THE HOT STORY

Delayed jobs report reveals hiring slowdown in November

U.S. job growth slowed sharply in November, with only 64,000 jobs added and the unemployment rate rising from 4.4% in September to 4.6%, the highest in over four years. The Labor Department report, the publication of which was delayed due to the six-week federal government shutdown, also showed a net loss of 105,000 jobs in October, primarily due to federal workforce reductions. The slowdown has prompted the Federal Reserve to cut interest rates for the third time since September. Health care and construction were among the few sectors to add jobs, at 46,000 and 28,000 respectively, while manufacturing and hospitality saw losses. Wage growth remained modest at 3.5% year-on-year. “The U.S. economy is in a jobs recession,” said Heather Long, chief economist at Navy Federal Credit Union. “The nation has added a mere 100,000 in the past six months. The bulk of those jobs were in healthcare, an industry that is almost always hiring due to America’s aging population.”

ABC News

CNBC

NPR

Wall Street Journal

TECHNOLOGY

Deloitte CTO warns of AI investment gap: 93% spent on tech, just 7% on people

Bill Briggs, chief technology officer at Deloitte, has flagged a critical imbalance in corporate artificial intelligence (AI) investment, revealing that companies are allocating 93% of AI budgets to technology and only 7% to people. In Deloitte’s latest Tech Trends report, Briggs warns this skewed strategy risks undermining AI’s potential, likening it to having “just cilantro” instead of the full recipe. He highlights a growing “shadow AI” problem, with 43% of employees using unauthorized AI tools, amid a 38% drop in trust towards employer-approved AI systems. Briggs urges firms to shift focus toward cultural change and employee training, or risk expensive tools that workers do not trust or use.

Fortune

UPS invests in automation with $120m robot purchase

United Parcel Service plans to enhance its automation efforts by investing $120m in 400 unloading robots as part of a broader $9bn strategy aimed at increasing profitability by cutting labor costs. The deployment of these robots to unload trucks and containers is expected to alleviate key bottlenecks at warehouse docks, where manual labor currently dominates. This move highlights the collaboration between UPS and Pickle Robot Co., a start-up that has raised approximately $97m since its inception in 2018.

Bloomberg

ECONOMY

U.S. growth slows as services and manufacturing cool in December

U.S. business activity decelerated in December, with S&P Global’s composite PMI falling to 53.0 from 54.2, marking the slowest pace since June. Both services and manufacturing sectors missed expectations, as new business demand hit a 20-month low and manufacturing orders declined for the first time in a year. Trade tensions, immigration policy shifts, and a prolonged government shutdown have dampened business confidence. GDP growth projections for year-end have been revised down to 2.5%, with rising input costs posing fresh challenges for the Federal Reserve. "A key concern is rising costs, with inflation jumping sharply to its highest since November 2022, which fed through to one of the steepest increases in selling charges for the past three years," said Chris Williamson, chief business economist at S&P Global Market Intelligence. "Higher prices are again being widely blamed on tariffs, with an initial impact on manufacturing now increasingly spilling over to services to broaden the affordability problem."

Finimize

America's new social media rule could deter tourists, industry group warns

The U.S. travel and tourism industry has expressed concerns over a proposed rule requiring foreign visitors to provide social media handles from the past five years. The U.S. Travel Association warned that the policy, set to take effect on February 8th, could deter millions of travellers and impact the billions they contribute to the economy. "If we get this policy wrong, millions of travelers could take their business and the billions of dollars they spend elsewhere," the association said. The proposal aims to enhance security.

US News and World Report

LEGAL

Boston Saks stylist accused of $400,000 fraud through fake returns scheme

Suhail Kwatra, a longtime personal shopper at Saks Fifth Avenue in Boston known as the “Fashion Whisperer,” has been charged with stealing over $400,000 from the retailer through fraudulent returns and misuse of store gift cards, according to a criminal complaint. The allegations state Mr Kwatra processed refunds for uncollected items, kept the money via gift cards, and misused promotional incentives and a corporate credit card. Though Mr Kwatra initially confessed in a handwritten note detailing losses totalling $429,400, he now denies wrongdoing and claims Saks is retaliating after he explored other job opportunities. Saks has declined to comment, while Mr Kwatra awaits arraignment later this month.

Wall Street Journal

INTERNATIONAL

Labour's workers' rights bill clears final hurdle

The U.K. Labour government's Employment Rights Bill has successfully passed its final parliamentary stage and is expected to become law before Christmas. Business Secretary Peter Kyle expressed his delight, saying the legislation will modernize outdated employment laws and enhance workplace dignity. Key provisions include access to sick pay and paternity leave from day one, along with protections for pregnant women. Prime Minister Sir Keir Starmer said the development marked a "major victory for working people in every part of the country." Unite union's general secretary Sharon Graham said the bill must now be implemented "without any further dilution or delay." The bill applies to England, Scotland and Wales, but not Northern Ireland.

Petrobras strike disrupts operations amid pension disputes

A strike at Brazil's state-run oil company Petrobras has entered its second day, affecting 24 oil platforms and eight refineries due to disputes regarding pension fund deficits and employee compensation. Despite the strike, Petrobras claims that overall production has not been impacted, because the company has implemented contingency measures to maintain operations. The union reported that additional facilities, including transport units and biodiesel plants, have also been affected by the action.

Reuters

VW offers early exits to India plant workers amid restructuring

Volkswagen is offering early retirement to all of its 2,300 workers at its two factories in India's western Maharashtra state, as the automaker launches a restructuring effort in a bid to to overcome obstacles to local growth. After more than two decades of operations, Volkswagen still has only 2% market share in India. The early retirement scheme for blue-collar workers is designed to "rationalize the manpower and align it with current needs." Volkswagen wants to ensure it can continue to pay competitive wages and that the plants would continue to operate, a source said.

Reuters

OTHER

Canadians toast return of U.S. alcohol sales

Canadians are slowly raising a glass to U.S. alcohol again, as provinces resume limited sales of products pulled from shelves earlier this year in response to U.S. tariffs on Canadian goods. Manitoba, Nova Scotia, and Quebec have begun offering stockpiled American spirits and wines, often with proceeds going to local charities, while Ontario and British Columbia continue to hold large inventories. Popular items, particularly Kentucky bourbon and California wines, have seen strong demand, with Manitoba reporting nearly $2m in sales on the first day of public availability.

CBC

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