The US labour market showed signs of a steady slowdown in October, with job openings increasing moderately and layoffs declining, according to the latest Job Openings and Labor Turnover Survey (JOLTS) report released by the Bureau of Labor Statistics on Tuesday. Job openings, a key indicator of labour demand, rose by 372,000 to 7.744 million at the end of October. However, the September figures were revised downward to 7.372 million from the initially reported 7.443 million. Economists polled by Reuters had anticipated 7.475 million vacancies. Labour Market Dynamics While job openings increased, hires dropped by 269,000 to 5.313 million, and layoffs fell by 169,000 to 1.633 million. These figures suggest a gradual cooling of the labour market rather than a sharp contraction. Hurricanes and strikes also impacted October’s labour market data. Rebuilding efforts in storm-affected regions and the resolution of strikes at Boeing and another aerospace company are expected to contribute to a ...
Thousands of German workers from the electrical engineering and metal industries, including employees at major companies like Porsche, BMW, and Mercedes, launched nationwide strikes on Tuesday to demand higher wages. This comes amid growing concerns about the future of Germany's industrial sector as it grapples with high costs, weak exports, and increasing competition from abroad.
The strikes, organized by the IG Metall union, have added pressure to a business environment already struggling with declining competitiveness. Companies like Volkswagen are considering drastic measures, including the possible closure of three factories, mass layoffs, and 10% wage cuts. This would mark the first time in Volkswagen's 87-year history that it closes plants in Germany.
Germany’s economic challenges have also intensified political instability, putting pressure on Chancellor Olaf Scholz's coalition government. Scholz is meeting with business leaders, including Volkswagen CEO Oliver Blume, to discuss the crisis, though expectations for quick resolutions are low. Finance Minister Christian Lindner has separately announced a different summit on the same day, highlighting the government’s internal dysfunction.
Economic surveys indicate that Germany is facing not just a temporary downturn but a structural crisis. The German Chamber of Commerce and Industry (DIHK) warned that the country risks becoming an economic burden for Europe. Meanwhile, a report by the VDA auto industry association projected 186,000 job losses in the German car industry by 2035, largely driven by the transition to electric vehicles.
At the heart of the strikes, workers are demanding a 7% wage increase, far above the 3.6% offer from employers. Companies argue that the wage demands are unrealistic given the current economic climate, but workers insist they deserve their fair share.
“Wage restraint does not create jobs,” said Harald Buck, works council chairman of Porsche AG at the Zuffenhausen plant in Stuttgart, where 4,000 employees participated in strikes on Tuesday.
The next round of negotiations between Volkswagen and labor representatives is set for Wednesday, with tensions running high as Volkswagen’s works council threatens to break off the talks if progress is not made.
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