid for those hit by the pandemic’s economic fallout but areas like hospitality are likely to continue suffering until the virus is under control.Friday’s latest jobs report comes after months of worrying signs in the jobs market. On Thursday the labor department said another 787,000 people had filed first-time claims for jobless benefits in the week ending 2 January. The figure was slightly lower than the previous week but remained more than twice as high as pre-pandemic levels.On Wednesday ADP, the US’s largest payroll supplier, said the private sector had shed 123,000 jobs from November to December, the first decline since April 2020. Losses were primarily concentrated in retail, leisure and hospitality – all areas that suffered heavy losses in the first wave of the pandemic. On the same day minutes from the last Federal Reserve meeting showed policymakers expected the escalating number of coronavirus cases “would be particularly challenging for the labor market in coming months”.The crisis has left millions of Americans facing food shortages and homelessness as unemployment officers across the country have struggled to keep up with the huge numbers of claims.According to the Associated Press only three states, North Dakota, Rhode Island and Wyoming, have met the federal standard of getting benefit payments out to successful claimants within three weeks for 87% of applicants. More

  • in

    Sainsbury’s forced to stock rival supermarket’s products in Northern Ireland as Brexit border disruption hits supply lines

    Several Spar-branded products lines are on sale in Sainsbury’s shops under a “temporary” agreement to avoid empty shelves from 1 January.Fresh foods including ready meals, meat, dairy products and desserts are affected.A member of staff told the Belfast News Letter that about 700 product lines had been lost due to Brexit.The changes are a consequence of the new customs declarations and additional regulatory checks required on goods moving from Great Britain to Northern Ireland after the UK left the single market and customs union at 11pm on New Year’s Eve.Despite Boris Johnson’s insistence that there would be no border down the Irish Sea, firms have been left scrambling to ensure they can navigate the red tape imposed on shipments.Sainsbury’s said a “small number” of products were “temporarily unavailable for our customers in Northern Ireland while border arrangements are confirmed”. A spokesperson said: “We were prepared for this and so our customers will find a wide range of alternative products in our stores in the meantime and we are working hard to get back to our full, usual range soon.”Arlene Foster on the Irish sea borderThe supermarket giant has signed a contract with local supplier Hendersons, which produces Spar-branded lines. The Northern Ireland-based wholesaler said: “Over the last several months we have been contingency planning for Brexit to minimise any disruption to the food supply chain for our 470 stores across NI after 31st December 2020.“We can confirm that we have entered into a temporary supply agreement with J. Sainsbury supermarkets that will see both parties working together to ensure availability for our customers.”Yodel, one of the UK’s largest delivery firms has, told customers they would have to pay additional charges for shipments to Northern Ireland because of the extra bureaucracy. Another delivery company, DPD, announced before Christmas it would suspend deliveries in the country.Northern Irish economy minister Dianne Dodds has called for urgent action to be taken over the disruption of delivery of goods.She has written to Michael Gove, the Cabinet Office secretary, over concerns that retailers based in Great Britain are cutting their services to Northern Ireland because of a lack of clear guidance.The letter from Ms Dodds said: “Over the last number of weeks we have seen numerous GB-based retailers withdraw from offering deliveries to Northern Ireland due to the lack of guidance.”On regulatory issues we have seen retailers of plants, food and drink ceasing to offer products for delivery in Northern Ireland due to increased costs.“The UK government has announced three-month grace period during which online retailers in Britain will not have to make customs declarations when sending parcels valued below £135 to Northern Ireland customers.However, Ms Dodds noted is unclear what will happen when that period ends on 1 April. More

  • in

    Top US business leaders call on Congress to certify election results

    [embedded content]
    Some of America’s top business leaders called on Congress to certify the electoral results for the president-elect, Joe Biden, in a letter Monday, arguing that “attempts to thwart or delay this process run counter to the essential tenets of our democracy”.
    The letter, signed by executives at American Express, Goldman Sachs, JetBlue, Microsoft, Pfizer and others, marks the US business community’s most public effort to date to push back against Donald Trump’s continuing attempts to overturn the election result.
    Organized by the business advocacy group Partnership for New York City, the letter states: “The incoming Biden administration faces the urgent tasks of defeating Covid-19 and restoring the livelihoods of millions of Americans who have lost jobs and businesses during the pandemic.
    “Our duly elected leaders deserve the respect and bipartisan support of all Americans at a moment when we are dealing with the worst health and economic crises in modern history. There should be no further delay in the orderly transfer of power.”
    Many leaders in the business community initially embraced the Trump administration and Trump established a high powered jobs panel to revitalize the US economy. But many of those leaders quit after his apparent support for white supremacists after a fatal rally in Charlottesville, Virginia.
    Among the signatories of Monday’s letter is Jonathan Gray, the chief operating officer of Blackstone, the private equity group run by Stephen Schwarzman, one of Trump’s biggest backers. More

  • in

    Healthcare to the electoral college: seven ways 2020 left America exposed | Robert Reich

    If America learns nothing else from these dark times, here are seven lessons it should take from 2020:1 Workers keep America going, not billionairesAmerican workers have been forced to put their lives on the line to provide essential services even as their employers failed to provide adequate protective gear, hazard pay, or notice of when Covid had infected their workplaces. Meanwhile, America’s 651 billionaires – whose net worth has grown by more than $1tn since the start of the pandemic – retreated to their mansions, yachts and estates.Amazon’s chief executive, Jeff Bezos, sheltered in his 165,000-acre west Texas ranch while Amazon warehouse workers toiled in close proximity, often without adequate masks, gloves or sanitizers. The company offered but soon scrapped a $2 an hour hazard pay increase, even as Bezos’ wealth jumped by a staggering $70bn since March, putting his estimated net worth at roughly $186bn as the year came to an end.2 Systemic racism is killing Black and Latino AmericansBlack and Latino Americans account for almost 40% of coronavirus deaths so far, despite comprising less than a quarter of the population. As they’ve borne the brunt of this pandemic, they’ve been forced to fight for their humanity in another regard: taking to the streets to protest decades of unjust police killings, only to be met with more police violence.Among Native American communities, the coronavirus figures are even more horrifying. The Navajo Nation has had a higher per-capita infection rate than any state but cannot adequately care for the sick, thanks to years of federal underfunding and neglect of its healthcare system.Decades of segregated housing, pollution, lack of access to medical care, and poverty have left communities of color vulnerable to the worst of this virus, and the worst of America.3 If we can afford to bail out corporations and Wall Street, we sure as hell can afford to help peopleThe Senate majority leader, Mitch McConnell, continues to insist the nation cannot “afford” $2,000 survival checks for every American. But the latest relief legislation doled out more than $220bn to powerful business interests that could have been used for struggling working families.Another way of looking at it: the total cost of providing those $2,000 checks ($465bn) would be less than half the amount America’s 651 billionaires added to their wealth during the pandemic ($1tn).4 Healthcare must be made a rightEven before this crisis struck, an estimated 28 million Americans lacked health insurance. An additional 15 million lost employer-provided coverage because they lost their jobs. Without insurance, a hospital stay to treat Covid-19 cost as much as $73,000. Remember this the next time you hear pundits saying Medicare for All is too radical.5 Our social safety nets are woefully brokenNo other advanced nation was as unprepared for the pandemic as was the US. Our unemployment insurance system is more than 80 years old, designed for a different America. We’re one of the few countries in the world that doesn’t provide all workers some form of paid sick leave.Other industrialized nations kept unemployment rates low by guaranteeing paychecks. Americans who filed for unemployment benefits often got nothing, or received them weeks or months late. Under new legislation they get just $300 a week of extra benefits to tide them over.6 The electoral college must be abolishedJoe Biden won 7m more votes than Trump. But his winning margin in Arizona, Georgia and Wisconsin totaled just 45,000. Had Trump won those three states, he would have gained 37 electoral votes, tying Biden in the electoral college. This would have pushed the election to the House of Representatives, with each state delegation getting one vote. Even though Democrats have a majority in the House, more state delegations have Republican majorities. Trump would have been re-elected.The gap between the popular and electoral college vote continues to widen. The electoral college is an increasingly dangerous anachronism.7 Government mattersFor decades, conservatives have told us government is the problem and we should let the free market run its course. Rubbish. The coronavirus has shown yet again that the unfettered free market won’t save us. After 40 years of Reaganism, it’s never been clearer: government is in fact necessary to protect the public.It’s tragic that it took a pandemic, near-record unemployment, millions taking to the streets and a near-calamitous election for many to grasp how broken, racist and backwards our system really is. Biggest lesson of all: it must be fixed. More

  • in

    Confusion over Brexit customs rules forces retailers to suspend Northern Ireland deliveries

    Retailers including John Lewis and Dunelm have suspended deliveries to Northern Ireland due to uncertainty about red tape to be imposed because of Brexit. Despite Boris Johnson’s insistence that there would be no border down the Irish Sea, firms have been left scrambling to ensure they can navigate the customs declarations imposed on shipments from Great Britain.Hours before the transition period was due to end at 11pm on Thursday, the government announced that parcels sent to consumers in Northern Ireland from Britain would not need customs declarations during a three-month grace period ending on 31 March.The last-minute announcement left companies who had paused deliveries with little time to start up their operations again.
    A spokesperson for John Lewis said on Thursday: “We temporarily paused deliveries and collections in Northern Ireland from 30 December while we awaited further guidance on the new trading arrangements.  “We are reviewing the guidance we have received today and look forward to resuming these services as soon as possible.”  Yodel, one of the UK’s largest delivery firms, has told customers they will have to pay additional charges for shipments to Northern Ireland because of the extra bureaucracy. DPD announced before Christmas that it would suspend deliveries in the province. The courier confirmed on Thursday that its position had not changed.
    Furniture retailer Dunelm said it was working hard to start shipping to Northern Irish customers and hoped to be back up and running again by 11 January.
    Amazon is warning customers that deliveries to Northern Ireland may take longer than normal angering some customers who have paid for a monthly Prime subscription, which includes next-day delivery. Under the Northern Ireland Protocol agreed between the UK and the EU, goods arriving in Northern Ireland from Britain require three documents – an import declaration, a safety and security declaration, and a goods movement reference number.
    The requirements will now be waived until 1 April, giving companies some breathing space.
    Brexit Briefing: The end of the transition periodA government spokesperson said the three-month grace period “recognises the unique circumstances of Northern Ireland, the impacts of any disruption to parcel movements in the context of the Covid-19 pandemic and specific challenges for operators moving express consignments”.They said further details will be published in the new year, adding: “There is no reason not to continue to send such goods to Northern Ireland. There are options available for businesses and operators to continue to easily move goods from Great Britain to Northern Ireland as they do now“Some changes will go ahead on 1 January in any case. Businesses receiving goods in Northern Ireland from Great Britain valued at £135 or more will have to fill out a customs declaration within three months of receipt. Alcoholic drinks will also require a declaration.  In August the prime minister said only “over my dead body” would there be a border down the Irish Sea, underlining his earlier claim that there would be no additional paperwork when sending goods between Britain and Northern Ireland.
    The problems are the latest example of the disruption consumers and businesses face as the 1,255-page Brexit trade agreement comes into force from Friday.
    Delays are expected in Kent as hauliers adjust to the new regime with question marks over the preparedness of smaller exporters who have previously had free access to mainland Europe.Any issues are expected to be mitigated by the fact that 1 January is a bank holiday with fewer lorries making the journey across the Channel. Many companies have also built up stockpiles of goods and parts in anticipation of the transition period coming to an end. More

  • in

    Year ends on low note as 787,000 more Americans file for unemployment

    [embedded content]
    Another 787,000 Americans filed for unemployment benefits in the week before Christmas, the last snapshot of 2020’s appalling jobs market before the New Year.
    Unemployment claims have been rising again in recent weeks to their highest levels since the autumn as surging coronavirus rates have slowed hiring and led to more layoffs. At current levels the weekly claims figures are almost four times their pre-pandemic average.
    The latest weekly figure from the Department of Labor was 19,000 lower than the previous week’s 803,000 claims but the average number of claims over the last four weeks is now 836,750, more than the population of the city of Seattle.
    The national unemployment rate started the year at 3.6% in January and hit a record high of 14.7% in April as the coronavirus shut down much of the US economy. The unemployment rate has since declined dramatically, it was 6.7% in November, but the recovery has been uneven with women and black, Hispanic and young people still experiencing high levels of unemployment. The numbers of long-term unemployed are rising.
    The recent increases in weekly unemployment claims signal more trouble ahead.
    According to the Economic Policy Institute, 25.7 million workers in the US remain officially unemployed, otherwise out of work due to the pandemic, or have experienced a reduction in work hours or pay.
    After months of wrangling Congress has finally brokered a deal to extend unemployment assistance to the millions laid off during the pandemic. The $900bn Covid-19 relief bill will give those receiving unemployment benefits an extra $300 a week and extends two pandemic-specific programs used by about 14 million people. But the delay in the agreement means many across the country face delays in payments and more hardship.
    Fernando Comas of Secaucus, New Jersey, worked as a video engineer in the entertainment industry before the pandemic and has been furloughed since March until at least 2021.
    Six weeks ago, his benefits were exhausted. He has been unable to receive answers from his state unemployment agency to try to resolve the issue.
    “I have a family to feed, a mortgage to pay, a car payment, and I’m a single father of two small girls who rely on me to provide for them,” said Comas, who cannot afford to find other work because his family’s health coverage is still being covered by his employer. “I’m going to lose everything, probably going to be evicted and will start to go to the food banks for food for my family.” More

  • in

    The three most misused phrases in US politics in 2020 | Jeffrey Frankel

    Donald Trump and the Covid-19 pandemic dominated the news headlines in 2020. Three terms in particular came to symbolise the year: “witch-hunt,” “black swan” and “exponential”.Trump has tweeted the phrase “witch-hunt” approximately once every three days on average during his presidency and not only in connection with his impeachment trial. He continued to use it later in the year to describe accusations that he mismanaged America’s Covid-19 response, inquiries into his tax returns, an investigation into alleged criminal conduct at the Trump Organization and other controversies.Most people made their minds up long ago about whether Trump was guilty of his alleged transgressions. But neither his supporters nor his critics have given full thought to the linguistic implications of the term “witch-hunt”. Perhaps it doesn’t mean what they think it does.The original witch-hunts began in early modern Europe and spread to colonial America, in the religious persecution of those accused of practising witchcraft. In Europe, an estimated 40,000-60,000 people – mainly women – were executed between 1400 and 1782. Americans usually think of the 1692-93 witch trials in Salem, Massachusetts, in which 30 people were convicted and 19 hanged.The term entered widespread use only in the mid-20th century, to describe the frenzied search for communists “under the bed”. Arthur Miller’s 1953 play about the Salem trials, The Crucible, was an allegory for US senator Joseph McCarthy’s hearings into alleged communist infiltration of the US government.To be sure, the 17th-century witch trials and McCarthyism differed in important ways. For one thing, communists really existed. But the two historical episodes had one thing in common that distinguishes them from the accusations against Trump. In a genuine witch-hunt, the hunters start from the firm belief that a particular type of evil-doer – witches or communists – is hiding in plain sight, and then try to identify who they are.When the president and his many supporters accuse his detractors of carrying out a witch-hunt, they are making a different claim. They are claiming that Trump’s critics start from the unwavering belief that he is up to no good, and see it as their job to find crimes to pin on him. They have identified him, and they are out to get him one way or another. “Persecution” or “harassment” would more accurately convey Trump’s meaning.Such distinctions are crucial. When federal authorities charged the gangster Al Capone with tax evasion in 1931, it was not a witch-hunt. The target of their investigation was determined first; then the charges that could put him away were identified – an application of the rule of law.The second phrase that pervaded 2020 was “black swan”. When the new coronavirus spread beyond China and suddenly affected the health and jobs of people around the world, many described it as a quintessential “black swan” event.Nassim Nicholas Taleb’s eponymous 2007 book turned black swan virtually into a household expression, because it appeared to describe the 2007-09 financial crisis so well. Taleb defined the term to mean a major event that nobody realised was even a possibility, because they had never seen one of its kind before. But the metaphor is more insightful than that.The historical importance of the notion of a black swan lies in British philosophy. Like most Britons, David Hume (writing in the 18th century) and John Stuart Mill (writing in the 19th century) had never seen one. Reasoning by induction, they might easily have concluded that all swans were white. But, as British ornithologists were aware, Dutch explorers had discovered black swans in Australia in 1697. So, the best way to use the black swan metaphor is to point out that competent experts can and do factor in data from other decades, centuries and countries, and that competent policymakers should listen to their warnings.Contrary to the widespread belief in US financial markets before 2007, housing prices can go down as well as up. Similarly, health experts and well-informed policymakers had been well aware before 2020 that a pandemic like Covid-19 was not only possible, but likely to strike sooner or later. In too many countries, however, political leaders failed to heed the warnings and recommendations. The world has paid dearly for their mistake.So, this year’s Covid-19 pandemic was indeed a black swan. But the phrase is perhaps best defined not just as a sudden major development that catches the general public by surprise, but as a “tail event” – known by scientific experts and responsible officials to be a dangerous possibility (albeit one with relatively low probability in any given year).Finally, the word “exponential” was used frequently in common speech even before the pandemic – and almost always incorrectly, to mean “rapid”. Of course, anyone wishing to play language police must confront the argument made by Humpty Dumpty in Lewis Carroll’s Through the Looking-Glass, who insisted that, “When I use a word, it means just what I choose it to mean.”But linguistic precision is often important for achieving intellectual precision. Exponential is a mathematical term. It does not mean rapid. Hard as this may be to believe, there is not even a correlation or association between exponential and high growth rates. The money that one has in the bank changes exponentially, due to compound interest, but the rate can be low or even negative, as European interest rates demonstrate.With the arrival of Covid-19, people finally began to use the word “exponential” correctly, to describe the number of infections. The reason why the number of cases rises exponentially is that each infected person infects a number of other people. Epidemiologists call this average ratio the rate of reproduction, represented by R. It is designated R0 in a population with no immunity and no countermeasures.The use of R has drawbacks, particularly the difficulty of estimating it. But the concept makes an important point. If R is greater than one, as it was in the early stages of the pandemic and presumably has become again in many places, it means that things are getting worse.R can be brought down via wearing face masks, social distancing, frequent hand-washing, testing, isolation, and now inoculation with the new Covid-19 vaccines. When R falls below one, it means that the pandemic is dying out, and that the rate of exponential growth is negative.So, here’s wishing everyone no witches to hunt, the swans they expect and an R well below one in 2021.• Jeffrey Frankel is a professor at Harvard University’s John F Kennedy School of Government. He served as a member of President Bill Clinton’s Council of Economic Advisers© Project Syndicate More

  • in

    Blueprint for Biden? How a struggling Irish town gambled on its links to JFK

    New Ross reinvented itself as a shrine to the Kennedy clan. Can towns linked to Biden, the most Irish American president since JFK, do the same?After its factories died and its port withered, New Ross, a town perched by the River Barrow in south-east Ireland, decided in the 1990s to tap a unique asset: John F Kennedy.The US president’s great-grandfather had sailed from the quays of New Ross to America during the 1840s famine, leaving behind a modest homestead that JFK twice visited, including a few months before his assassination in 1963. Like many Americans, not least the current US president-elect, Joe Biden, Kennedy was proud of his Irish connections and keen to re-emphasise the links. Continue reading… More