Tag Archives: jobs

Stockpiling Workers?

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Hiring is up, apparently, and hours worked by employee is down.

[E]ven as employers cut hours, they are also adding workers—something they don’t usually do when contraction looms. Payrolls rose by 339,000 in May and by nearly 1.6 million for the year to date. Layoffs were nearly 13% lower in April than in the average month in 2019, according to the Labor Department.

How does that work, exactly? This is how.

The expense and trauma of hiring have left employers unusually eager to avoid shedding staff they will need when business picks up again, according to [Managing Director and Senior Economist at Nomura, Aichi] Amemiya.

Companies this time around are stockpiling workers against the turnaround and rise of the underlying economy. This is an expense more and more employers are willing to bear during the current slowdown and potential recession in order to be ahead of the curve on the other side, rather than chasing the recovery as has been the case in past slowdowns/recessions.

Aiding and Abetting?

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Acting as an accessory?

Lululemon CEO Calvin McDonald is defending with a straight face his decision to fire two employees who, while thieves were robbing a Lululemon store, verbally objected to the thefts, filmed the thieves in the act, and called the police.

McDonald insists that employees should “let the theft occur.” He went on:

We put the safety of our team, of our guests, front and center. It’s only merchandise. They’re trained to step back, let the theft occur, know that there’s technology and there’s cameras and we’re working with law enforcement.

This is, to use the technical term, a crock. The employees he fired used cameras—the ones in their cell phones—and they worked with law enforcement—they called the cops on the thieves.

Stepping back and letting the theft occur: that puts the safety of Lululemon employees front and center how, exactly? Allowing the crimes to occur unhindered only makes Lululemon stores—and other stores in the immediate area—even more susceptible to crime. And that endangers even more store employees and those customers who are present when criminals accept the McDonalds of the nation’s invitations.

I report. You decide. Or something like that.

We’ll Soon Learn Two Things

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We’re about to learn two things about the Canadian government. The Public Service Alliance of Canada, which represents nearly a quarter million government employees, have gone on strike for…DEI claptrap like mandatory “unconscious bias” training; an intrinsically racist $1,500 bonus that’s only for Cree, Inuktitut, Dene, or any other Canada Indigenous language speakers; more racism in the form of special time off just for Indigenous employees; government-paid, which is to say Canadian taxpayer-paid, time off for union “training;” a union-administered “Social Justice Fund,” which PSAC carefully declines to say is its purpose—just give the union the money—and on and on.

One of the things we’re going to learn is how much courage Prime Minister Pierre Trudeau and his government have in standing up to this union’s strike, an action (not unique to PSAC) that is, essentially, extortion in that a striking union is saying it’s not going to allow the struck entity to operate until the entity pays the union’s demanded vig. In particular, will the Trudeau government show the same “courage” against this employee strike that it showed against a recent trucker protest, and will it use similarly heavy-handed tactics, which included freezing/seizing bank accounts, to break up the union strike?

The other thing we’ll learn is how much, or how little, these workers are missed as Canada’s government continues to function without them.

The PSAC 224-page program of demands can be read here.

Higher Ed Administrators and Values

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New Jersey’s Progressive-Democratic Party Governor, Phil Murphy, has decided to intervene, nakedly, on the side of unions in a labor dispute between Rutgers faculty and Rutgers administrators.

Rutgers faculty walked off the job Monday after three employee unions launched a strike. The move has left classrooms empty….

Under New Jersey law, university administrators can go into State court and get an injunction forcing an end to the strike and a resumption/continuation of negotiations. Murphy has stepped in, though, and told the administrators “don’t you dare.” Murphy’s diktat isn’t, strictly speaking, enforceable, but Murphy does control 20% of Rutgers’ state funding, and he appoints the majority of its board.

As the WSJ editorial put it,

…administrators are now under political pressure to cave.

Not entirely, though. They could force Murphy’s hand by going to court anyway. These administrators just have to decide which they value more: their personal jobs or the Rutgers students and their ability to get the education they’re paying princely sums for.

Those administrators’ actions will make their values obvious, regardless of how they might characterize their choice.

Gainful Employment

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In her Wednesday Wall Street Journal op-ed, Judy Shelton wrote extensively about the Federal Reserve Bank’s spotty performance in combatting the latest round of inflation, effort in which the Fed has been engaged for the last year.

Then she concluded her piece with this:

In other words, when capital is allocated through meaningful price signals that reward long-term investment in productive economic opportunities, people become gainfully employed and real growth leads to greater prosperity.

True enough as far as it goes. However, the Fed’s impact on capital allocation isn’t the only factor.

Congressional/Presidential—which is to say our elected representatives—spending and taxing policies are equally important, if not more so, factors. Our current welfare structure, based on high and increasing taxing and high and increasing spending, pays too many able-bodied to not work, and that reduces the number of folks ready to become gainfully employed. With the number of workers artificially reduced, the ability to allocate capital is limited.