More stories

  • in

    Report Helps Answer the Question: Is a College Degree Worth the Cost?

    The analysis found that former students at most colleges had an annual income higher than high school graduates a decade after enrollment.Most people go to college to improve their financial prospects, though there are other benefits to attending a postsecondary institution. But as the average cost of a four-year degree has risen to six figures, even at public universities, it can be hard to know if the money is well spent.A new analysis by HEA Group, a research and consulting firm focused on college access and success, may help answer the question for students and their families. The study compares the median earnings of former college students, 10 years after they enrolled, with basic income benchmarks.The analysis found that a majority of colleges exceed minimum economic measures for their graduates, like having a typical annual income that is more than that of a high school graduate with no higher education ($32,000, per federal Scorecard data).Still, more than 1,000 schools fell short of that threshold, though many of them were for-profit colleges concentrating in short-term credentials rather than traditional four-year degrees.Seeing whether a college’s former students are earning “reasonable” incomes, said Michael Itzkowitz, HEA Group’s founder and president, can help people weigh whether they want to cross some institutions off their list. Someone deciding between similar colleges, for example, can see the institution that has produced students with significantly higher incomes.While income isn’t necessarily the only criteria to consider when comparing schools, Mr. Itzkowitz said, “it’s a very good starting point.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Starbucks and Union Agree to Work Out Framework for Contract Talks

    In an initial move, the coffeehouse chain said Workers United members would get improved benefits that other employees received in 2022.Starbucks and the union that represents employees in roughly 400 of its U.S. stores announced Tuesday that they were beginning discussions on a “foundational framework” that would help the company reach labor agreements with unionized workers and resolve litigation between the two sides.The union greeted the development as a major shift in strategy for Starbucks, which has taken steps to resist union organizing at the company since the campaign began in 2021, moves that federal labor regulators have said violated labor law hundreds of times.Starbucks, which has denied the accusations, said in a statement that it hoped to have contracts negotiated and ratified by the end of the year and would agree to a “fair process for organizing” — something the union has demanded for years. It said that, as a gesture of good faith, it was providing unionized workers with benefits it introduced in 2022 but withheld from union stores, like an option for customers to tip via credit card.Representatives of both Starbucks and the union, Workers United, said that while details must be worked out, they hoped to be back at the bargaining table in the coming weeks. Negotiations between the two sides had largely lapsed over the past several months.Workers who have helped lead the organizing said the development had surprised them. “It still feels pretty surreal right now,” said Michelle Eisen, a longtime barista at a Starbucks in Buffalo that was the first company-owned store to unionize during the current campaign. “There has not been a single call I’ve been on today where either I wasn’t crying or everyone else wasn’t crying.”If a framework is agreed to and quickly leads to contracts, experts said, it could be a major development in labor relations in corporate America, where companies like Amazon and Apple have resisted union organizing to varying degrees.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    The Jobs Conundrum: Questions About Wages Persist

    The latest data on jobs and wages are positive on the surface, but a large group of voters are still downbeat about the state of the economy. Jobs seem plentiful, but a large group of voters are feeling downbeat about inflation and the economy.Spencer Platt/Getty Images‘The job’s not quite done’ The U.S. economy is a paradox. Official figures show that growth is solid, jobs are plentiful and wages are climbing, and yet voters are mostly feeling down and giving President Biden little credit.Friday’s jobs data is adding to that split-screen view, with economists pointing out red flags in an otherwise sterling report.The labor market seems to be performing strongly. Employers added 353,000 jobs last month, almost double economists’ forecasts, and an additional 100,000 via revisions in previous months. Average hourly wages rose, too.But that doesn’t necessarily mean workers are more prosperous. For a start, wintry weather shrank the average workweek to 34.1 hours in January. In particular, nonsalaried employees, especially those in retail, construction and the hospitality sectors, worked fewer hours, which probably ate into their pay, Bill Adams, an economist at Comerica Bank, said in a research note.And Goldman Sachs’s wage tracker for U.S. workers fell after Friday’s report on a quarterly annualized basis.Workers are increasingly anxious about changing jobs. Quit rates have fallen to a four-year low, suggesting employees are feeling less confident that they’ll find a better position elsewhere. If this trend persists, it could also put the chill on wage gains that soared during the so-called Great Resignation.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Our Economy Isn’t ‘Goldilocks.’ It’s Better.

    “Let’s be honest, this is a good economy.”So declared Jerome Powell, the chair of the Federal Reserve, in his news conference on Wednesday after the Fed’s latest policy meeting. He’s right, even if the public isn’t fully convinced (although the gap between economic perceptions and reality seems to be narrowing). In fact, Powell is clearly wrestling with a dilemma many countries wish they had: What’s the right monetary policy when the news is good on just about all fronts?Contrary to what you may have heard, this is not a “Goldilocks economy” — get your children’s stories right, folks! Goldilocks found a bowl of porridge that was neither too hot nor too cold. We have an economy that is both piping hot (in terms of growth and job creation) and refreshingly cool (in terms of inflation).Hence the Fed’s dilemma. It increased interest rates in an attempt to reduce inflation, even though this risked causing a recession. Now that inflation has plunged, should it quickly reverse those rate hikes, or should rates remain high because we have not, in fact, had a recession (yet)?I believe that the risk of an economic slowdown is much higher than that of resurgent inflation and that rate cuts should come sooner rather than later. But that’s not the kind of argument that’s going to be settled on the opinion pages. What I want to talk about, instead, is what the good economic news says about policy and politics.Before I get there, a quick summary of the good news that has come in just in the past few weeks.First, inflation. For both historical and technical reasons, the Fed aims for 2 percent inflation; over the past six months, its preferred price measure has risen at an annual rate of … 2 percent. “Core” inflation, which excludes volatile food and energy prices, has been running slightly below target.The Fed also looks at wage growth, not because workers have caused inflation, but because wages are usually the stickiest part of inflation and therefore an indicator of whether disinflation is sustainable. Well, on Wednesday, the Employment Cost Index came in below expectations and is now more or less consistent with the Fed’s target. On Thursday we learned that productivity has been rising rapidly, so unit labor costs are easily consistent with low inflation.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Walmart Offers Store Managers Company Stock to Make Them Feel Like ‘Owners’

    The retailer has been raising wages for store associates. It’s now turning its attention to improving salaries and benefits for their bosses.Walmart, the nation’s largest private employer, is raising salaries and benefits for store managers as it looks for ways to retain them.Walmart said on Monday that managers of its U.S. stores would be eligible for grants of up to $20,000 in company stock every year. The stock will vest over a three-year period, with a percentage vested each quarter.The announcement came a few weeks after Walmart said it would increase the average salary for store managers to $128,000, up from $117,000. The big-box retailer also said bonuses for store managers could reach up to 200 percent of base salary, with a store’s profitability becoming a bigger factor in the calculation.Store managers are crucial in driving sales and profitability within their stores and keeping morale high in a dynamic business. The managers are also seen as an important pipeline for leadership at the company.A store manager at a Walmart Supercenter oversees hundreds of associates who work across a variety of departments, including food, apparel, pharmacies and auto centers. These stores often attract scores of shoppers and bring in millions of dollars in sales each year. At the start of the Covid pandemic, store managers were given even more responsibilities as the company adapted to changing consumer behavior, including managing e-commerce capabilities like in-store pickup for online orders and navigating goods that are out of stock as well as excess inventory.“It’s fair to say that we’re asking them to act like owners and to think like owners,” John Furner, the chief executive of Walmart U.S. who was previously a manager at a company store, said in a briefing with reporters. We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More

  • in

    Economists Predicted a Recession. So Far They’ve Been Wrong.

    A widely predicted recession never showed up. Now, economists are assessing what the unexpected resilience tells us about the future.The recession America was expecting never showed up.Many economists spent early 2023 predicting a painful downturn, a view so widely held that some commentators started to treat it as a given. Inflation had spiked to the highest level in decades, and a range of forecasters thought that it would take a drop in demand and a prolonged jump in unemployment to wrestle it down.Instead, the economy grew 3.1 percent last year, up from less than 1 percent in 2022 and faster than the average for the five years leading up to the pandemic. Inflation has retreated substantially. Unemployment remains at historic lows and consumers continue to spend even with Federal Reserve interest rates at a 22-year high.The divide between doomsday predictions and the heyday reality is forcing a reckoning on Wall Street and in academia. Why did economists get so much wrong, and what can policymakers learn from those mistakes as they try to anticipate what might come next?It’s early days to draw firm conclusions. The economy could still slow down as two years of Fed rate increases start to add up. But what is clear is that old models of how growth and inflation relate did not serve as accurate guides. Bad luck drove more of the initial burst of inflation than some economists appreciated. Good luck helped to lower it again, and other surprises have hit along the way.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More

  • in

    German Rail Workers Strike Over Pay and Hours

    The walkout, one of the most significant to hit the country’s train service in years, is expected to affect long-distance and commuter travel nationwide.Passenger train drivers in Germany walked off the job on Wednesday and vowed not to return for six days in a strike over working conditions and pay that is expected to halt most long-distance and commuter rail travel across the country.The strike, one of the most significant on the national rail service in years, was announced on Monday by Claus Weselsky, the chairman of the G.D.L., a union that represents German train drivers. Mr. Weselsky, in a terse news conference, said that negotiations with rail bosses had broken down and accused the chief negotiator of the national rail company, Deutsche Bahn, of “trickery and deception,” especially with regard to the latest offer.The rail strike, the fourth in two months, comes amid a risk of reduced funding for the rail system after a court decision that stopped the government from repurposing money from a coronavirus pandemic fund for green projects. It also comes amid a trend of worsening performance of German trains. More broadly, there is general dissatisfaction with the administration of Chancellor Olaf Scholz, which is plagued by infighting and seen by some as being removed from the problems facing regular Germans.This time, the walkout is scheduled to run through the weekend and will therefore affect more leisure travelers than the recent previous strikes, which have taken place during the week and lasted no longer than three days. Drivers of cargo trains started the strike on Tuesday evening.About 7.3 million people ride trains in Germany operated by Deutsche Bahn every day, and the number is growing as more travelers switch to rail amid concerns about climate change. Deutsche Bahn trains also move roughly 600,000 tonnes of freight each day, according to federal data.Deutsche Bahn tried to obtain an emergency injunction before a three-day walkout this month, but a court in Frankfurt found that the union had the right to strike. The company said on Monday that it would not go back to the courts to try to force employees back to work.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More

  • in

    The Great Disconnect: Why Voters Feel One Way About the Economy but Act Differently

    Americans are angry and anxious, and not just about prices, which may be driving economic sentiment more than their financial situations, economists said.By traditional measures, the economy is strong. Inflation has slowed significantly. Wages are increasing. Unemployment is near a half-century low. Job satisfaction is up.Yet Americans don’t necessarily see it that way. In the recent New York Times/Siena College poll of voters in six swing states, eight in 10 said the economy was fair or poor. Just 2 percent said it was excellent. Majorities of every group of Americans — across gender, race, age, education, geography, income and party — had an unfavorable view.To make the disconnect even more confusing, people are not acting the way they do when they believe the economy is bad. They are spending, vacationing and job-switching the way they do when they believe it’s good.Americans Are Spending More, but Consumer Optimism Is Down More