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    Southwest CEO Bob Jordan Faces a Giant Crisis, 10 Months Into the Job

    Bob Jordan, the airline’s top executive, heralded the company’s performance just weeks before the storm highlighted gaping weaknesses in its operations.After Southwest Airlines made it through Thanksgiving with few flight cancellations, Bob Jordan, the company’s chief executive, was in a celebratory mood. At a meeting with Wall Street analysts and investors this month at the New York Stock Exchange, he said the company’s performance had been “just incredible.”But a few weeks later, over the Christmas holiday, Southwest’s operations went into paralysis, forcing the company to resort to mass cancellations. The debacle has raised questions about Mr. Jordan’s performance and has prompted employees and analysts to ask why the company has been slow to fix well-known weaknesses in its operations.Other airlines fared far better during the extreme cold weather over Christmas weekend than Southwest, which after days of disruption canceled more than 2,500 flights on Wednesday, vastly more than any other U.S. airline, according to FlightAware, a flight tracking service. The airline has already canceled more than 2,300, or 58 percent, of its flights planned for Thursday.Travelers, lawmakers and even employees are increasingly demanding answers from Southwest and Mr. Jordan. While the company has repeatedly apologized for its performance, it has provided few details about how things went so wrong and what it is doing to right its operations. The company said on Wednesday that Mr. Jordan and other executives were not available for interviews.Mr. Jordan implied on Tuesday that the airline was caught out by a low-probability event after many delays and cancellations.Christopher Goodney/BloombergIn a video posted on Southwest’s website late Tuesday, Mr. Jordan, who became chief executive in February after three decades at Southwest, implied that the airline was caught out by a rare event. “The tools we use to recover from disruption serve us well 99 percent of the time,” he said, “but clearly we need to double down on our already existing plans to upgrade systems for these extreme circumstances.”Southwest has known for years that computer systems that manage customer reservations and assign pilots and flight attendants to each flight needed improvements. Union leaders and even the company’s executives have acknowledged that the systems struggle to handle large numbers of changes when the company’s operations are disrupted.Disruptions can have a cascading effect on Southwest’s flights because it operates a point-to-point system, in which planes travel from one destination to another; other large airlines use the hub-and-spoke system, with flights typically returning frequently to a hub airport.Southwest is now trying to piece together its operations after many of its crews and planes were not where they were scheduled to be because of earlier flight cancellations, the company said in an emailed statement to The New York Times. Because the company’s operations have been so thoroughly upended, the effort is expected to take days. To get crews and planes in the right places, Southwest had to reduce its schedule. This should allow the airline to bring crews to the airports where they are needed.In his video on Tuesday, Mr. Jordan appeared to acknowledge that Southwest’s model was susceptible to breaking down under stress. “Our network is highly complex, and the operation of the airline counts on all the pieces, especially aircraft and crews remaining in motion to where they’re planned to go,” he said.Many travelers have expressed frustration with Southwest, saying it has become impossible to get information from the company.Emil Lippe for The New York TimesThe company has spent years trying to overhaul its technology systems, but this latest crisis is expected to ratchet up the pressure on Southwest and Mr. Jordan to make progress faster.Union leaders said they had run out of patience with how the company had been updating the technology systems.Labor Organizing and Union DrivesU.K.’s ‘Winter of Discontent’: As Britain grapples with inflation and a recession, labor unrest has proliferated, with nurses, railway workers and others leading job actions across the country.Starbucks: The union organizing Starbucks workers declared a strike at dozens of stores, the latest escalation in its campaign to secure a labor contract.Education: The University of California and academic workers announced a tentative labor agreement, signaling a potential end to a high-profile strike that has disrupted the system for more than a month.Electric Vehicles: In a milestone for the sector, employees at an E.V. battery plant in Ohio voted to join the United Automobile Workers union, citing pay and safety issues as key reasons.“We’re at the point where we’ve given him enough grace,” Michael Santoro, vice president of the Southwest Airlines Pilots Association, said in an interview, referring to Mr. Jordan.Transport Workers Union Local 556, which represents Southwest’s flight attendants, issued a statement agreeing with the pilots. “It is not weather; it is not staffing; it is not a concerted labor effort; it is the complete failure of Southwest Airlines’ executive leadership. It is their decision to continue to expand and grow without the technology needed to handle it,” the union’s president, Lyn Montgomery, said.These statements stand out because Southwest has generally had very good relations with most of its labor unions. After the meltdown, labor leaders have grown increasingly critical of the company this week. The pilots group, for example, expressed frustration that the company had not yet shared its plan for getting its operation back to normal, something it typically does after disruptions. “We have heard zero,” Mr. Santoro said.Southwest Airlines staff members helped customers at Dallas Love Field Airport on Tuesday.Emil Lippe for The New York TimesIn the last few days, union officials, pilots and flight attendants have complained to journalists and on social media that crew members have often had to wait hours to be assigned to their next flight or be directed to hotels where they could spend the night.Customers have also expressed intense frustration with the airline, saying it had become impossible to get any information from the company. Some people have said they waited hours at baggage and ticket counters and gates to speak to Southwest agents. Others have tried and failed to get through to the company by phone or online.Howard Tutt came to Chicago’s Midway airport on Wednesday to try to retrieve a bag his son had checked for a flight to California that was ultimately canceled. He said he had waited hours with other customers to speak to someone to no avail. Nearby, dozens of bags were waiting to be reunited with travelers outside Southwest’s baggage office and near its carousels.“He had to leave in the middle of Christmas dinner because they told him the only flight he could get on was at 9 p.m. on the 25th,” Mr. Tutt, 61, said, referring to his son. “Then he got to the airport, checked his bags and was delayed for six hours before they canceled the flight.”Mr. Tutt, a resident of Orland Park, Ill., said the family had tried a variety of approaches to locate the bag, which contains Christmas gifts for his son’s girlfriend and her family. “We’ve emailed, tried via chat message, and called but cannot reach anyone.”Analysts said that, as cancellations piled up, Southwest found itself in a dire position in which it needed to almost start from scratch to rebuild. “You’ve lost control of what you expected the operation to be,” said Samuel Engel, a senior vice president and airline industry analyst at ICF, a consulting firm.The question that will loom over the company for a long time is why Southwest’s system broke down while those of other large airlines held up relatively well. Analysts say Southwest’s point-to-point network, which is quite different from the hub-and-spoke system used by its peers, made it harder to restart operations.But they also say Southwest’s technology, despite yearslong efforts to modernize it, was lacking. And Mr. Jordan is likely to be asked why he didn’t do more to make the systems strong enough to deal with weather and technology disruptions, which have dogged Southwest in recent years, including two mass flight cancellations and delays last year.Though Mr. Jordan has been chief executive for a short time, he has long been a member of Southwest’s senior leadership team, which would have given him plenty of opportunity to understand the company’s strengths and weaknesses. He started at the company as a computer programmer, helped develop its frequent flier program and aided in incorporating the planes and crews of AirTran Airways after Southwest acquired that company.Robert W. Mann Jr., a former airline executive who now runs the consulting firm R.W. Mann & Company, said Mr. Jordan was “in the hot seat right now.”But analysts were skeptical that Southwest could change quickly. They say the company’s management suffers from “Southwest exceptionalism,” or a stubborn belief that its unique approach to running an airline is best. Even though Southwest has it origins as an upstart taking on sleepy incumbents, analysts say its decision making can move at glacial speeds. “The airline has always been very cautious about change,” Mr. Engel said.Southwest’s approach works well much of the time, and it has contributed to the company’s strong financial performance over the last five decades, analysts say. It allowed, for instance, for planes to be used more quickly for their next flight. Longtime shareholders have done well. Southwest’s stock is up 217 percent over the last decade, outpacing the wider stock market and its best-performing rivals. But this month, Southwest’s stock, down by nearly a fifth, has performed worse than the market and its peers.There is no evidence that Mr. Jordan is vulnerable. But poor crisis management has severely weakened other airline executives.In February 2007 JetBlue experienced a meltdown when the airline did not act as quickly as its peers to cancel flights, hoping an ice storm on the East Coast would not have affected air travel as much as it did. At one point, nine JetBlue planes filled with passengers sat on the tarmac at Kennedy International Airport for six hours.David G. Neeleman, JetBlue’s founder and chief executive at the time, who was also a former Southwest executive, said he was “humiliated and mortified.” Months later, he agreed to step down as chief executive.Mr. Neeleman did not respond to requests for comment.Robert Chiarito More

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    Global economy is heading into a decade of low growth, economist says

    The International Monetary Fund now projects that global GDP growth will slow from 6% in 2021 to 3.2% in 2022 and 2.7% in 2023.
    Speaking to CNBC’s “Squawk Box Europe” on Tuesday, Lacalle said the potential for a full reopening of the Chinese economy was “the biggest positive” that markets could expect for 2023.

    A screen displays the Fed rate announcement as a trader works on the floor of the New York Stock Exchange (NYSE), November 2, 2022.
    Brendan McDermid | Reuters

    The global economy likely faces a decade of sluggish growth, according to Daniel Lacalle, author and chief economist at Tressis Gestion.
    Economies around the world have been grappling with a multitude of shocks — from Russia’s invasion of Ukraine to China’s persistent zero-Covid measures — that have sent inflation soaring and weakened activity.

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    The International Monetary Fund now projects that global GDP growth will slow from 6% in 2021 to 3.2% in 2022 and 2.7% in 2023. The Fund characterized this as “the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the Covid-19 pandemic.”
    Meanwhile, global inflation is forecast to rise from 4.7% in 2021 to 8.8% this year before declining to 6.5% in 2023 and to 4.1% by 2024, remaining above the target levels for many major central banks.
    China offered some solace to economists and market participants on Tuesday, when it officially announced the end of quarantine requirements for inbound travelers on Jan. 8 — symbolizing an end to the zero-Covid policy that it has held for nearly three years.
    Speaking to CNBC’s “Squawk Box Europe” on Tuesday, Lacalle said the potential for a full reopening of the Chinese economy was “the biggest positive” that markets could expect for 2023.

    “We have been looking at a very bleak picture for the Chinese economy, which is essential not just for the growth of the rest of the world but particularly for Latin America and also for Africa,” he said.

    “The reopening of the Chinese economy is certainly going to give a significant boost to growth all over the world, but also — and I think it is a very important factor — German exporters, French exporters have felt the pinch of the lockdown and the weakening of the profit environment in China, and this is certainly going to help a lot.”
    However, he suggested that this boost will not come close to bringing growth levels close to where they were in the years before the pandemic for a good while to come.
    “I think that we are probably going to move into a decade of very, very poor growth in which developed economies are going to find themselves lucky with 1% growth per annum, if they are able to achieve it, and what is more unfortunate than everything else is with elevated levels of inflation,” Lacalle said.
    “I think that we are living the backlash of massive stimulus packages that were implemented in 2020 and 2021. That has not delivered the kind of potential growth that many economists expected.”
    Yet despite the bleak outlook, he emphasized that there is not a crisis on the horizon.
    “I think that markets are starting to price that environment in which the situation globally is not of a buoyant level of growth and economic development, but [is] one that avoids a financial crisis, and if that happens, it is certainly positive,” he concluded.

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    Google Employees Brace for a Cost-Cutting Drive as Anxiety Mounts

    The tech giant has so far taken steps to streamline without mass layoffs, but employees are girding for deeper cuts.Google workers in Switzerland sent a letter this month to the company’s vice president of human resources, outlining their worries that a new employee evaluation system could be used to cull the work force.“The number and spread of reports that reached us indicates that at least some managers were aggressively pressured to apply a quota” on a process that could lead to employees getting negative ratings and potentially losing their jobs, five workers and employee representatives wrote in the letter, which was obtained by The New York Times.The letter signaled how some Google employees are increasingly interpreting recent management decisions as warnings that the company may be angling to conduct broader layoffs. From the impending closure of a small office and the cancellation of a content-moderation project to various efforts to ease budgets during 2023 planning meetings, the Silicon Valley behemoth has become a tinderbox of anxiety, according to interviews with 14 current and former employees, who spoke on the condition of anonymity for fear of retribution.In some cases, Google employees have reacted to a program that the company began in July to simplify operations, cut red tape and make itself more productive. In other instances, they have had budget conversations, with some teams unable to hire more next year, the people said. And workers have also fretted over decisions made months ago that, to some, have taken on new meaning, they said.The worries have grown as Google’s tech industry peers have handed out pink slips amid a souring global economy. Last month, Meta, the owner of Facebook and Instagram, purged its ranks by 11,000, or about 13 percent of its work force. Amazon also began laying off about 10,000 people in corporate and technology jobs, or about 3 percent of its corporate employees.Even Google, which is on track to make tens of billions of dollars in profits this year, has had to come to terms with a slowdown. In October, as the digital advertising market slumped, Google’s parent company, Alphabet, reported that profit dropped 27 percent in the third quarter from a year earlier, to $13.9 billion.Google did not comment on employee anxiety in a response to a request from The Times. Sundar Pichai, the chief executive, said in October that the company would “focus on a clear set of product and business priorities.” He also said it would slow hiring and “moderate” the growth of its expenses.The State of Jobs in the United StatesEconomists have been surprised by recent strength in the labor market, as the Federal Reserve tries to engineer a slowdown and tame inflation.Delivery Workers: Food app services are warning that a proposed wage increase for delivery workers in New York City could mean higher delivery costs.A Self-Fulfilling Prophecy?: Employees seeking wage increases to cover their costs of living amid rising prices could set off a cycle in which fast inflation today begets fast inflation tomorrow.Disabled Workers: With Covid prompting more employers to consider remote arrangements, employment has soared among adults with disabilities.A Feast or Famine Career: America’s port truck drivers are a nearly-invisible yet crucial part of the global supply chain. And they are sinking into desperation.Unlike other big tech companies, Google has so far avoided large-scale job cuts. Still, investors have pushed the company to become more aggressive about “defending” its huge profits, said Mark Mahaney, an analyst at Evercore ISI.“One of the most obvious ways to do that is to cut costs and reduce your employee head count,” he said. He added that it was “kind of odd” that Google’s parent had hired 30,000 employees in the last three quarters, given the economic trends. At the end of September, Alphabet had 186,779 workers.In recent months, Google has appeared to pay more attention to costs. In July, it started the program to streamline operations. Soon after, it canceled some projects, including the Pixelbook laptop and Stadia, its streaming platform for video games. It has also reduced funding for Area 120, an in-house product incubator.At one recent meeting, a Google human resources representative told a worker that the company would revisit the possibility of broader layoffs in the new year, and that it was a decision for Mr. Pichai, according to an audio recording obtained by The Times.Google has told other employees that it would put a priority on trimming real estate expenditures, travel costs and perks before it pursued layoffs, said a person familiar with the conversations, who spoke on the condition of anonymity because the conversations were private. The company plans to close a small office in Farmington Hills, Mich., a suburb of Detroit, next month.Google said in October that it would slow hiring and “moderate” the growth of its expenses.Jason Henry for The New York TimesProject cancellations and reorganizations have stoked nervousness. In September, Google’s YouTube shut down a project based in the Farmington Hills office with nearly 80 workers, laying off some staff members who did not find new roles at the company, four people familiar with the decision said. YouTube had hired them as contract workers to moderate content on the video platform. Google said 14 workers had lost their jobs..css-1v2n82w{max-width:600px;width:calc(100% – 40px);margin-top:20px;margin-bottom:25px;height:auto;margin-left:auto;margin-right:auto;font-family:nyt-franklin;color:var(–color-content-secondary,#363636);}@media only screen and (max-width:480px){.css-1v2n82w{margin-left:20px;margin-right:20px;}}@media only screen and (min-width:1024px){.css-1v2n82w{width:600px;}}.css-161d8zr{width:40px;margin-bottom:18px;text-align:left;margin-left:0;color:var(–color-content-primary,#121212);border:1px solid var(–color-content-primary,#121212);}@media only screen and (max-width:480px){.css-161d8zr{width:30px;margin-bottom:15px;}}.css-tjtq43{line-height:25px;}@media only screen and (max-width:480px){.css-tjtq43{line-height:24px;}}.css-x1k33h{font-family:nyt-cheltenham;font-size:19px;font-weight:700;line-height:25px;}.css-1hvpcve{font-size:17px;font-weight:300;line-height:25px;}.css-1hvpcve em{font-style:italic;}.css-1hvpcve strong{font-weight:bold;}.css-1hvpcve a{font-weight:500;color:var(–color-content-secondary,#363636);}.css-1c013uz{margin-top:18px;margin-bottom:22px;}@media only screen and (max-width:480px){.css-1c013uz{font-size:14px;margin-top:15px;margin-bottom:20px;}}.css-1c013uz a{color:var(–color-signal-editorial,#326891);-webkit-text-decoration:underline;text-decoration:underline;font-weight:500;font-size:16px;}@media only screen and (max-width:480px){.css-1c013uz a{font-size:13px;}}.css-1c013uz a:hover{-webkit-text-decoration:none;text-decoration:none;}What we consider before using anonymous sources. Do the sources know the information? What’s their motivation for telling us? Have they proved reliable in the past? Can we corroborate the information? Even with these questions satisfied, The Times uses anonymous sources as a last resort. The reporter and at least one editor know the identity of the source.Learn more about our process.Google said that through these types of reorganizations, it was not looking to reduce the size of its overall work force, but that some teams might eliminate roles as the company reassessed its priorities.Some teams that consistently grew in the past will be unable to hire more people next year, four people familiar with the situation said. There are also higher demands for 2023 planning, such as a manager’s being asked to draft plans on how to handle 10 different budget scenarios instead of three or four, one person said. In planning discussions, leaders have pressed managers to justify their expenses, asking if there are workarounds or team reorganizations that could save money, two people said.One of the biggest concerns for some employees has been whether Google could use its new performance-evaluation system to accelerate job cuts. In May, the company installed the new system, called Googler Reviews and Development.Under the system, managers expect the bottom 2 percent of employees to be categorized as having “not enough impact,” according to two people familiar with the matter. Another 4 percent should be judged as providing “moderate impact.”Concerns have intensified that the bottom 6 percent, or roughly 11,000 people, could be targeted for dismissal, according to four people, and as earlier reported by the tech news site The Information.The GRAD system means Google now has two categories for employees who are considered low performing, compared with one under the old program, potentially leading to a bigger pool of workers at the bottom. The system has also had a bumpy rollout, with managers and employees confused about how it should work, according to the letter and four employees.Google said it expected workers would become more comfortable with the system over time. It added that it had a no-surprises policy, meaning employees would know well in advance if their performance was falling short.Before handing out the two lowest ratings, managers are also supposed to notify employees in “support check-in” meetings. Google said not every such meeting would lead to a lower rating, with support check-ins also held for those who need extra help to meet their obligations.Employees would also have indications if their manager wanted to put them on a “performance improvement” plan, the company said, a process that compels workers to improve their work within 60 days to keep their jobs. Google has given workers the choice of staying on a performance-improvement plan or resigning with a buyout package.Google said that it had not made changes to increase the number of performance plans, and that it had offered these types of severance options for years.This month’s letter from some of Google’s workers in Switzerland to Fiona Cicconi, the vice president of human resources, was led by members of a 15-person employee representation committee, ER-CH.One of their primary concerns was that contrary to what some Google executives have said, the company may have a quota for the number of employees who were supposed to have support check-ins, and whose jobs might therefore be vulnerable.Google said it had not imposed a quota on support check-ins. But when almost no one used these meetings after the GRAD system was put in place, it said, it asked leaders to convey the importance of the meetings to managers.The memo signatories in Switzerland also said there was confusion, among managers and workers alike, about who qualified for a support check-in. They urged Ms. Cicconi to put guardrails in place so that the system did not lead to mass firings.“It’s normal that new processes don’t run smoothly in the beginning, but this should not happen at the expense of Googlers’ well-being, careers and compensation,” they wrote. More

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    Retirees Are One Reason the Fed Has Given Up on a Big Worker Rebound

    Workers are in short supply three years into the pandemic job market rebound, and officials increasingly think they aren’t coming back.Alice Lieberman had planned to work for a few more years as a schoolteacher before the pandemic hit, but the transition to hybrid instruction did not come easily for her. She retired in summer 2021.Her husband, Howard Lieberman, started to wind down his consulting business around the same time. If Mrs. Lieberman was done working, Mr. Lieberman wanted to be free, too, so that the pair could take camping trips and volunteer.The Liebermans, both 69, are one example of a trend that is quietly reworking the fabric of the American labor force. A wave of baby boomers has recently aged past 65. Unlike older Americans who, in the decade after the Great Recession, delayed their retirements to earn a little bit of extra money and patch up tenuous finances, many today are leaving the job market and staying out.That has big implications for the economy, because it is contributing to a labor shortage that policymakers worry is keeping wages and inflation stubbornly elevated. That could force the Federal Reserve to raise rates more than it otherwise would, risking a recession.About 3.5 million people are missing from the labor force, compared with what one might have expected based on pre-2020 trends, Jerome H. Powell, the Fed chair, said during a speech last month. Pandemic deaths and slower immigration explain some of that decline, but a large number of the missing workers, roughly two million, have simply retired.And increasingly, policymakers at the central bank and economic experts do not expect those retirees to ever go back to work.“My optimism has waned,” said Wendy Edelberg, director of the Hamilton Project at the Brookings Institution. “We’re now talking about people who have reorganized their lives around not working.”Millions of Americans left or lost jobs in the early months of the coronavirus pandemic as businesses laid off employees, schools closed and workers stayed home. Child care disruptions, Covid-induced disability and other lingering effects of the pandemic have kept some people on the sidelines. But for the most part, workers went back quickly once vaccines became available and businesses reopened.Slow to ReturnAmericans of most ages are working or looking for work at close to their prepandemic rate. But many older people have remained on the sidelines.

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    Change in labor force participation rate since Feb. 2020
    Note: Data is seasonally adjusted.Source: Bureau of Labor StatisticsBy The New York TimesOlder workers were the exception. Among Americans ages 18 to 64, the labor force participation rate — the share of people working or actively looking for work — has largely rebounded to early 2020 levels. Among those 65 and up, on the other hand, participation lags well below its prepandemic level, the equivalent of a decline of about 900,000 people. That has helped to keep overall participation steadily lower than it was in 2020.“Despite very high wages and an incredibly tight labor market, we don’t see participation moving up, which is contrary to what we thought,” Mr. Powell from the Fed said during his final news conference of 2022, adding: “Part of it is just accelerated retirements.”More on Social Security and RetirementEarning Income After Retiring: Collecting Social Security while working can get complicated. Here are some key things to remember.An Uptick in Elder Poverty: Older Americans didn’t fare as well through the pandemic. But longer-term trends aren’t moving in their favor, either.Medicare Costs: Low-income Americans on Medicare can get assistance paying their premiums and other expenses. This is how to apply.Claiming Social Security: Looking to make the most of this benefit? These online tools can help you figure out your income needs and when to file.As would-be employees stay out of work, the resulting labor shortages have reverberated through the economy. Consumers are still shopping, and understaffed firms are eager to produce the goods and services they demand. As they scramble to hire — there are 1.7 job openings for every jobless person in America — they have been raising wages at the fastest pace in decades.With pay climbing so swiftly, Fed officials worry that they will struggle to bring inflation fully under control. Wages were not a major initial driver of inflation but could keep it high: Businesses facing heftier labor bills may try to pass those costs along to their customers in the form of higher prices.That risk is why the Fed is focused on bringing the labor market back into balance, and it is what makes the wave of retirees particularly bad news.If America’s missing workers were just temporarily sidelined, waiting to spring back into jobs given enough opportunity and a safe public health backdrop, nagging labor shortages might fade on their own. But if many of the workers are permanently retired — as policymakers increasingly believe is the case — bringing a hot labor market back into balance will require the Fed to push harder.It can do that by raising rates to slow consumer spending and business expansions, tempering the economy and slowing hiring. But the process is sure to be painful and could even spur a recession.Having fewer workers available “lowers the landing pad that the Fed has to lower the economy onto,” Ms. Edelberg said. “Because of what’s happened in the labor force, they just have to soften growth even more.”The Fed has learned the hard way that it can be a mistake to declare too confidently that a wave of workers is gone for good. In the years after the 2008 recession, policymakers began to conclude that the economy would soon run low on fresh labor supply.They were wrong. Baby boomers, the huge generation of people born between 1946 and 1964, continued working later in life than previous generations had, providing an unexpected source of workers. Their importance is hard to overstate: The U.S. labor force grew by 9.9 million people between the end of the Great Recession and the start of the pandemic. Nearly 98 percent of that growth — 9.7 million people — came from workers 55 and older.Unfortunately, there are reasons to doubt that retirees will serve as a surprise source of job market fuel this time. Boomers were in their 50s and early 60s when the economy began to emerge from the Great Recession. Many weren’t yet ready to retire; others were just about to when the 2008 recession hit, eroding their savings.Many decided to delay retirements as the labor market strengthened in the 2010s: They were relatively young, and they often needed the cash.Getting OlderWhen the Great Recession ended in 2009, most baby boomers still had at least a few years left in their careers. Today, most are well into retirement age, and the rest are getting close.

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    U.S. Population by Age, 2009

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    U.S. Population by Age, 2021
    Source: Census BureauBy The New York TimesBut key parts of that story have since shifted. The generation has aged, with older boomers now in their 70s and well over half in what would traditionally be considered their retirement years.That makes a difference. More than six in 10 people between the ages of 55 and 64 work or look for jobs, but nudge up the age scale even a little and that propensity to work drops drastically. Three in 10 people between the ages of 65 and 69 participate. Between 70 and 74, it is more like two in 10.In short, the demographic decks were always stacked for boomers to leave the labor market soon — but the pandemic seems to have nudged people who might otherwise have labored through a few more years over the cusp and into retirement.“It’s really coming from aging,” Aysegul Sahin, an economist at the University of Texas Austin, said of the decline in participation, which she has studied. “It was baked in the cake after the baby boom that followed World War II.”People over 65 do not work much for a variety of reasons. Some want to enjoy their retirements. Others want or even need to work but cannot because of poor health. In the wake of the pandemic, seniors may also be particularly alert to the risk of virus exposure at work, given how much more deadly the coronavirus is for older people.“It could be that the oldest workers are more fearful of Covid,” said Courtney Coile, an economist at Wellesley College. “Only time is going to tell whether the working-longer trend is really going to continue.”Still other seniors may be opting out of work for a more pleasant reason: Many are in decent financial shape, unlike after the 2008 downturn. Families amassed savings during the pandemic thanks to both government stimulus payments and price gains in financial assets.It took until late 2010 for people between the ages of 55 and 69 to recover to their late-2007 wealth levels, according to Fed data. This time, an early-2020 hit had been fully recovered by June 2020. Financial wealth for that age group now stands about 20 percent above where it was headed into the pandemic, despite a recent market swoon.And while inflation is eroding spending power, Social Security payments are price-adjusted, which takes some of the sting away.The Liebermans in Pennsylvania, for instance, could go back to work part time if they needed to — but they do not expect to need to.“Unless inflation went really ballistic, I think we’d be OK,” Mr. Lieberman said.To be sure, while retirements could help keep workers in short supply across America, other factors could bolster the work force. Immigration, for instance, is rebounding.And some data paint a more optimistic picture of the labor force: Monthly payroll figures from the Labor Department, which are based on a survey that’s separate from the demographic statistics, show that companies have continued to add jobs rapidly despite their complaints about a worker shortage.“Listening to Jerome Powell talk about labor supply, he seems resigned to the idea that there’s nothing left,” said Nick Bunker, economic research director for North America at the Indeed Hiring Lab. “There are more workers out there who can get hired and want to get hired.”But central bankers have to make best guesses about what will come next, and, so far, they have determined that an increase in labor supply big enough to cool down the hot labor market is unlikely.“For the near term, a moderation of labor demand growth will be required to restore balance to the labor market,” Mr. Powell said last month. More

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    ‘Most Pro-Union President’ Runs Into Doubts in Labor Ranks

    Many union leaders say the Biden White House has delivered on its promises. But its handling of a freight rail dispute has given rise to detractors.Joseph R. Biden Jr. vowed to be “the most pro-union president you’ve ever seen.” And for the last two years, labor leaders have often lauded him for delivering on that promise.They cite appointees who are sympathetic to unions and a variety of pro-labor measures, like a pandemic relief bill that included tens of billions to shore up union pension funds.But in recent weeks, after Mr. Biden helped impose a contract on railroad workers that four unions had rejected, partly over its lack of paid sick days, many labor activists and scholars have begun to ask: How supportive is the president, really?To those reassessing Mr. Biden, the concern is that the president, by asking Congress to intervene and avert a strike, missed a rare opportunity to improve workers’ bargaining power in ways that could extend beyond the rail sector. They worry that the move essentially validated an employer strategy of waiting out workers in hopes that the pressure would fizzle.“Whether this group of workers has sick days or not on some level was not the issue,” said Kim Phillips-Fein, a historian at Columbia University who studies labor. “It was: What can people ask for and expect to win through collective action?”That Mr. Biden did not take a stronger stand, she added, “suggested a political blindness to what was really at stake.”At heart, the railroad episode has stirred a debate over what it means to be a pro-labor president.Defenders see Mr. Biden as unusually outspoken on behalf of workers’ rights. They cite his declaration during a unionization vote at an Amazon warehouse in Alabama that “there should be no intimidation, no coercion, no threats” — an unusual if carefully worded gesture of presidential solidarity — and his dismay that Kellogg planned to permanently replace striking workers.“He has helped create a mood in the country as it relates to unions that has helped propel the extraordinary organizing going on,” said Stuart Appelbaum, the president of the Retail, Wholesale and Department Store Union, which organized the unsuccessful drive at the Alabama warehouse and is challenging the result. Mr. Appelbaum added that Mr. Biden’s announcement during the campaign was “beyond what we’d hoped for.”The president’s backers also point to a raft of labor-friendly regulations and legislation. Mr. Biden issued an executive order requiring so-called project labor agreements on federal construction projects above $35 million — agreements with unions that set wages and work rules — and the major climate and health bill he signed created incentives for clean energy projects to pay wages similar to union rates.Celeste Drake, a senior White House labor adviser, said in a statement that Mr. Biden had made “lasting strides for workers and unions” and that many of his achievements were “passed on a razor’s edge of tight margins in Congress, often with Republican votes, where the president’s advocacy for unions as a means to rebuilding the middle class could have jeopardized everything.” (More than 70 percent of Americans approve of labor unions, according to a recent Gallup poll.)Liz Shuler, the president of the A.F.L.-C.I.O., who was the labor federation’s second-ranking official during the Obama presidency, said Mr. Biden’s administration had been far more solicitous of labor than the previous Democratic president, whom labor leaders sometimes criticized for backing free trade deals and contentious changes in education policy.“For the decisions made in the Obama administration, labor was often an afterthought,” Ms. Shuler said. “It’s the polar opposite with Biden. We’re included at the table ahead of time, before decisions are made.”Even the railway labor situation, in which Mr. Biden urged Congress to enact a contract that included significant wage gains and improvements in health benefits, ended up more favorable to workers than it probably would have under another administration, union officials say.The alternative view of Mr. Biden, put forth by many labor historians and activists, is that while the president has in fact been more obliging to unions and maintained better relationships with union leaders than his recent Democratic predecessors, the difference is one of degree rather than kind.They say that like his predecessors, Mr. Biden effectively seeks to manage the long-term decline of labor in a relatively humane way — by making favorable appointments and enacting measures that help at the margins — but has yet to take the sorts of risks that would restore power to workers.Mr. Biden has “gestured in interesting ways in certain moments,” said Gabriel Winant, a labor historian at the University of Chicago. “But it doesn’t seem like he has the stomach to see the gestures through.”For those who subscribe to this view, the rail labor dispute was a telling encapsulation of Mr. Biden’s approach: an instance in which the administration worked closely with many leaders of the dozen unions representing rail workers but angered portions of the rank and file. Members of four unions voted down the deal that the administration had helped broker but were not allowed to strike for a better one.Administration officials say that while Mr. Biden strongly supports the right to strike, the potential costs to the economy, which the industry said could be more than $2 billion per day, were simply too high to allow rail workers to walk off the job. They point out that a strike could have also posed health and safety risks — for example, by halting shipments of chemicals that ensure clean drinking water.But to critics, these risks were in some sense the point: They provided workers with a rare moment of leverage. They say Mr. Biden could have simply refused to sign any legislation that didn’t include paid sick days, then made clear that rail carriers were to blame for any disruption if they refused.Administration officials say the potential costs to the economy were simply too high to allow rail workers to walk off the job.Dustin Chambers for The New York Times“Biden in this case revealed that I’m your friend, but I won’t risk anything for you,” said Joseph A. McCartin, a historian at Georgetown University who has written extensively about transportation labor disputes.And if taking a more forceful stand on behalf of rail workers was high risk, Mr. McCartin said, it was also high reward: Because transportation infrastructure touches almost every part of the country, labor relations in that sector tend to reverberate widely.“Everybody sees it, everybody watches, everybody’s affected,” he said. An open letter to Mr. Biden last month, signed by Mr. McCartin and more than 400 other scholars, said federal interventions in transportation labor disputes “can set the tone for entire eras.”The letter cited the government’s move to grant rail workers an eight-hour workday to avoid a strike during World War I, which paved the way for similar gains by other workers in the 1930s. By contrast, the letter said, President Ronald Reagan’s firing of striking air traffic controllers in the early 1980s helped undermine the leverage of workers across the economy for decades.The contention among critics is that by effectively depriving rail workers of the right to strike, Mr. Biden has made it more difficult for other workers to use that tool — and, ultimately, to reverse the movement’s long-term decline.Strikes with strong backing from union membership “are the only way to win standard-setting contracts, and winning standard-setting contracts is the only way to rebuild the labor movement,” said Jane McAlevey, a scholar and longtime organizer. Her coming book, “Rules to Win By: Power and Participation in Union Negotiations,” documents the importance of aggressive labor actions in improving pay and working conditions.Workers and organizers at the forefront of recent union campaigns at companies like Starbucks and Amazon said they worried that Mr. Biden’s intervention in the rail labor dispute sent employers a message that the federal government would not punish them for anti-union behavior.“Everyone understands the significance of the president getting involved,” said Christian Smalls, the president of the Amazon Labor Union, which won an election to represent workers at a Staten Island warehouse in April. “To claim you’re the most pro-union president in history and do something like this contradicts everything.” (Amazon has challenged the union’s victory.)In some respects, it may have been unrealistic for labor activists to expect that Mr. Biden, who has carried himself as a middle-of-the-road Democrat for much of his career, would depart from the basic model of labor relations that has long prevailed in his party.But during the presidential campaign, Mr. Biden and some of his senior advisers discussed ways in which they hoped to break with longstanding economic orthodoxy in Washington, with its emphasis on free markets and a small role for government.Those who support more populist-minded policies say Mr. Biden has delivered in certain ways: enacting subsidies for domestic manufacturing and restrictions on trade with China and appointing regulators who have frequently gone to court to block large mergers.“There obviously has been progress made,” said Oren Cass, a former Republican policy aide and the founder of American Compass, which seeks to make conservatism more supportive of workers.Yet when it comes to labor, some say Mr. Biden has been less willing to rethink the reigning economic model.“If Biden had intervened in a way that was more favorable and sympathetic to the rail workers, that would have been a sign of him really breaking with that model, and the model itself no longer seeming to fit the current moment,” said Ms. Phillips-Fein, the Columbia historian. “That it didn’t happen suggests the limits of his political imagination.” More

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    Consumer Spending Cooled in November as Closely Watched Inflation Gauge Slowed

    The Personal Consumption Expenditures index showed prices increased 5.5 percent last month, as consumer spending pulled back.The Federal Reserve’s preferred inflation measure is showing signs of moderating after months of rapid price increases, and a closely watched gauge of consumer spending slowed last month, a sign that the economy may have less steam as it heads into 2023.The Personal Consumption Expenditures price index climbed 5.5 percent in November from a year earlier, a slowdown from 6.1 percent in the previous reading. Stripped of food and fuel costs, which jump around, a so-called core price measure climbed 4.7 percent, down from 5 percent in the previous reading. Both figures were roughly in line with economist forecasts.Although inflation is slowing, it still has a long way to go to return to a more normal pace. The Fed has raised interest rates at the fastest clip in decades this year as it has tried to temper consumer and business demand, hoping to force price increases to moderate. Those rate increases are now trickling through the economy, slowing the housing market, cooling demand for new business investments and potentially weakening the labor market.But it remains to be seen just how much the Fed’s policy changes will slow down the overall economy. So far, spending and hiring have both been relatively resilient — which has left policymakers and economists alike closely watching each new data report, like the one released Friday, for any hint at how consumers are faring.“Reducing inflation is likely to require a sustained period of below-trend growth and some softening of labor market conditions,” Jerome H. Powell, the Fed chair, said at his final news conference of the year.The economic figures on Friday showed that consumer spending slowed in November, climbing just 0.1 percent from October, less than the 0.2 percent economists had forecast. But spending in October was revised up slightly, and posted a robust 0.9 percent increase — evidence that it is still hard to get a handle on the trajectory for consumption.Those figures do not account for inflation. Adjusted for price increases, spending did not grow at all.Inflation F.A.Q.Card 1 of 5What is inflation? More

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    The Austere Beauty of Egypt’s Long-Distance Hiking Trails

    Ben Hoffler has heard one sound more than any other during the past dozen years: that of footsteps — crunch, crunch, crunch — pressing into the sandy gravel that carpets the desert valleys of South Sinai, a seemingly endless landscape of granite mountains, colorful canyons and verdant oases.While on a 2008 climb to the summit of Mount Sinai, Mr. Hoffler, an Oxford-educated Englishman, was so moved by the power of Egypt’s mountains — believed to be where Moses received the Ten Commandments — that he went on to traverse some 7,000 miles of this high desert wilderness with its Bedouin inhabitants.He wrote a trekking guide to South Sinai in 2013, and shortly after began working with the area’s Bedouin tribes to create one of Egypt’s most extraordinary tourism projects: the Sinai Trail, the country’s first long-distance hiking path.“There’s something very special about the desert — very harsh and austere and beautiful in a way that I don’t find in lush, easy-to-survive-in landscapes,” Mr. Hoffler, who’s 39 and resembles a young Elton John, told me during a walk on the trail just months before the Covid-19 pandemic upended global tourism.The first parts of the Sinai Trail opened in 2015. In 2018, it was extended into a 350-mile loop across the bottom half of the triangular Sinai Peninsula. Along with the Red Sea Mountain Trail, another long-distance path on Egypt’s mainland that Mr. Hoffler helped the Maaza tribe open in 2019, the trail has put Egypt firmly in the ranks of a booming hiking movement in North Africa and the Middle East.A safari truck navigates through the Red Sea Mountains.Sima Diab for The New York TimesNew trails throughout the regionOver the past 15 years, new long-distance trails, some inspired by America’s Appalachian Trail, have been developed in Lebanon, Jordan, Egypt and the occupied West Bank, ranging between 300 and 400 miles in length. Those routes joined lengthy trails already established in Israel and Turkey in the 1990s. Other long-distance trails are currently under development in Saudi Arabia, as part of futuristic megaprojects being created by the kingdom in its western deserts, and in the autonomous Kurdistan Region of Iraq.And now, some of the key players in the hiking movement in the region are envisioning clusters or transnational trails that, for the first time, would physically or symbolically link these rediscovered ancient nomadic pathways and newly forged routes, traversing modern national borders.For the past three years, Mr. Hoffler has been working in southern Jordan with Bedouin tribes and Tony Howard, a hiking and climbing pioneer in the region, to create a sister trail to the Bedouin-governed routes in the Sinai and the Red Sea Mountains. There has long been talk, though nothing conclusive has come of it yet, of a route that would link the Nabatean archaeological sites at Petra, in Jordan, and the Al Ula sites in Saudi Arabia, some 300 miles to the southwest. And a new long-distance trail network is taking shape to unite the Jordan Trail, the Palestine Heritage Trail and the Lebanon Mountain Trail, in a partnership with European backers and a trail system in France. All of this echoes the efforts of the Abraham Path Initiative, an American nonprofit that has been promoting trail building and trail networks in the region since 2007, though its main focus now is funding and supporting work on the Kurdistan trail.Separately, what many of the trails have in common is a determination by their creators to bring tourists and jobs to distressed villages in the deserts and mountains. These creators are also intent on preserving — and introducing to visitors, and their own citizens — long-overlooked natural wonders, and on using the trails to dispel negative perceptions of the historically turbulent region.Mohammed Muteer, a Bedouin guide, and Ben Hoffler start a fire and prepare tea.Sima Diab for The New York TimesAs a cluster, the embryonic network that includes the Jordan, Palestine and Lebanon routes could share best practices for the marking of trails, the establishment of emergency services and the cross-promotion of hiking, according to the organizers. Trekking exchanges, however, run into the reality of geographic and political impediments. Physically linking the trails in Jordan, Palestine and Lebanon, for example, is impossible, since Lebanon shares no border with the West Bank or Jordan. And the political obstacles seem equally insurmountable, since Israeli and Palestinian passport holders are barred from entering Lebanon.To Mr. Howard, who spearheaded the popularization of climbing and hiking in Wadi Rum, a valley in Jordan, in the mid 1980s, the orchestration of what he calls super trails in the region makes too much sense not to bring to fruition.“In itself, it’s an exciting thing — it sounds good, and it’s easy to promote, and people will walk it,” Mr. Howard said. But trails also benefit the areas they pass through by increasing tourism and helping to preserve both nature and culture. Before the trails were blazed, “there was very little realization in Jordan that people wanted to visit villages and walk hills,” he explained. “It started the need to protect some of these areas.”Mohamad, a Bedouin guide, leads a camel as it carries hikers’ belongings through a wadi along the Sinai Trail.Sima Diab for The New York TimesBedouin influences and originsAmong all the long-distance routes in the region, Egypt’s trails are unique in that they are owned and managed by Bedouins, whose nomadic ancestors, centuries ago, forged many of the pathways on foot and camelback. Unlike the self-guided trails in Lebanon, Israel and Jordan, the Sinai and Red Sea Mountain trails require Bedouin guides. And in contrast to the planned Neom megaproject in northwest Saudi Arabia, whose website promises 750 miles of trails in the coming years, features renderings of luxury chalets and boasts of “immersive digital experiences,” Egypt’s trails try to replicate how the nomads’ forebears moved through the wilderness. Hikers drink from wells, sleep fireside, under the stars (or in tents) and dine on flatbread baked in acacia coals and seasoned with mountain salt. The Bedouins are relying more on camels to haul the cooking and camping supplies and colorful woven rugs.The Sinai Trail was founded by Mr. Hoffler and three Bedouin tribes, whose members serve as guides, cameleers and cooks. And when it was extended in 2018, five more tribes joined the group. The tribes saw the trail as a way to create sustainable tourism while preserving ancient pathways and traditions that were fading in this era of smartphones and pickup trucks.The Bedouin guides on the trail say they find peace in the desert wilderness, feeling a strong connection to their tribes and lands. They know the way over sprawling passes and through mazelike gorges, which plants can be used to make soap and poultices, which animals leave behind what kinds of droppings and tracks. They also maintain the legends tied to the most prominent places on the route, like the tale of the sisters who tied their long locks of hair together and jumped to their deaths from Jebel El Banat, a mountain peak along the route, to escape arranged marriages.Clockwise from top left: etchings on a rock in the Red Sea Mountains near Wadi Nagaata; a hermit cell, also near Wadi Nagaata; a trail marker used by Bedouins to navigate difficult terrain; and a collection of pottery shards.An initial end-to-end hikeWhen I first met Mr. Hoffler in the autumn of 2019, I was joining a handful of trekkers on the first end-to-end hike of the Sinai’s western side — a 125-mile section reaching from Saint Catherine, a town and tourist hub in the center of the trail, to Serabit el Khadem, near the Gulf of Suez. We crunched along a high winding path of pea-size granite strewn with jagged boulders. To the left was a mountainside of crumpled dark granite; to the right was a soaring granite curtain in beige. Nearly 5,000 feet up, at the crest of the pass, called Naqb el Hawa, or Pass of the Wind, I almost expected to hear the swell of an orchestra as a far-off vista of sandy flats and striated peaks came into view.We were stepping on rock that dated back some 600 million years, on a footpath trod by nomads thousands of years ago and, around the sixth century specifically, by Christian settlers journeying from Cairo to Mount Sinai.“The desert has always been a place of insight, a place of transformation for people,” Mr. Hoffler said as we made our way down the pass. “All of the prophets, they’ve come out with very deep insights that have changed the course of human history.”The landscape continuously changes: from craggy olive hills to bulbous beige outcroppings, from charcoal gray peaks to rose-colored cliffs. Constants are the black veins of granite running through the mountains like arrows on a fever chart. Where two lines intersect near the base, the Bedouins tell us, there is certain to be water and a stand of flat-topped acacia trees.The ghost town of Um Bogma, along the northwest corner of the Sinai Trail.Sima Diab for The New York TimesShorter segmentsOf course, many visitors simply hike for a day or two on shorter sections of the trails, which feature dozens of desert valleys (known as wadis), sites of historic interest and named mountains.Atop my list of recommendations are hikes around Um Bogma, a ghost town atop rugged tablelands in the northwest corner of the trail, near the Suez Canal. An abandoned manganese mining camp run by the British in the 1900s during their occupation of Egypt, with breathtaking views of mountain ranges unfurling into the horizon, the tiered settlement of Um Bogma is frozen in time. Rusted steel cables stretch like ski lifts for miles down to the sea. Pitched-roof barracks have been stripped bare, as has a manager’s house with a wraparound porch overlooking a massive cliff that divides the Sinai.Members of the Hamada tribe, which oversees this section of the trail, extracted the manganese when the British occupied Egypt, until the 1950s. Egypt took over the Um Bogma mines for a number of years, but they were shut down, and the site abandoned, during the Israeli occupation of Sinai from 1967 to 1982.To some hikers, the scarred landscape is a legacy of colonial exploitation. To the Hamada, though, it was a source of jobs. And to Mr. Hoffler, it’s a rich opportunity for tourism. “I think this is just a jewel for the Hamada,” he told me.Julie Paterson, a trip organizer, and Jacobus Nederpelt, a hiker, at the summit of a 650-foot ascent through a mountain pass.Sima Diab for The New York TimesOther standout segments can be found in the Red Sea Mountains, a two-hour drive from the seaside city of Hurghada. Unlike in the Sinai, where you’re surrounded by mountains soon after landing in Sharm el Sheikh, the mountains in this section of mainland Egypt seem more jagged and imposing, clustered into massifs with fanglike peaks. Here, the government has not yet allowed overnight camping on the 100-mile Red Sea Mountain Trail, so the Bedouins can run only day hikes.The trail is contained within the territory of the Khushmaan clan of the Maaza tribe, and features Roman ruins and the mainland’s highest peak, Jebel Shayib el Banat, which rises to about 7,200 feet. The clan’s 1,500 families trace their origins to Arabia a few centuries ago, and most still live in the desert mountains, according to its leader, Sheikh Merayi Abu Musallem.At Wadi Abul Hassan, the hike starts up a steep slope blanketed by boulders and turns down into a secret enclosed wilderness — a narrow canyon lined with pink granite on one side and charcoal-colored granite on the other. Few outsiders have entered the wadi since the American academic Joseph J. Hobbs visited while researching his book “Bedouin Life in the Egyptian Wilderness,” in the early 1980s. The depth of perspective in the canyon is astonishing, especially when cottony white clouds in a sapphire sky and pyramid-shaped peaks in the distance add an extra dimension to the tableau.Elsewhere, the trek through Jebel Gattar and Wadi Nagaata is a strenuous climb up a series of massive granite shelves that reveal the historical origins of Christian monasticism. Atop the barren ledges are several hermit cells made of stacked rocks where, as early as the 300s, ascetics lived in extreme deprivation. Hikers can enter the silence of one of the small, semicircular chambers and imagine a contemplative looking out from the same entrance — toward a wall of beige granite honeycombed with scoop-like craters. On a nearby plateau stands a roofless, three-room stone building that was likely once a worship space, and a forerunner to the earliest monasteries, like Saint Catherine’s Monastery, built in the sixth century at the foot of Mount Sinai.Safety concernsDeveloping these trails was less about clearing new paths than it was about recovering existing routes that highlighted the myriad landscapes and legends. It was also about challenging the notion that the Sinai is a hostile and dangerous place. Egypt has been battling Islamist militants in North Sinai much of the past decade. The U.S. government advises against travel in Sinai. For the rest of Egypt, including the seaside resort of Sharm el Sheikh in South Sinai, the State Department advises citizens to “reconsider travel to Egypt due to terrorism.”According to the Sinai Trail’s website, “There has never been an attack on tourists in the interior Bedouin parts of South Sinai, where the Sinai Trail is.” Mr. Hoffler maintains that, in addition to Egyptian security forces across the peninsula, hikers have a safety net in an extensive Bedouin network that keeps tabs by camel, pickup and foot and shares information about visitors.One of our fellow hikers on the Sinai Trail’s western side, Leena El Samra, a 33-year-old from Cairo who works at a development bank, told me that some of her friends were worried about her taking the hike.Camels accompany hikers in places where support trucks can’t reach.Sima Diab for The New York Times“It’s a part of Egypt that’s ignored and we know nothing about, to some extent,” Ms. El Samra said, motoring through the gravelly sand. “This is a part of Egypt where you feel very safe with the people. It’s very nice, it’s pristine, it’s undiscovered. It’s very different than most of what we do all over Egypt. And I like building some muscles.”Ms. El Samra was among a small but growing circle of Egyptian adventure travelers and endurance athletes who turned to hiking, running and competing in triathlons after the failed revolution and subsequent military takeover early last decade. Many saw the activities as a way to release frustrations and exert their independence, or simply to discover their country.Hiking is still a niche activity in Egypt. The Sinai Trail hosted a few hundred hikers before the pandemic, which forced the trails closed for most of 2020. Numbers dwindled to the dozens in 2021 because of travel restrictions. But more hikers returned this year, including 70 people from around the world who arrived for a weekend hike in October tied to the United Nations annual climate conference, known as COP27, held the following month in Sharm el Sheikh. If all goes as planned, the Sinai Trail will host its first end-to-end hike of the 350-mile route next October.Returning to traditionsFor the Bedouins, the trails are a way to return to their roots and make a living in the mountains.During a drought in the 1990s, many Sinai Bedouins moved to coastal cities or farms in the Nile Valley for work, said Youssuf Barakat of the Alegat tribe, who spent two years with Mr. Hoffler mapping out the trail’s South Sinai routes and served as a guide during the COP27-related hike in October. Modernity and the collapse of tourism early in the last decade also pulled Sinai Bedouins away. Mr. Barakat, 36, returned to the mountains to work on the trail after working as a cook in his family’s restaurant in Abu Zenima on the west coast, he said.The Bedouins have been forced to change, Mr. Barakat told us after a dinner of grilled sheep and vegetable soup, which was followed by Mr. Barakat singing a traditional love song while thwacking a tabla drum.“We have internet, we have phones,” he said. Very quickly, he and his people have “become like the Egyptians,” he said.With the Sinai Trail, though, Mr. Barakat and his fellow tribespeople have an opportunity to return to their time-honored way of life.“We start step by step,” he said. “We hope in five, 10 years, the Bedouin life will come again.”A Bedouin guide makes tea and coffee over a campfire along the Sinai Trail.Sima Diab for The New York TimesPatrick Scott is a writer based in Thailand. You can follow his work on Instagram.Follow New York Times Travel on Instagram, Twitter and Facebook. And sign up for our weekly Travel Dispatch newsletter to receive expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places for a Changed World for 2022. More

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    Why It’s Hard to Predict What the Economy Will Look Like in 2023

    Historical data has always been critical to those who make economic predictions. But three years into the pandemic, America is suffering through an economic whiplash of sorts — and the past is proving anything but a reliable guide.Forecasts have been upended repeatedly. The economy’s rebound from the hit it incurred at the onset of the coronavirus was faster and stronger than expected. Shortages of goods then collided with strong demand to fuel a burst in inflation, one that has been both more extreme and more stubborn than anticipated.Now, after a year in which the Federal Reserve raised interest rates at the fastest pace since the 1980s to slow growth and bring those rapid price increases back under control, central bankers, Wall Street economists and Biden administration officials are all trying to guess what might lie ahead for the economy in 2023. Will the Fed’s policies spur a recession? Or will the economy gently cool down, taming high inflation in the process?With typical patterns still out of whack across big parts of the economy — including housing, cars and the labor market — the answer is far from certain, and past experience is almost sure to serve as a poor map.“I don’t think anyone knows whether we’re going to have a recession or not, and if we do, whether it’s going to be a deep one or not,” Jerome H. Powell, the Fed chair, said during a news conference last week. “It’s not knowable.”Doubt about what comes next is one reason the Fed is reorienting its monetary policy approach. Officials are now nudging borrowing costs up more gradually, giving them time to see how their policies are affecting the economy and how much more is needed to ensure that inflation returns to a slow and steady pace.As policymakers try to guess what lies ahead, the markets that have been most disrupted in recent years illustrate how big changes — some spurred by the pandemic, others tied to demographic shifts — continue to ricochet through the economy and make forecasting an exercise in uncertainty.Housing is strange.The pandemic era has repeatedly upended the housing market. The virus’s onset sent urbanites rushing for more space in suburban and small-city homes, a trend that was reinforced by rock-bottom mortgage rates.Then, reopenings from lockdown pulled people back toward cities. That helped push up rents in major metropolitan areas — which make up a big chunk of inflation — and, paired with the Fed’s rate increases, it has helped to sharply slow home buying in many markets.The question is what happens next. When it comes to the rental market, new lease data from Zillow and Apartment List suggests that conditions are cooling. The supply of available apartments and homes is also expected to climb in 2023 as long-awaited new residential buildings are finished.The Biden PresidencyHere’s where the president stands after the midterm elections.A New Primary Calendar: President Biden’s push to reorder the early presidential nominating states is likely to reward candidates who connect with the party’s most loyal voters.A Defining Issue: The shape of Russia’s war in Ukraine, and its effects on global markets, in the months and years to come could determine Mr. Biden’s political fate.Beating the Odds: Mr. Biden had the best midterms of any president in 20 years, but he still faces the sobering reality of a Republican-controlled House for the next two years.2024 Questions: Mr. Biden feels buoyant after the better-than-expected midterms, but as he turns 80, he confronts a decision on whether to run again that has some Democrats uncomfortable.“The frame I would put on 2023 is that we’re really going to enter the year back in a demand-constrained environment,” said Igor Popov, chief economist at Apartment List. “We’re going to see more apartments competing for fewer renters.”Mr. Popov expects “small growth” in rents in 2023, but he said that outlook is uncertain and hinges on the state of the labor market. If unemployment soars, rents could fall. If workers do really well, rents could rise more quickly.At the same time, existing leases are still catching up to the big run-up that has happened over the past year as tenants renew at higher rates. It is hard to guess both how much official inflation will converge with market-based rent data, and how long the trend will take to fully play out.“It could resolve in months, or it could take a year,” said Adam Ozimek, the chief economist at the Economic Innovation Group.Then there’s the market for owned housing, which does not count into inflation but does matter for the pace of overall economic growth. New home sales have fallen off a cliff as surging mortgage costs and the recent price run-up has put purchasing a house out of reach for many families. Even so, new mortgage applications have ticked up at the slightest sign of relief in recent months, evidence that would-be buyers are waiting on the sidelines.Demographics explain that underlying demand. Many millennials, the roughly 26- to 41-year-olds who are America’s largest generation, were entering peak home-buying ages right around the onset of the pandemic, and many are still in the market — which could put a floor under how much home prices will moderate.Plus, “sellers don’t have to sell,” said Mike Fratantoni, chief economist at the Mortgage Bankers Association, who expects home prices to be “flattish” next year as demand wanes but supply, which was already sharply limited after a decade of under-building following the 2007 housing crash, further pulls back.Given all the moving parts, many analysts are either much more optimistic or very pessimistic.“It’s almost comical to see the house price growth forecasts,” Mr. Popov said. “It’s either 3 percent growth or double-digit declines, with almost nothing in between.”The car market remains weird, too.The car market, a major driver of America’s initial inflation burst, is another economic puzzle. Years of too little supply have unleashed pent-up demand that is spurring unusual consumer and company behavior.Used cars were in especially short supply early in the pandemic, but are finally more widely available. The wholesale prices that dealers pay to stock their lots have plummeted in recent months.But car sellers are taking longer to pass those steep declines along to consumers than many economists had expected. Wholesale prices are down about 14.2 percent from a year ago, while consumer prices for used cars and trucks have declined only 3.3 percent. Many experts think that means bigger markdowns are coming, but there’s uncertainty about how soon and how steep.The new car market is even stranger. It remains undersupplied amid a parts shortages, though that is beginning to change as supply chain issues ease and production recovers. But both dealers and auto companies have made big profits during the low-supply, high-price era, and some have floated the idea of maintaining leaner production and inventories to keep their returns high.Jonathan Smoke, chief economist at Cox Automotive, thinks the normal laws of supply and demand will eventually reassert themselves as companies fight to retain customers. But getting back to normal will be a gradual, and perhaps halting, process.Still, “we’re at an inflection point,” Mr. Smoke said. “I think new vehicles are going to be less and less inflationary.”Labor markets are the most important question mark.Perhaps the most critical economic mystery is what will happen next in America’s labor market — and that is hard to game out.Part of the problem is that it’s not entirely clear what is happening in the labor market right now. Most signs suggest that hiring has been strong, job openings are plentiful, and wages are climbing at the fastest pace in decades. But there is a huge divergence between different data series: The Labor Department’s survey of households shows much weaker hiring growth than its survey of employers. Adding to the confusion, recent research has suggested that revisions could make today’s labor growth look much more lackluster.“It’s a huge mystery,” said Mr. Ozimek from the Economic Innovation Group. “You have to figure out which data are wrong.”That confusion makes guessing what comes next even more difficult. If, like most economists, one accepts that the labor market is hot right now, Fed policy is clearly poised to cool it down: The central bank has raised interest rates from near zero to about 4.4 percent this year, and expects to lift them to 5.1 percent in 2023.Those moves are explicitly aimed at slowing down hiring and wage growth, because central bankers believe that inflation for many types of services will remain elevated if pay gains remain as strong as they are now. Dentist offices and restaurants will, in theory, try to pass climbing labor costs along to consumers to protect their profits. But it is unclear how much the job market needs to slow to bring pay gains back to the more normal levels the Fed is looking for, and whether it can decelerate sufficiently without plunging America into a painful recession.Companies seem to be facing major labor shortages, partly as a wave of baby boomers retires, and Fed officials hope that will make firms more inclined to hang onto their workers even if the broader economy slows drastically. Some policymakers have suggested that such “labor hoarding” could help them achieve a soft landing that bucks historical precedent: Unemployment could rise notably without spiraling higher, cooling the economy without tipping it into a painful downturn.Typically, when the unemployment rate rises by more than 0.5 percentage points, like the Fed forecasts it will do next year, the jobless rate keeps rising. Loss of economic momentum feeds on itself, and the nation plunges into a recession. That pattern is so established it has a name: the Sahm Rule, for the economist Claudia Sahm.Yet Ms. Sahm herself said that if the axiom were to break down, this wacky economic moment would be the time. Consumers are sitting on unusual savings piles that could help sustain middle-class spending even through some job losses, preventing a downward spiral.“The thing that has never happened would have to happen,” she said. “But hey, things that have never happened have been happening left and right.” More