The second day of the U.K. AI summit featured a one-on-one talk between Prime Minister Rishi Sunak and Elon Musk, who discussed the future of the job market, China and AI as a “magic genie.”
Jobs

The largest American banks have been quietly laying off workers all year — and some of the deepest cuts are yet to come.
Even as the economy has surprised forecasters with its resilience, lenders have cut headcount or announced plans to do so, with the key exception being JPMorgan Chase, the biggest and most profitable U.S. bank.
Pressured by the impact of higher interest rates on the mortgage business, Wall Street deal-making and funding costs, the next five largest U.S. banks have cut a combined 20,000 positions so far this year, according to company filings.
The moves come after a two-year hiring boom during the Covid pandemic, fueled by a surge in Wall Street activity. That subsided after the Federal Reserve began raising interest rates last year to cool an overheated economy, and banks found themselves suddenly overstaffed for an environment in which fewer consumers sought out mortgages and fewer corporations issued debt or bought competitors.
“Banks are cutting costs where they can because things are really uncertain next year,” Chris Marinac, research director at Janney Montgomery Scott, said in a phone interview.
Job losses in the financial industry could pressure the broader U.S. labor market in 2024. Faced with rising defaults on corporate and consumer loans, lenders are poised to make deeper cuts next year, said Marinac.
“They need to find levers to keep earnings from falling further and to free up money for provisions as more loans go bad,” he said. “By the time we roll into January, you’ll hear a lot of companies talking about this.”
Deepest cuts
Banks disclose total headcount numbers every quarter. While the aggregate figures mask the hiring and firing going on beneath the surface, they are informative.
The deepest reductions have been at Wells Fargo and Goldman Sachs, institutions that are wrestling with revenue declines in key businesses. They each have cut roughly 5% of their workforce so far this year.
At Wells Fargo, job cuts came after the bank announced a strategic shift away from the mortgage business in January. And even though the bank cut 50,000 employees in the past three years as part of CEO Charlie Scharf’s cost-cutting plan, the firm isn’t done shrinking headcount, executives said Friday.
There are “very few parts of the company” that will be spared from cuts, said CFO Mike Santomassimo.
“We still have additional opportunities to reduce headcount,” he told analysts. “Attrition has remained low, which will likely result in additional severance expense for actions in 2024.”
Goldman firings
Meanwhile, after several rounds of cuts in the past year, Goldman executives said that they had “right-sized” the bank and don’t expect another mass layoff like the one enacted in January.
But headcount is still headed down at the New York-based bank. Last year, Goldman brought back annual performance reviews where people deemed low performers are cut. In the coming weeks, the bank will terminate around 1% or 2% of its employees, according to a person with knowledge of the plans.
Headcount will also drift lower because of Goldman’s pivot away from consumer finance; the firm agreed to sell two businesses in deals that will close in coming months, a wealth management unit and fintech lender GreenSky.
Pedestrians walk along Wall Street near the New York Stock Exchange in New York.
Michael Nagle | Bloomberg | Getty Images
A key factor driving the cuts is that job-hopping in finance slowed drastically from earlier years, leaving banks with more people than they expected.
“Attrition has been remarkably low, and that’s something that we’ve just got to work through,” Morgan Stanley CEO James Gorman said Wednesday. The bank has cut about 2% of its workforce this year amid a protracted slowdown in investment banking activity.
The aggregate figures obscure the hiring that banks are still doing. While headcount at Bank of America dipped 1.9% this year, the firm has hired 12,000 people so far, indicating that an even greater amount of people left their jobs.
Citigroup’s cuts
While Citigroup‘s staff figures have been stable at 240,000 this year, there are significant changes afoot, CFO Mark Mason told analysts last week. The bank has already identified 7,000 job cuts linked to $600 million in “repositioning charges” disclosed so far this year.
CEO Jane Fraser’s latest plan to overhaul the bank’s corporate structure, as well as sales of overseas retail operations, will further lower headcount in coming quarters, executives said.
“As we continue to progress in those divestitures … we’ll see those heads come down,” Mason said.
Meanwhile, JPMorgan has been the industry’s outlier. The bank grew headcount by 5.1% this year as it expanded its branch network, invested aggressively in technology and acquired the failed regional lender First Republic, which added about 5,000 positions.
Even after its hiring spree, JPMorgan has more than 10,000 open positions, the company said.
But the bank appears to be the exception to the rule. Led by CEO Jamie Dimon since 2006, JPMorgan has best navigated the surging interest rate environment of the past year, managing to attract deposits and grow revenue while smaller rivals struggled. It’s the only one of the Big Six lenders whose shares have meaningfully climbed this year.
“All these companies expanded year after year,” said Marinac. “You can easily see several more quarters where they go backwards, because there’s room to cut, and they have to find a way to survive.”

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– CNBC’s Gabriel Cortes contributed to this article.
With no slowdown in sight, thousands of members of the United Auto Workers Union are entering their fifth week of striking against the Detroit Three automakers.
Most recently, 8,700 workers at Ford’s largest plant walked off the job, putting the company at risk of losing roughly $30 million per day in profit.
Workers at the Ford Kentucky Truck Plant build the Ford Super Duty, Ford Expedition and Lincoln Navigator. Super Duty is among the most profitable products Ford sells. The vehicles built at the factory generate $25 billion a year in revenue, according to a statement from Ford.
Hourly union workers at the plant are calling for a fair contract and better pay, joining the 25,300 autoworkers already on the picket lines at certain Ford, GM and Stellantis facilities across the country.
According to reporting from the Associated Press, the Detroit Three have already laid off roughly 4,800 autoworkers at factories that are not on strike. Striking workers are receiving $500 a week from the union’s strike pay fund.
UAW strike Where things stand as strike hits 1 month mark and some workers grow impatient
How does autoworker pay compare to other hourly workers?
According to the U.S. Bureau of Labor Statistics, an average autoworker makes about $28 per hour. This wage increased about a dollar from the year before.
In states where the the Detroit Three automakers have factories, workers are striking for better pay. Here is how average hourly pay compares in other common occupations:
-
Within the childcare industry, food preparation and serving industry and production industry, production jobs pay the most per hour across all states.
-
The average hourly wage for production workers is the highest in California, Washington and Illinois, each of which are among the top 20 most expensive states in the U.S., according to the Bureau of Economic Analysis’ regional price parities data.
-
The average hourly wage for childcare workers is the lowest in Kentucky, which is among states where consumer goods are the cheapest in the U.S., according to BEA data. Childcare workers there earn an average of $12.28 an hour.
How does autoworkers’ pay compare to that of CEOs?
Autoworkers say their pay has stagnated even as the profits of Detroit’s car companies and CEO compensation have increased.
The three companies have near-record profits, collectively reporting $21 billion in earnings in the first half of this year alone.
“The union is saying, ‘Wait a minute. You put the COLA on pause, so let’s reinstate it because you’re making money now and we see the CEO pay go higher and higher,” said Art Wheaton, director of labor studies at Cornell University in Ithaca, New York.
Top-tier workers – meaning anyone who joined the company in 2007 or earlier – make roughly $33 an hour on average, contract summaries for the Detroit Three show. Those hired after 2007 are part of the lower tier and earn up to $17 an hour based on a buildup of 6% annual raises under the last contract.
Not all autoworkers at the Detroit Three come close to the top pay rate. Temporary or supplemental workers make less.
And as far as compensation to the CEOs – $29 million for GM’s Mary Barra, $21 million for Ford’s Jim Farley and $24.8 million for Stellantis in 2022, as the Free Press recently noted.
UAW strike: Here is what Detroit automakers have to give the UAW to get a deal, experts say
What is UAW striking for?
-
Eliminating wage tiers
-
A 40% wage increase over the life of the contract. The 40% signifies the increase in CEO salaries.
-
Restoring the cost-of-living allowance adjustments to counteract inflation.
-
Defined benefit pension for all workers.
-
The right to strike over plant closures.
-
A reduced work week and more paid time off.
-
Limiting the use of temporary workers.
-
Increased benefits to current retirees.
Since the strike began in mid-September, UAW president Shawn Fain has expanded it twice to include 38 parts distribution centers across the nation and GM’s Lansing Delta Assembly, along with Ford’s Chicago Assembly and Kentucky Truck.
There are about 115,000 UAW members still on the job.
Jamie L. LaReau contributed to this reporting
This article originally appeared on USA TODAY: How much do UAW workers make? A look at hourly wages across US states
How a fight over two jobs pushed the dockworker union into bankruptcy

Only weeks ago, the dockworkers union was riding high as its members voted to approve a new six-year contract, ensuring peace at the ports of Los Angeles, Long Beach and 27 other West Coast harbors.
Now, the union has landed in bankruptcy protection as it figures out how to pay a hefty court judgment involving accusations of slowdowns and other labor actions during a 2011 dispute — the same kind of tactics employed during the recent contentious contract negotiation. Labor experts are concerned that a serious precedent is being set.
“We intend to use the Chapter 11 process to implement a plan that will bring this matter to resolution and ensure that our Union continues to do its important work for our members and the community,” said Willie Adams, president of the 40,000-member International Longshore and Warehouse Union, in a news release this week.
The union said it will continue to operate as usual but can no longer afford to defend itself in the lawsuit brought by a former shipping terminal operator at the Port of Portland, Ore.
The company, ICTSI Oregon Inc., which is based in the Philippines, could not be reached for comment. In a statement emailed to Reuters, the terminal operator said that the bankruptcy filing was the union’s “latest maneuver to avoid accountability.”
Read more: West Coast dockworkers ratify a new six-year contract
Ken Jacobs, a labor specialist and chair of the UC Berkeley Center for Labor Research and Education, said “people are very concerned about the precedent this is setting with an employer suing a union over labor activity. The severity of the penalty that was levied was also disconcerting.”
Nelson Lichtenstein, director of the UC Santa Barbara Center for the Study of Work, Labor and Democracy, said: “I think it means that when employers see a legal opening against a union they are going to run with it to bankrupt or weaken existing unions.”
The case involves a bitter labor dispute over just two jobs that pitted the ILWU against terminal operator ICTSI Oregon at a seaport of only minor significance in terms of the number of cargo containers moved.
The obscure feud began when ILWU leaders pushed ICTSI Oregon to give it two jobs previously represented by the electricians’ local after ICTSI signed a lease with the Portland port in 2011 to begin running the container yard. ICTSI, which accused the union of work slowdowns, said it could not reassign the jobs because the port controlled them. During the dispute, international shipping lines stopped sending cargo containers to Portland.
ICTSI paid the port $20 million to get out of its lease and sued the union, listing that amount and other losses as damages.
Read more: UAW aims for drivers’ attention by striking parts warehouses, including two in the Inland Empire
A federal jury found the union liable for unlawful labor practices and awarded the company $94 million, an amount subsequently reduced by a U.S. District Court judge to $19 million. But ICTSI rejected that amount, and a retrial was set for next year, leading to the bankruptcy filing, ILWU told its members.
“While we have attempted numerous times to resolve the decade-long litigation with ICTSI Oregon, Inc., at this point, the Union can no longer afford to defend against ICTSI’s scorched-earth litigation tactic,” Adams said.
This story originally appeared in Los Angeles Times.
‘It’s been a bloodbath’: Long-term bond ETFs deepen losses after hotter-than-expected jobs report
Exchange-traded funds that buy long-term bonds deepened losses on Friday, as investors weighed a U.S. jobs report that was much stronger than Wall Street anticipated.
Shares of the battered iShares 20+ Year Treasury Bond ETF
TLT,
with $38 billion of assets under management, fell 1.2% on Friday, according to FactSet data. The ETF has lost 12.7% this year on a total return basis.
Bonds have been under selling pressure, with yields recently soaring as they continued their 2023 march higher on Friday. Longer-term bonds have been particularly hurt in the selloff.
“The path of least resistance continues to be higher for long-term Treasury yields,” said Yung-Yu Ma, chief investment officer at BMO Wealth Management, by phone Friday. “It’s been a bloodbath” for investors who bought long-term Treasurys ahead of their recent yield surge, he said.
BMO Wealth Management has been recommending to clients this year to buy short-duration Treasurys, according to Ma. He said he’s favored the iShares 1-3 Year Treasury Bond ETF, which trades under the ticker SHY. The fund has outperformed long-term Treasury bond ETFs so far in 2023.
“We’ve been concerned about the prospect of longer-term yields spiking, which they have,” Ma said. He has preferred to “stay shorter-duration” because “we didn’t believe in a hard landing” for the economy.
The U.S. economy added 336,000 jobs in September, according to a report Friday from the Bureau of Labor Statistics. That was far above the 170,000 of job gains forecast by economists polled by the Wall Street Journal.
Read: Jobs report shows big 336,000 gain in hiring in September. Labor market still hot.
Investors have been adjusting to the idea of the Federal Reserve keeping interest rates higher for longer as it aims to keep bringing down inflation. Although some have worried the U.S. faces a potential recession, which could then prompt the Fed to cut rates, the economy has been chugging along.
Meanwhile, the large amount of borrowing needed by the U.S. government may lead to higher yields.
“A massive supply of Treasurys” has to be absorbed by the market this quarter and into 2024, said Ma. The “reality of supply and demand still speaks to those longer rates still going higher.”
In his view, the yield on the 10-year Treasury note will probably rise beyond 5%, with only “a greater economic slowdown” than currently anticipated possibly derailing that trajectory higher.
Ten-year Treasury yields
BX:TMUBMUSD10Y
rose Friday to 4.783%, climbing for a fifth straight week, according to Dow Jones Market Data.
Meanwhile, the iShares 1-3 Year Treasury Bond ETF
SHY
has seen a total return this year of 1.7% after shares of the fund dipped 0.1% on Friday. FactSet data show. By contrast, the Vanguard Long-Term Treasury ETF
VGLT
ended Friday with a 2023 loss of 11.5% on a total return basis.
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U.S. stocks see losses accelerate as traders on edge ahead of Friday jobs report
U.S. stocks saw their losses accelerate on Thursday, reversing most of the S&P 500’s gains from its best session in three weeks a day earlier, as Treasury yields whipsawed, keeping investors on edge ahead of Friday’s monthly jobs report from the Labor Department.
What’s happening
-
The S&P 500
SPX
was off by 30 points, or 0.7%, at 4,233. -
The Dow Jones Industrial Average
DJIA
fell by 111 points, or 0.4%, to 33,011. -
The Nasdaq Composite
COMP
declined by 138 points, or 1%, to 13,098.
On Wednesday, the Dow Jones Industrial Average rose 127 points, or 0.39%, to 33,130, snapping a three-day losing streak, while the S&P 500 gained 34 points, or 0.81%, to 4,264 for its biggest percentage-point gain in three weeks, FactSet data show.
What’s driving markets
Treasury yields were volatile in early trade on Thursday, which added to pressure on U.S. stocks as investors digested a batch of fresh economic data ahead of Friday’s all-important September jobs report.
The yield on the 10-year Treasury note
BX:TMUBMUSD10Y
was last pegged at 4.73%, near a 16-year high reached earlier this week. Bond yields move inversely to prices.
“I think the momentum is still on the down side,” said Liz Ann Sonders, chief investment strategist at Charles Schwab, in a phone interview with MarketWatch. “There’s nothing specific that you could point to today.”
A weekly report on jobless-claims data showed no sign that layoffs have been increasing. Rising layoffs are seen as a necessary prerequisite for the Federal Reserve to start easing its monetary policy, which has weighed on both stocks and bonds since early 2022. Government data showed the number of Americans who applied for unemployment benefits last week rose slightly to 207,000, but remained near pandemic-era lows.
See: U.S. jobs report forecast: 170,000 new workers and 3.7% unemployment
Investors also received data on the U.S. international trade deficit which suggested some weakness in consumer spending, but analysts chiefly blamed the jobless claims numbers for the impact on yields and stocks.
Rising Treasury yields, particularly on the long end of the yield curve, have been widely blamed for driving the selloff in stocks that has taken place since early August. But as stocks continued to fall on Thursday with no obvious driver in sight, equity strategists see signs of investors simply following the latest trend.
“Financial markets have been rattled in the last few days,” said Bill Adams, Chief Economist for Comerica Bank. “The yield on the 10-year Treasury note has jumped about 0.6 percentage points since the beginning of September, extending a steady march higher since the early summer.”
“There are competing explanations for the surge in interest rates and they have very different implications. Treasury issuance is way up this year with a higher deficit, and the Fed is no longer a buyer; rising interest rates would be the classic warning that the deficit is starting to crowd out private-sector access to capital. But Treasury yields rose in August, too, even though the Federal government ran a monthly surplus in the month.”
“On net the increase in long Treasury yields makes the Fed more likely to choose an earlier peak in short-term interest rates and an earlier pivot to rate cuts in 2024.”
Several senior Fed officials are set to speak on Thursday, including Cleveland Fed President Loretta Mester, who spoke at the Chicago Payments Symposium at 9 a.m., and San Francisco Fed President Mary Daly, who is set to speak in New York at noon. Richmond Fed President Thomas Barkin is set to speak in North Carolina at 11:30 a.m. Eastern.
Choppy trading in recent days sent the Cboe VIX index
VIX,
a gauge of expected equity-market volatility, to 20 for the first time in four months as stocks tumbled. Some analysts see a near-term rebound ahead, but many argue the direction of bond yields remains critical for stocks.
Looking ahead to Friday, economists polled by The Wall Street Journal expect 170,000 jobs were created last month, which would be lower than the 187,000 created during the month prior.
Companies in focus
-
Exxon Mobil‘s
XOM,
-1.70%
shares fell after the company said rising crude prices are likely to boost its third-quarter profit by $1 billion, but thinner margins from chemicals will hurt profits by as much as $600 million. Analysts at RBC say that the update from Exxon is likely to result in earnings above consensus expectations but roughly in line with investor expectations. -
Rivian Automotive Inc.
RIVN,
-19.92%
shares dropped after the EV maker said it plans to offer $1.5 billion worth of “green” convertible senior notes due in 2030, and issued preliminary sales estimates that met Wall Street’s expectations. Rivian stock rose by 9% on Wednesday. -
Clorox Co. shares
CLX,
-7.38%
fell after the company cut its outlook following disruptions caused by a cyberattack first reported in August.
Dow tumbles 500 points as Treasury yields surge and investors focus on jobs data
The stock-market selloff deepened Tuesday afternoon, after data showed the labor market remains tight, leaving room for more interest rate hikes and further upward pressure on Treasury yields.
How stocks are trading
-
The Dow Jones Industrial Average
DJIA
fell 500 points, or 1.5%, to 32,931. -
The S&P 500
SPX
was down 70 points, or 1.6%, to 4,218. -
The Nasdaq Composite
COMP
dropped 272 points, or 2%, to 13,036.
What’s driving markets
Climbing U.S. bond yields remain the prime focus of traders, with the selloff in stocks pushing the Dow into negative territory for the year.
Stocks started the week and fourth quarter on a volatile note after the 10-year Treasury yield
BX:TMUBMUSD10Y,
the global benchmark, rose above 4.8%, heading towards its highest level since Aug. 13, 2007. The 30-year yield
BX:TMUBMUSD30Y
is poised for its highest level in 16 years too, jumping above 4.94%.
“Stocks and bonds are taking it on the chin again with deteriorating liquidity conditions and stronger-than-expected economic data weighing,” according to José Torres, senior economist at Interactive Brokers.
Now investors have a new shot of strong data to handle. Job openings in August rose to 9.6 million from a revised 8.9 million in July. That tops forecasts of 8.8 million openings in August.
The newest numbers “underpinned the narrative that the labor market remained solid,” said Quincy Krosby, chief global strategist at LPL Financial. Job seekers able to negotiate higher wages are a challenge for the Federal Reserve trying to address inflation with its benchmark rate, she noted.
What’s “hovering over the market is the uncertainty as to how high we can expect rates to go,” Krosby said. The other question is how high Treasury yields go, she noted. “It is the speed at which these rates have risen that have jolted the market.”
Higher implied borrowing costs, especially when rising quickly, tend to be a drag on equities, particularly since smaller or debt-laden companies may struggle to raise financing. Moreover, rising yields lower the present value of future corporate earnings, weighing on stock-market valuations.
What could be sinking in is the realization that interest rates and yields really are going to stay higher for longer.
On Tuesday, Atlanta Fed President Raphael Bostic said there was no urgent need to change course soon. “I am not in a hurry to raise, but I am not in a hurry to reduce either,” Bostic said at a panel discussion. Bostic’s comments follow other recent comments from Fed officials showing a willingness to keep interest rates higher for longer.
Traders are seeing a roughly 30% chance of the Fed adding another 25 basis point hike at its coming meeting, according to the CME FedWatch tool.
Read also: How Treasury market upheaval is rippling through global markets in 4 charts
More labor market data is coming this week. The September ADP private-sector employment report is released Wednesday, followed on Thursday by weekly initial unemployment claims. Then, Friday sees the all-important nonfarm payrolls report for September — and investors can gauge how that fits into the next chapter for interest rates.
The stronger-than-expected JOLTS data Tuesday could be a “harbinger” of a stronger-than-expected jobs report, Krosby said. “That’s the key data release this week. The market is keenly focused on the broader labor landscape.”
Companies in focus
-
McCormick & Co. Inc.’s
MKC,
-8.40%
shares were off more than 8% after its third-quarter earnings. While profits met expectations, the spice and flavor market came up short in sales. -
Shares of electric-vehicle startup VinFast Auto Ltd.
VFS,
-7.14%
fell 5% to $9.31 Tuesday, taking the stock well below the $22 listing price when the company made its Nasdaq debut just seven weeks ago. -
Krispy Kreme Inc.’s
DNUT,
+0.32%
stock edged up 1.5% to $12.60 on Tuesday after the company said it’s exploring its strategic options for Insomnia Cookies, including a potential all-cash sale.
— Jamie Chisholm contributed.
How women veterans can get the higher-paying civilian jobs they deserve
Women have fought for and won bigger roles in the U.S. military in recent years, but a gap favoring their male counterparts emerges yet again when active duty ends and the civilian job hunt begins.
Women veterans are more than twice as likely to be unemployed six months after completing their service than male veterans, says research from Penn State University’s Transitioning Veterans Metrics Initiative (TVMI). Beyond that first six months, TVMI has found that 61% of veterans, including women, who want a job in the private sector are either unemployed or underemployed, meaning they find themselves stuck in a lower-skill job or receiving less pay than their military experience might suggest they deserve.
It’s a challenge that will persist without acknowledging first, that the problem exists, and further, that the gap needs to be addressed right as women emerge from their service. That’s because while the size of the nation’s military has remained steady, active duty and veteran women now make up a larger and growing percentage of that total. Further, the gaps in job matchmaking are especially troubling during a time for a low U.S. unemployment rate below 4%.
What is clear is the burden to close the post-service gender gap lies in part with the companies expanding their workforces, say experts. Hiring managers and executives need greater realization that much of the training and skills women often gain in the military align with private-sector jobs in high demand: logistics and supply-chain expertise, human resources specialists, healthcare, technology and communications project managers among them.
As for women veterans themselves, they’re best served by seeking mentors, often other women vets, who can help make sure more female voices are heard when it comes to hiring and other decision-making in Corporate America. Female veteran job-seekers can and should enlist professional services to better position résumés and engage with veteran friendly job coaches who help make sure salary expectations and demands are expressed early on in a job-search process. Salary negotiation is something their male equivalents are more likely to insist on, and more times than not, benefit from.
It’s a data-driven suite of solutions, including helpful networking, leveraging military skill sets and more that defines the primary work by Executive Director Dan Goldenberg and team at the Call of Duty Endowment. As its name implies, the endowment is the veterans-focused nonprofit arm of top-selling Call of Duty game creator Activision Blizzard Inc.
ATVI,
And the endowment partners with Hires Heroes USA and other veteran-service charities.
MarketWatch recently interviewed Goldenberg about female post-service employment gaps , especially for women of color, and the solutions his nonprofit is trying out. Answers have been edited for length and clarity.
MarketWatch: Why has the endowment chosen to focus on jobs?
Goldenberg: As the largest private funder of veteran employment, the Call of Duty Endowment believes each and every veteran, female or male, out of work or underemployed represents a lost opportunity for our society. For 14 years, we’ve been dedicated to bridging this divide by finding and funding the most effective
nonprofit organizations that connect veterans with high-quality jobs – and increasingly those who are prioritizing the placement of women veterans.
We have funded the placement of 118,000 vets with high-quality jobs by working with other high-performing nonprofits in the U.S. and the U.K. and we’ve tapped Deloitte consultants for a rigorous assessment of our outcomes. Activision Blizzard covers all of our operating cost, so every cent we raise is directly put into job services.
MarketWatch: Are there any stipulations to who you can help?
Goldenberg: We will serve any veteran who can prove they served regardless of discharge status. If they want a job, we’re going to help them get one. We don’t go just for low-hanging fruit. You know, if we were focused just on, say junior military officers, that would be a very easy. We do focus on post-9/11 veterans just because they have the longest runway left in their careers, but any veteran who asks for help gets help.
Some of our grantees [nonprofit placement partners] focus on what we call high-barrier-to-employment veterans, those who have challenges around housing, mental health, things like that.
MarketWatch: And why are women, and women of color, targeted with your latest efforts?
Goldenberg: Women veterans are almost twice as likely to have a college education as male veterans, And so we wanted to understand, we wanted the world to know that there’s a problem, and that we can do better. The Veterans Administration, by the way, says that by 2045, women will be 20% of veterans. So our whole system needs to be more sensitive to their needs.
MarketWatch: What are women veterans’ specific needs, typically?
Goldenberg: We find that there are a number of barriers that are truly distinct for women veterans that aren’t always being well addressed. Foremost, we find women veterans often are starting over in their civilian jobs often near the bottom. They’re not even getting credit for the military work they did. This is in part because some women hide their military status more than men as they expect more backlash from the distinction, historically, than a boost. But they are three times more likely to get a high quality job if they ask for help doing two things: have professionally prepared résumé help from our grantees and get coaching help on the differences between civilian and military interview techniques. And they should never pay a dime for these services.
MarketWatch: Are there other barriers?
Goldenberg: For sure, some issues impact military women in ways all women are impacted: child-care costs and conflicts, and as the COVID-19 pandemic laid bare, sandwich-generation parent-care challenges that still traditionally fall on women more than men. And broader wage discrimination.
Some of the setbacks can be cultural. In the military, you’ve always been told what to do. That’s different in the civilian world.
And I’d be remiss to not mention that military sexual trauma impacts women more than men, which can mean continued struggles in a transition to civilian life.
MarketWatch: I cover climate technology and the energy transition, and job growth in these areas is often about hiring for a “new Industrial Revolution,” where skills are changing for everyone and it’s increasingly a level playing field, skills-wise. Does that translate to post-military job hunts?
Goldenberg: So everybody’s talking about bringing manufacturing back. People don’t don’t want the jobs. They’re not taking them and why? It takes training. And training costs money. There was an organization we worked with in the past called Workshops for Warriors. They would take any veteran and in six months during the training, you might learn additive manufacturing, welding, commuter numerical control (CNC), generally, high-skill jobs. They had a 99% placement rate for their graduates. But few companies want to invest in training, so it’s a huge problem with our economy, There’s that sort of grumble, “This generation of youth doesn’t want to get their hands dirty, blah, blah, blah.” What they do require is education and training. And the question is, who’s going to pay for it? Look at our student loan issue.
You know, a lot of veterans are shocked when they get in the commercial economy, asking, like where’s the training? It’s one of the things the military does quite well.
And federal money could flow differently. Currently, the federal government is vastly underfunding the employment of veterans; it’s the lowest funded of any major veteran program area at less than 1% of the U.S. government’s approximately $300 billion veteran spend. A doubling of this amount — deployed to proven organizations in the nonprofit sector — would have a transformative impact on the lives of veteran women, in fact, all veterans.
MarketWatch: “Call of Duty,” one of the best-selling game franchises ever, has its own role in helping women (and men) transition to the civilian workforce, I understand?
Goldenberg: lt is a massive, massive game, including players generally the same age as people transitioning out of the military. We have the ability to reach audiences through job education programs that share branding with the game.
And we have a fundraising effort through the game. Players can purchase in-game Endowment packs from the Call of Duty store, including a pack featuring a female operator. All proceeds go to the endowment.
U.S. stocks post a losing month, the first for Nasdaq in 2023, ahead of August jobs report
U.S. stocks finished mostly lower on Thursday to end August on a sour note after the Federal Reserve’s preferred inflation gauge proved largely in line with expectations for July, leaving investors looking ahead to Friday’s August jobs report.
Three major stock indexes wrapped up a volatile month with the large-cap S&P 500 index suffering its first loss since February, while the Nasdaq Composite logged its first monthly slide since December 2022, according to FactSet data.
How stocks traded
-
The Dow Jones Industrial Average
DJIA
lost 168.33 points, or 0.5%, to end at 34,721.91, erasing a gain of nearly 180 points. For the month, the blue-chip gauge declined 2.4%, according to FactSet data. -
The S&P 500
SPX
was off 7.21 points, or 0.2%, to finish at 4,507.66. The large-cap benchmark slid 1.8% in August, its first monthly loss since February. -
The Nasdaq Composite
COMP
gained 15.66 points, or 0.1%, ending at 14,034.97, posting a monthly loss of nearly 2.2%, its biggest monthly decline in 2023, according to FactSet data.
On Wednesday, the Dow, S&P 500 and Nasdaq each booked a fourth straight winning session. That trimmed the S&P 500’s August loss to 1.6%, leaving the large-cap benchmark on track for its first negative month in six months, according to Dow Jones Market Data.
What drove markets
The cost of goods and services rose a mild 0.2% in July, in line with the forecast for the personal-consumption expenditures index produced by a Wall Street Journal poll of economists. Year over year, the measure showed inflation rose 3.3%, compared with 3% in June.
The core PCE reading, which strips out food and energy prices and is often described as the Fed’s favorite inflation measure, was also in line with expectations, showing a 0.2% monthly rise, while the year-over-year rate ticked up to 4.2% from 4.1%.
U.S. stocks wavered in choppy trade on Thursday as three major indexes struggled to extend their winning streak on the final trading day of August. The Nasdaq Composite closed higher for a fifth straight session, but the S&P 500 and Dow industrials snapped their four-session winning streaks.
The lack of an inflation surprise contributed to “a fairly muted” stock-market reaction as investors had already priced in the likelihood that inflation readings were going to tick higher due to base effects, said Lydia Boussour, senior economist at EY.
“But when you look at inflation data on a sequential basis, those 0.2% month-over-month increases were encouraging prints — that’s cooldown in the momentum,” Boussour said in a phone interview with MarketWatch. “These prints of 0.2% are really what the Fed wants to see to get inflation back towards the 2% target.”
Boussour expects the disinflation trend to continue in the remainder of 2023, which should allow the Fed to “stay put.” “We do think that the Federal Reserve has reached the end of the tightening cycle and we do not expect further rate hikes,” she said.
See: The U.S. dollar strikes back: What’s next after August rally
The S&P 500’s rally to a four-week high has coincided with benchmark Treasury yields
BX:TMUBMUSD10Y
pulling back from multiyear peaks as traders bet that some weaker jobs data of late will allow the Federal Reserve to stop raising borrowing costs.
“Since softer employment metrics are one of the most critical inputs for inflation normalization, it has led to a significant shift in the near-term outlook for U.S. interest rates and ignited a rally in stocks and other high-risk assets,” said Stephen Innes, managing partner at SPI Asset Management.
In other data, initial jobless claims fell by 4,000 to 228,000 in the week ending Aug. 26, the Labor Department said. It’s the lowest level of claims since the week ending July 29. Economists polled by The Wall Street Journal had estimated new claims would rise 5,000 to 230,000.
Read: What August’s jobs report could mean for stocks
Investors turned their attention to Friday’s August nonfarm payrolls report, which is due out at 8:30 a.m. Eastern and will provide more information “as to whether the labor market is actually softening,” said Richard Hunter, head of markets at Interactive Investor.
The U.S. is expected to add 170,000 jobs in August, down from 187,000 in the prior month, based on a poll of economists by The Wall Street Journal. In contrast, the U.S. added an average 287,000 new jobs a month in the first four months of the year.
“With traders currently assuming an interest-rate pause for September, the question remains as to whether the end of the hiking cycle has been reached. Such an outcome would be positive for growth stocks in particular, which has enabled ongoing strength within the megacap technology sector,” Hunter added.
Boussour said her team expects “a noisy August jobs report” on Friday despite “the overall picture will be the labor market conditions continue to soften essentially,” but the strikes of SAG-AFTRA and southern California hotel workers, as well as the bankruptcy of trucking company Yellow Corp.
YELLQ,
could weigh on payroll growth in August.
“But that is likely to be somewhat offset by stronger payrolls on the government side,” she added.
A trio of well-received earnings reports from technology companies Salesforce Inc., Okta Inc. and CrowdStrike Holdings Inc., delivered after Wednesday’s closing bell, were also providing some support to sentiment.
Companies in focus
-
Salesforce shares
CRM,
+2.99%
finished nearly 3% higher on Thursday, leading Dow gainers, after the company delivered a strong outlook and improved margins two weeks ahead of the customer-relations-management software giant’s annual Dreamforce confab in San Francisco. -
Shares of Okta Inc.
OKTA,
+13.51%
rose 13.5% after the identity-management software company late Wednesday hiked its annual earnings outlook by about a third after its worst-case scenario of weak business spending never materialized. -
CrowdStrike shares
CRWD,
+9.28%
jumped 9.3% after the cybersecurity company topped expectations with its results and outlook for the latest quarter. -
DGUBS Group shares
UBS,
+5.61%
rose 6.1%, as the Swiss bank reported a $29 billion profit and said inflows to wealth management have been positive this quarter. -
Dollar General Corp.’s stock
DG,
-12.15%
dropped 12.2% after the discount retailer posted weaker-than-expected second-quarter earnings and lowered its guidance. -
Shares of AMC Entertainment Holdings Inc.
AMC,
-1.41%
ended 1.4% lower despite the announcement that a Taylor Swift movie is coming to theaters in October. Shares of other theater-chain operators, including Cinemark Holdings Inc.
CNK,
+1.37%
and Imax Corp.
IMAX,
+0.84% ,
finished higher on Thursday.
Jamie Chisholm contributed