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    Jobs Aplenty, but a Shortage of Care Keeps Many Women From Benefiting

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    A lack of child care and elder care options has forced some women to limit their hours or sidelined them altogether, hurting their career prospects.A dearth of child care and elder care choices is causing many women to reorganize their working lives and prompting some to forgo jobs altogether, hurting the economy at a moment when companies are desperate to hire, and forcing trade-offs that could impair careers.Care workers have left the industry in large numbers amid the pandemic, shrinking the number of nursery and nursing home employees by hundreds of thousands. At the same time, coronavirus outbreaks have led to intermittent school shutdowns, which, in turn, have made care demands less predictable and increased the need for reliable backup options.Although plenty of men have also taken on increased care duties since the pandemic began, women perform most caregiving in America, according to the Labor Department. They have made a surprising return to the labor market in spite of that challenge.Federal data shows that the share of women participating in the labor market by working, or by looking for jobs, remains depressed relative to 2019, but it has recovered roughly as much as the share for men has. Mothers still work less than other women, but the gap between the two has narrowed to about the level that prevailed before the pandemic, an analysis by the Federal Reserve found.Yet those signs of a comeback hide strains beneath the surface. A deeper dive into the Labor Department’s monthly survey of households shows that unmarried women without college degrees who have young children have returned to work more slowly than others, a sign that the shortage of care is making them particularly vulnerable.Self-employment has also surged among mothers, suggesting that many women are finding ways to make work more flexible as they scramble to balance care responsibilities with their need to earn money. Other women talk about putting in fewer hours and juggling increased workloads.In February, about 39 percent of women with children younger than 5 told Stanford’s RAPID Survey that they had quit their jobs or reduced their hours since the pandemic began, up from 33 percent at the same time last year. More than 90 percent of those women said they did so of their own accord, not because they were laid off or had their hours cut. Last year, that number was 65 percent.Change in women’s employment rate since Jan. 2020

    Notes: Three-month rolling average of seasonally adjusted data for women ages 20-44. “Young children” are under age 5. Women with older children not shown. College graduates have bachelor’s degrees.Source: Current Population Survey via IPUMSBy The New York TimesThose forced to cut back on work could face lasting disadvantages. They are missing out on an unusual moment of worker power, in which many employees are bargaining for higher wages or switching to more lucrative jobs. Right now, the fields where women are most concentrated — including service sector jobs in hospitality and health care — have some of the most openings and the most rapid pay growth.“I think it will be really interesting to see what the long-term consequences are on mothers’ career opportunities,” said Ariane Hegewisch, the program director in employment and earnings at the Institute for Women’s Policy Research. “Women have continued to work, but they clearly had to cut back.”The State of Jobs in the United StatesJob gains continue to maintain their impressive run, even as government policymakers took steps to cool the economy and ease inflation.May Jobs Report: U.S. employers added 390,000 jobs and the unemployment rate remained steady at 3.6 percent ​​in the fifth month of 2022.Downsides of a Hot Market: Students are forgoing degrees in favor of the attractive positions offered by employers desperate to hire. That could come back to haunt them.Slowing Down: Economists and policymakers are beginning to argue that what the economy needs right now is less hiring and less wage growth. Here’s why.Opportunities for Teenagers: Jobs for high school and college students are expected to be plentiful this summer, and a large market means better pay.America’s long-running caregiving shortage, for both children and older adults, was compounded by the pandemic.The professional caregiving work force — also disproportionately female — hasn’t recovered. More than one child care worker in 10 hasn’t returned, according to the Bureau of Labor Statistics (although that data may not capture all the single-employee, home-based operators that make up a huge part of the sector). The number of nursing home workers remains 11.5 percent below its level in February 2020. Together, the two categories represent a loss of 500,000 jobs.“For women, that’s the double whammy — most of those workers are women, and most of the people who need those supports to enter the work force themselves are women,” said Katherine Gallagher Robbins, a senior fellow with the National Partnership for Women and Families.At the same time, there is new demand for care. After a decrease in the number of births early in the pandemic, nearly 3.7 million people were born last year, up 1 percent from 2020 and the first such increase since 2014.Christy Charny, a college administrative assistant in Fort Collins, Colo., recently talked to her manager about dialing back her hours from full time to part time. She likes her job and needs it for the health insurance it provides, but her 12-week-old daughter was having trouble nursing, and paying for full-time infant care was a nonstarter for her and her husband.“There is no way that we can afford $1,500 a month for child care on our full-time salaries,” said Ms. Charny, 32. “We would go into debt just so that I could work full time.”For a while, she was struggling to find any child care at all. She couldn’t afford full-time help, and the day care center where she had put down a deposit wouldn’t give her a discount if she used it only part time. She was frantically looking for other options when good news arrived: The most affordable nursery in her area, where she had been on the waiting list since October 2021, had a part-time opening.The days — Tuesday, Thursday and Friday — were not exactly right for her professional schedule, but the place was just $246 per week, so she was going to try it.“I know we can make it work if we’re careful and we cut back on other expenses,” she said. Ms. Charny’s husband sells shoes at REI, and together they make about $60,000 before taxes.Economists have long identified a lack of available and affordable child care as a reason that American women do not work more, sometimes by comparing the United States with Canada — which is economically similar in many ways but has more generous child care and parental leave policies and a higher rate of female employment. The same is true for parts of Europe.“Until 1995, the U.S. was the world’s leader in terms of female labor force participation,” said Claudia Goldin, an economist at Harvard. “Now, this host of countries that we used to think were backward in terms of gender norms have exceeded the U.S.”And it is no surprise that the burden of care without professional help falls on workers with less education, who tend to earn less.There is a “financial trade-off between work and child care” that hinges on “what share of your income that child care eats up,” said Sarah House, an economist at Wells Fargo. “It’s a much smaller share if you’re a working professional with a six-figure salary than if you are working a restaurant job and barely clearing $30,000.”Stanford’s RAPID Survey also showed that most mothers who cut back on work did so even though they didn’t have adequate income without it. And for those staying on the job, volatility in the child care industry can add considerable stress.“If you were hanging on to an official home-based provider to take your kid so you could go to your work, and that person closed their doors, you probably couldn’t afford to stop working,” said the survey’s director, Philip Fisher. “So you’d have to rely on anything you could pull together.”As some mothers pull back, there are implications for the economy. Employers are missing a key source of labor at a time when they have nearly two job openings for every unemployed person.Washington has tried to offset the problem to allow more parents to return to work. The American Rescue Plan, enacted last year, supplied $39 billion to help child care providers stay open, and probably prevented even larger reductions in care. Some states have supplemented that money, while others have relaxed licensing requirements and allowed a bigger ratio of children to care providers.The White House’s Build Back Better legislation included $400 billion for child care and prekindergarten, and a recent study by a team of economists estimated a similar plan could raise the rate at which mothers are employed by six percentage points. But the legislation floundered as concerns about spending mounted.Finding care for older adults also grew more difficult after Covid-19 ripped through nursing homes and sent nurses fleeing the bedside.Because of its dedicated federal funding stream, the elder care industry is larger and more formalized than the child care sector. But its work force is similarly low paid, and has gone through a harrowing time during the pandemic.Dorinda McDougald has been a clinical nursing assistant at Ellicott Center in Buffalo for 25 years.Malik Rainey for The New York TimesAccording to a recent survey conducted by ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​the American Health Care Association, a nursing home trade group, wages for nurses have increased by between 28 percent and 34 percent since the pandemic began. But only about 5 percent of the nurses who left have returned to such institutionalized settings, according to federal data. Among the challenges for such centers is the tight labor market.Dorinda McDougald is one of those who have stuck it out. She has been a clinical nursing assistant at Ellicott Center in Buffalo for 25 years and makes about $18 an hour.“I stay there for the residents, because they deserve quality care,” she said. But not everyone makes the same choice: One of Ms. McDougald’s colleagues recently left to work at a Red Lobster. “You’d have to compete with the area,” Ms. McDougald said. “Everybody else is paying $16, $17, $18.”Data from the Centers for Disease Control and Prevention shows that about 31 percent of nursing homes are reporting staffing shortages, which can prevent them from taking in more residents.Part of that reflects a shift toward home-based care, which both workers and patients have found safer and otherwise more appealing. Nursing home workers have also left for staffing agencies and hospitals, which offer better pay and more opportunities for advancement.Among the states reporting the most widespread staffing shortages is Minnesota, where 69 percent of nursing homes say they don’t have enough caregivers. That state has a higher-than-average share of nonprofit facilities that depend on Medicaid and Medicare reimbursements, which the industry says have not been adjusted for the increased cost of operations.That’s where Staci Drouillard, 54, has been trying to find a place for her parents.She lives in Grand Marais, on Lake Superior, two hours northeast of Duluth. Her father, who is 87 years old and a lifelong resident of the town, has dementia. Her mother, 83, cared for him until she had a series of strokes.Both parents worked, but they weren’t able to build enough savings to afford home-based care, even if a local aide were available. The county’s only nursing home has 37 beds, but six are empty because of staff vacancies, according to the facility’s chief executive.Now, the task falls to Ms. Drouillard, who goes to her parents’ house most days. After getting a promotion at the radio station where she works, she shifted to a position that is home-based, with fewer hours, lower pay and less authority, as caregiving consumed more and more of her time.“As I watched my parents’ health deteriorate and decline, I realized I needed to pivot to a job that has less responsibility,” Ms. Drouillard said. “Their care is kind of like having another job, except you don’t really know what hours you’re going to work.” More

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    Fed Moves Toward Another Big Rate Increase as Inflation Lingers

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    As the Federal Reserve battles rapid inflation, officials are likely to stay on an aggressive path even as signs of economic cooling emerge.WASHINGTON — The Federal Reserve, determined to choke off rapid inflation before it becomes a permanent feature of the American economy, is steering toward another three-quarter-point interest rate increase later this month even as the economy shows early signs of slowing and recession fears mount.Economic data suggest that the United States could be headed for a rough road: Consumer confidence has plummeted, the economy could post two straight quarters of negative growth, new factory orders have sagged and oil and gas commodity prices have dipped sharply lower this week as investors fear an impending downturn.But that weakening is unlikely to dissuade central bankers. Some degree of economic slowdown would be welcome news for the Fed — which is actively trying to cool the economy — and a commitment to restoring price stability could keep officials on an aggressive policy path.Inflation measures are running at or near the fastest pace in four decades, and the job market, while moderating somewhat, remains unusually strong, with 1.9 available jobs for every unemployed worker. Fed policymakers are likely to focus on those factors as they head into their July meeting, especially because their policy interest rate — which guides how expensive it is to borrow money — is still low enough that it is likely spurring economic activity rather than subtracting from it.Minutes from the Fed’s June meeting, released Wednesday, made it clear that officials are eager to move rates up to a point where they are weighing on growth as policymakers ramp up their battle against inflation.The central bank will announce its next rate decision on July 27, and several key data points are set for release between now and then, including the latest jobs numbers for June and updated Consumer Price Index inflation figures — so the size of the move is not set in stone. But assuming the economy remains strong, inflation remains high and glimmers of moderation remain far from conclusive, a big rate move may well be in store.The Fed chair, Jerome H. Powell, has said that central bankers will debate between a 0.5- or 0.75-percentage-point increase at the coming gathering, but officials have begun to line up behind the more rapid pace of action if recent economic trends hold.“If conditions were exactly the way they were today going into that meeting — if the meeting were today — I would be advocating for 75 because I haven’t seen the kind of numbers on the inflation side that I need to see,” Loretta J. Mester, the president of the Federal Reserve Bank of Cleveland, said during a television interview last week.The Fed raised interest rates by 0.75 percentage points in June, its first move of that size since 1994 and one fueled by a growing concern that fast inflation had failed to fade as expected and was at risk of becoming a more permanent feature of the economy.While the big increase came suddenly — investors did not expect such a large change until right before the meeting — policymakers have begun to signal earlier on in the decision-making process that they are in favor of going big in July.Part of the amped-up urgency may stem from a recognition that the Fed is behind the curve and trying to fight inflation when interest rates, while rising quickly, remain relatively low, economists said.If Americans come to believe that inflation will remain high year after year, they might demand bigger wage increases to cover those anticipated costs.Scott McIntyre for The New York Times“It is starting to look like 75 is the number,” said Michael Feroli, the chief U.S. economist at JPMorgan Chase. “We’d need a serious disappointment for them to downshift at this meeting.”Fed interest rates are now set to a range of 1.5 to 1.75 percent, which is much higher than their near-zero setting at the start of 2022 but still probably low enough to stoke the economy. Officials have said that they want to “expeditiously” lift rates to the point at which they begin to weigh on growth — which they estimate is a rate around 2.5 percent.The way they see it, “with inflation being this high, with the labor market being this tight, there’s no need to be adding accommodation at this point,” said Alan Detmeister, a senior economist at UBS who spent more than a decade as an economist and section chief at the Fed’s Board of Governors. “That’s why they’re moving up so aggressively.”Central bankers know a recession is a possibility as they raise interest rates quickly, though they have said one is not inevitable. But they have signaled that they are willing to inflict some economic pain if that is what is needed to wrestle inflation back down.Mr. Powell has repeatedly stressed that whether the Fed can gently slow the economy and cool inflation will hinge on factors outside of its control, like the trajectory of the war in Ukraine and global supply chain snarls.For now, Fed officials are unlikely to interpret nascent evidence of a cooling economy as a surefire sign that it is tipping into recession. The unemployment rate is hovering near the lowest level in 50 years, the economy has gained an average of nearly 500,000 jobs per month so far in 2022 and consumer spending — while cracking slightly under the weight of inflation — has been relatively strong.Meanwhile, officials have been unnerved by both the speed and the staying power of inflation. The Consumer Price Index measure picked up by 8.6 percent over the year through May, and several economists said it probably continued to accelerate on a yearly basis into the June report, which is set for release on July 13. Omair Sharif, the founder of Inflation Insights, estimated that it could come in around 8.8 percent.“You do probably get a few months of moderation after we get this June report,” he said.The Fed’s preferred inflation measure, the Personal Consumption Expenditures index, may have already peaked, economists said. But it still climbed by 6.3 percent over the year through May, more than three times the central bank’s 2 percent target. Many households are struggling to keep up with the rising cost of housing, food and transportation.While there are encouraging signs that inflation might slow soon — inventories have built up at retailers, global commodity gas prices have fallen this week and consumer demand for some goods may be beginning to slow — those indicators may do little to comfort central bankers at this stage.Inflation F.A.Q.Card 1 of 5What is inflation? More

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    Job Openings Eased, in a Sign of the Cooling Labor Market

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    Employers became slightly less desperate for workers in May as job openings declined for the second straight month from a record high in March.The number of open positions fell to 11.3 million, down from an upwardly revised 11.6 million in April, the Labor Department said Wednesday in the monthly Job Openings and Labor Turnover Survey. That still leaves nearly two jobs available for every unemployed person in the United States.The job openings rate jumped in retail, hotels and restaurants as Americans returned to summer leisure spending and employers struggled to keep up.By most indications, the labor market has remained very strong, with initial claims for unemployment insurance only inching up in recent months. In the May survey, the share of the work force quitting jobs remained steady, as did the share who were laid off.Concern over finding enough qualified workers increased among business leaders in the second quarter of the year, according to a survey of chief financial officers by the Federal Reserve Bank of Richmond.“The labor shortage is absolutely top of mind for every industry I talk to,” said Dave Gilbertson, vice president of UKG, the payroll and shift management software company, which monitors four million hourly workers. “Every single one of them is struggling to hire. So far I haven’t seen job openings come down. A lot of those jobs have been open for a long time.”The Federal Reserve has been trying to stem inflation by using interest rates to slow down business activity just enough that the shortfall of workers becomes less of a constraint on productive capacity, but without throwing large numbers of people out of work. The gradual decrease in job openings, while layoffs remain low, is evidence that its strategy may be working. More

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    When Where You Work Determines if You Can Get an Abortion

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    After the Dobbs v. Jackson decision, many women are discovering that their employer can shape major decisions in their lives even more than it did a week ago.When Breanna Dietrich was 18 and working at a restaurant in West Virginia, she got pregnant. The father was a man she knew she wouldn’t marry. She considered getting an abortion. But the nearest clinic was four hours away and she couldn’t afford to take off work — so she had the baby girl.That girl is now 17 and working at a restaurant chain that has not told its employees whether it will cover abortion-related travel expenses, though abortion is now prohibited in West Virginia. This past week, Ms. Dietrich urged her daughter to find an employer that would cover the expense.“It would be awesome for her to move to a state that offers it, or at least work for a company that says, ‘Hey, we’ll foot the bill,’” Ms. Dietrich said, recalling her own struggle years ago to consider the logistics of an abortion. “How was I, at 18, going to be able to drive four hours away, pay for it, take off work? There would’ve been no way.”In the week since the Supreme Court overturned Roe v. Wade, ending nearly 50 years of federal abortion rights, dozens of large U.S. companies have said they will cover expenses for employees who need to travel out of state for abortions. Some companies even said they would relocate employees from states where abortion is banned.Some business leaders now talk about access to reproductive health care as a benefit, akin to dental or egg-freezing coverage. Many of the companies quickest to come forward are those known generally for generous policies on paid leave, health care and other perks that proliferate in competitive industries. Abortion-related benefits are more divisive, of course, given that 37 percent of Americans say abortion should be illegal in all or most cases.As the post-Dobbs v. Jackson landscape comes into focus, many women are discovering that, even more so than a week ago, where they happen to work can determine the shape of their lives outside work, too. Their job could be the difference between being able to get an abortion or not.Employers have long held sway over workers’ reproductive health care — whether they can take paid leave to have a baby, afford child care or get access to birth control. About half of Americans have health care tied to their employers. But the involvement corporations now have in abortion access illuminates a stark divide.For high-income women, an employer’s offer to cover abortion-related travel might be viewed partly as a signal of psychological support or a political stance. For women in low-income jobs, a company’s policy will determine whether or not they can afford to cross state lines for an abortion.About 40 percent of American women cite financial reasons as a factor in their decision to get an abortion, yet many of the companies that employ the country’s low-wage workers have not announced that they will cover out-of-state abortion expenses. Some of the largest companies in retail and hospitality, industries whose work force is predominantly female, haven’t made a statement on the question.Walmart, the nation’s largest private employer, has not said if it will cover travel for out-of-state abortions.Shutterstock“In low-wage sectors, this is going to become one of those issues where people are leaving low-paying jobs for slightly better-paying jobs,” said Bianca Agustin, director of corporate accountability for United for Respect, a nonprofit labor advocacy group. “Given the spread of companies that have public commitments, I imagine there will be some movement on this.”Walmart, Darden Restaurants, McDonald’s, Home Depot, Hilton, Dollar General and FedEx, which together employ millions of people across the country, have not said whether they will cover travel for out-of-state abortions. A spokeswoman for Walmart, which has 1.7 million U.S. workers, said the company regularly reviews its benefits based on demand from employees, and the company is now “looking at the evolving federal and state landscape” as it considers its offerings. The rest of the companies listed did not respond to multiple requests for comment.“We are working thoughtfully and diligently to figure out the best path forward, guided by our desire to support our associates, all of our associates,” wrote Doug McMillon, Walmart’s chief executive, in a memo to staff on Friday.Amazon, the country’s second-largest private employer after Walmart, said it would cover out-of-state abortion travel for its employees, most of whom are hourly workers. But that benefit applies to employees on its health care plan, not the contractors who make up a substantial portion of its work force, such as its vast network of delivery drivers.As the list of companies covering abortion-related travel grows longer, some workers wonder why their employers won’t do the same. Isabela Burrows, 19, who works at a PetSmart in Howell, Mich., learned that Roe v. Wade had been overturned from a customer last week and grew frustrated that her company hadn’t said anything. Michigan has an abortion ban that has been blocked in court and that Democratic leaders have said they will not enforce.“I wish they would do something,” Ms. Burrows said of her employer. She said her greatest source of relief has come from reading about the companies that have announced new reproductive health care benefits. “They cared enough that they would send you to go get the help and care you need.”PetSmart has not announced plans to cover abortion-related travel for its employees, and the company did not respond to a request for comment on whether it plans to do so.A company’s policies on reproductive health care access could affect how desirable it is to job candidates in what remains a tight labor market. A survey of college-educated workers, commissioned by the Tara Health Foundation, found that 70 percent said companies should address abortion access as part of their gender equity efforts. A survey from Morning Consult, also commissioned by the Tara Health Foundation, found that 71 percent of adults said people should consider a state’s social policies when deciding whether to move there.Vanessa Burbano, a management professor at Columbia Business School, said that for workers who live in states where abortion is no longer legal, the policies their employers set do more than just signal a company’s politics.“There’s a tangible, real world implication for your own personal health care,” she said, adding that employers are striking a delicate balance. “They’re trying to walk the very fine line of not making these big, broad, public blanket statements about the issue while simultaneously trying to address concerns of their employees.”Gina Lindsey, 48, a public-school teacher, recalled that when she sent her daughter off to college four years ago, she advised her to make pay, benefits and sense of purpose priorities when looking for a job. Now Ms. Lindsey urges her daughter to take into consideration the employer’s approach toward out-of-state abortion coverage.“That’s going to become part of the calculus,” said Ms. Lindsey, who lives in Ohio, where abortion is now banned after six weeks of pregnancy.She worries, though, about the many people her daughter’s age whose employers will not cover their abortion-related travel expenses. “How many people are able to get a job at Google?” she asked. “How many people are able to get a job at Disney? How many people truly have that opportunity, especially in states where the bans are in place?”Most people don’t plan to need abortion-related travel benefits: “Very rarely do people think that they themselves are going to need an abortion,” said Diana Greene Foster, a demographer at the University of California, San Francisco, and the principal investigator of the Turnaway Study, which looked at the economic consequences of having or being denied an abortion. “I doubt they would switch jobs because they think they themselves will be affected.”And if they do want to switch, finding a job with expanded reproductive health benefits can be difficult. Rhonda Sharpe, an economist and the president of the Women’s Institute for Science, Equity and Race, said the women in low-wage jobs most likely to need these benefits are least able to conduct a job search — and cover the expenses in child care and time off work that can come with it.Relying on employers to bridge the gap between workers and reproductive health services will become more difficult, legal experts warn, as anti-abortion groups say they will try to ban out-of-state abortions and penalize the companies that fund them. While employers determine how to actually roll out their new travel policies, weighing issues related to privacy and taxes, they’re also facing the prospect of legal challenges.“The employers we’ve been counseling are looking at it all different ways and trying to minimize the risk to everyone,” said Amy Gordon, an employee benefits partner at the law firm Winston & Strawn.Ms. Dietrich, in West Virginia, had to quit her food service job last year because of health issues related to another pregnancy. Her employer at the time didn’t offer maternity leave. She wants to help her daughter find a workplace that’s more caring — and they’re starting by looking at those that will cover abortion-related travel.“It shows they’re listening to workers,” she said. “They’re saying, ‘Hey, look, I will help you to get where you need. You’re not trying to figure it out yourself.’” More

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    As Dockworkers Near Contract’s End, Many Others Have a Stake

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    LOS ANGELES — David Alvarado barreled south along the highway, staring through the windshield of his semi truck toward the towering cranes along the coastline.He had made the same 30-minute trek to the Port of Los Angeles twice that day; if things went well, he would make it twice more. Averaging four pickups and deliveries a day, Mr. Alvarado has learned, is what it takes to give his wife and three children a comfortable life.“This has been my life — it’s helped me support a family,” said Mr. Alvarado, who for 17 years has hauled cargo between warehouses across Southern California and the twin ports of Los Angeles and Long Beach, a global hub that handles 40 percent of the nation’s seaborne imports.He weathered the blow to his paycheck early in the pandemic when he was idling for six hours a day, waiting for cargo to be loaded off ships and onto his truck. Now the ports are bustling again, but there is a new source of anxiety: the imminent expiration of the union contract for dockworkers along the West Coast.If negotiations fail to head off a slowdown, a strike or a lockout, he said, “it will crush me financially.”The outcome will be crucial not only for the union dockworkers and port operators, but also for the ecosystem of workers surrounding the ports like Mr. Alvarado, and for a global supply chain reeling from coronavirus lockdowns and Russia’s invasion of Ukraine. Inflation’s surge to the highest rate in more than four decades is due, in part, to supply chain complications.The contract between the International Longshore and Warehouse Union, which represents 22,000 workers at 29 ports from San Diego to Seattle, and the Pacific Maritime Association, representing the shipping terminals, is set to expire on Friday. The union members primarily operate machinery like cranes and forklifts that move cargo containers on and off ships.In a statement this month, representatives of the two sides said that they didn’t expect a deal by the deadline but that they were dedicated to working toward an agreement.The negotiations have centered largely on whether to increase wages for the unionized workers, whose average salaries are in the low six figures, and expanding automation, such as using robots to move cargo containers, to speed up production, a priority for shipping companies.“It will crush me financially,” David Alvarado said of any work stoppage.Stella Kalinina for The New York TimesTrucks lined up to enter the Port of Los Angeles. Any slowdown, strike or lockout could further snarl the global supply chain.Stella Kalinina for The New York Times“Automation allows greater densification at existing port terminals, enabling greater cargo throughput and continued cargo growth over time,” Jim McKenna, the chief executive of the Pacific Maritime Association, said in a recent video statement on the negotiations.In an open letter posted on Facebook last month, the union president, Willie Adams, attacked moving toward automation, saying it would translate to lost jobs and prioritizes foreign profits over “what’s best for America.”The State of Jobs in the United StatesJob gains continue to maintain their impressive run, even as government policymakers took steps to cool the economy and ease inflation.May Jobs Report: U.S. employers added 390,000 jobs and the unemployment rate remained steady at 3.6 percent ​​in the fifth month of 2022.Downsides of a Hot Market: Students are forgoing degrees in favor of the attractive positions offered by employers desperate to hire. That could come back to haunt them.Slowing Down: Economists and policymakers are beginning to argue that what the economy needs right now is less hiring and less wage growth. Here’s why.Opportunities for Teenagers: Jobs for high school and college students are expected to be plentiful this summer, and a large market means better pay.“Automation,” Mr. Adams wrote, “poses a great national security risk as it places our ports at risk of being hacked as other automated ports have experienced.”As the negotiations, which began in early May, continue, record levels of cargo have arrived here.In May, the Port of Los Angeles had its third-busiest month ever, handling nearly one million shipping container units, largely stocked with imports from Asia. Twenty-one ships were waiting to dock outside the local ports this week, down from 109 in January, according to the Marine Exchange of Southern California.On a recent trip here, President Biden — who authorized a plan last year to keep the Port of Los Angeles open 24 hours a day — met with negotiators to urge a swift agreement. Leaders on both sides say Mr. Biden has worked behind the scenes on the matter, hoping to avoid delays.When a breakdown in talks resulted in an 11-day lockout in 2002, the U.S. economy lost an estimated $11 billion. President George W. Bush eventually intervened, and the lockout was lifted. In 2015, when negotiations went on for nine months, the Obama administration intervened after the standoff led to a work slowdown and congestion at West Coast ports.Mr. Biden’s early intervention could help stave off severe backlogs, said Geraldine Knatz, a professor of the practice of policy and engineering at the University of Southern California.“In the past, the federal government would swoop in at the end when negotiations were at a stalemate,” said Ms. Knatz, who was executive director of the Port of Los Angeles from 2006 to 2014. “The relationship that developed between the ports and the Biden administration as a result of the supply chain crisis is something that did not exist before.”The contract between the International Longshore and Warehouse Union and the Pacific Maritime Association is set to expire this week. Stella Kalinina for The New York TimesEven so, contingency plans are in place, said Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation. Some retailers began pushing up their timetables months ago, ordering supplies long before they needed them, he said, and using ports along the East and Gulf Coasts when feasible.In an interview, Gene Seroka, executive director of the Port of Los Angeles, said he didn’t believe the looming contract deadline would lead to any delays: All the parties involved, he said, know that it’s already an exceptionally busy time for the region.Retail imports account for 75 percent of all cargo coming into the ports, and with back-to-school and holiday shopping seasons nearing, Mr. Seroka said he did not expect cargo volumes to shrink to more typical levels until next year.“Everyone is working as hard as they can,” Mr. Seroka said.But for some retailers, the current limbo brings back painful memories.In early 2015, as delays arose during contract talks, Charlie Woo laid off more than 600 seasonal workers from his company, Megatoys.“It was rough back then,” Mr. Woo said on a recent morning from his 330,000-square-foot warehouse in Commerce, Calif., an industrial city in Los Angeles County not far from the ports.Mr. Woo started Megatoys in 1989 and now imports around 1,000 cargo containers from China every year. The 40-foot containers come filled with small toys like plastic Easter eggs and miniature rubber soccer balls and basketballs, which his employees package into baskets sold at grocery stores and bigger outlets like Walmart and Target.During the pandemic disruptions last fall, some of his shipments were stalled by nearly three months — delays that ultimately translated into a 5 percent drop in sales for his company, which Mr. Woo said brings in tens of millions of dollars annually.He’s bracing for another hard year.“I expect problems; I just don’t know how big the problem will be,” said Mr. Woo, who also owns a manufacturing plant near Shenzhen, China, and said he hoped more U.S. terminals moved toward more automation.“We must find innovative solutions to catch up with the ports in Asia,” Mr. Woo said.Charlie Woo started Megatoys in 1989 and now imports around 1,000 cargo containers from China every year. Stella Kalinina for The New York TimesShipping containers at the Port of Los Angeles. The current limbo brings back painful memories for some retailers.Stella Kalinina for The New York TimesOn a recent afternoon, Mr. Alvarado, the truck driver, reminisced about the early days of the career he’d been born into.During summer vacations as a little boy, he’d ride shotgun with his father, who has driven a semi truck for nearly four decades at the ports, and they’d listen to Dodger baseball games together.“This is all I ever wanted to be,” Mr. Alvarado, 38, said. Over the years, he has seen many childhood friends move away because they could not afford to live here.It hasn’t always been easy for him, either. Last fall, with more than 80 cargo carriers anchored off the coast here, in part because of the lingering pandemic and a surge of imports ahead of the holiday season, he sometimes waited for hours before he finally got a load, said Mr. Alvarado, who is among the roughly 21,000 truck drivers authorized to pick up cargo at the ports.For an independent contractor, time is money: Mr. Alvarado works 16 hours some weekdays and aims to pick up and drop off four loads each day. When he does that consistently, he said, he can make up to $4,000 a week, before expenses.During the worst of the pandemic delays, he was lucky to get two loads a day, and although things have improved in recent months, he now frets about fuel prices.“Inflation has been intense,” he said.Filling up with 220 gallons for the week now typically costs $1,200, double that of several months ago, Mr. Alvarado said.“It all starts to add up,” he said. “You wonder if you should think about doing something else.”As for the prospects in the labor talks, Mr. Alvarado said he was trying to remain optimistic. The union workers, he said, remind him of his own family: men and women from blue-collar upbringings, many of them Latino with deep family ties to the ports. A work stoppage would be painful for many of them, too.“It will hurt all Americans,” he said.As he drove past the ports, Mr. Alvarado turned his truck into a warehouse parking lot, where the multicolored containers lined the asphalt like a row of neatly arranged Lego blocks.It was his third load of the day, and for this round, he didn’t have to wait on the longshoremen to load the carrier onto his truck. Instead, he backed his semi up to a chassis, and the blue container snapped into place.He pulled up Google Maps on his iPhone and looked at the distance to the drop-off in Fontana, Calif.: 67 miles, an hour and half.It might, Mr. Alvarado said, end up being a four-load day after all. More

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    Fed Confronts a ‘New World’ of Inflation

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    Central banks had a longstanding playbook for how inflation worked. In the postpandemic era, all bets are off.Federal Reserve officials are questioning whether their longstanding assumptions about inflation still apply as price gains remain stubbornly and surprisingly rapid — a bout of economic soul-searching that could have big implications for the American economy.For years, Fed policymakers had a playbook for handling inflation surprises: They mostly ignored disruptions to the supply of goods and services when setting monetary policy, assuming they would work themselves out. The Fed guides the economy by adjusting interest rates, which influence demand, so keeping consumption and business activity chugging along at an even keel was the primary focus.But after the global economy has been rocked for two years by nonstop supply crises — from shipping snarls to the war in Ukraine — central bankers have stopped waiting for normality to return. They have been raising interest rates aggressively to slow down consumer and business spending and cool the economy. And they are reassessing how inflation might evolve in a world where it seems that the problems may just keep coming.If the Fed determines that shocks are unlikely to ease — or will take so long that they leave inflation elevated for years — the result could be an even more aggressive series of rate increases as policymakers try to quash demand into balance with a more limited supply of goods and services. That painful process would ramp up the risk of a recession that would cost jobs and shutter businesses.“The disinflationary forces of the last quarter-century have been replaced, at least temporarily, by a whole different set of forces,” Jerome H. Powell, the Fed chair, said during Senate testimony on Wednesday. “The real question is: How long will this new set of forces be sustained? We can’t know that. But in the meantime, our job is to find maximum employment and price stability in this new economy.”When prices began to pick up rapidly in early 2021, top Fed policymakers joined many outside economists in predicting that the change would be “transitory.” Inflation had been slow in America for most of the 21st century, weighed down by long-running trends like the aging of the population and globalization. It seemed that one-off pandemic shocks, especially a used-car shortage and ocean shipping issues, should fade with time and allow that trend to return.But by late last year, central bankers were beginning to rethink their initial call. Supply chain problems were becoming worse, not better. Instead of fading, price increases had accelerated and broadened beyond a few pandemic-affected categories. Economists have made a monthly habit of predicting that inflation has peaked only to see it continue to accelerate.Now, Fed policymakers are analyzing what so many people missed, and what it says about the unrelenting inflation burst.“Of course we’ve been looking very carefully and hard at why inflation picked up so much more than expected last year and why it proved so persistent,” Mr. Powell said at a news conference last week. “It’s hard to overstate the extent of interest we have in that question, morning, noon and night.”The Fed has been reacting. It slowed and then halted its pandemic-era bond purchases this winter and spring, and it is now shrinking its asset holdings to take a little bit of juice out of markets and the economy. The central bank has also ramped up its plans to raise interest rates, lifting its main policy rate by a quarter point in March, half a point in May and three-quarters of a point last week while signaling more to come.Understand Inflation and How It Impacts YouInflation 101: What’s driving inflation in the United States? What can slow the rapid price gains? Here’s what to know.Inflation Calculator: How you experience inflation can vary greatly depending on your spending habits. Answer these seven questions to estimate your personal inflation rate.An Economic Cliff: Inflation is expected to remain high later this year even as the economy slows and layoffs rise. For many Americans, it’s going to hurt.Greedflation: Some experts say that big corporations are supercharging inflation by jacking up prices. We take a closer look at the issue. It is making those decisions without much of an established game plan, given the surprising ways in which the economy is behaving.“We’ve spent a lot of time — as a committee, and I’ve spent a lot of time personally — looking at history,” Patrick Harker, president of the Federal Reserve Bank of Philadelphia, said in an interview on Wednesday. “Nothing quite fits this situation.”A recruiter at a job fair in North Miami Beach, Fla., last week. Labor shortages are pushing up wages, which is likely contributing to higher inflation. Scott McIntyre for The New York TimesGas prices have helped drive inflation higher.Scott McIntyre for The New York TimesThe economic era before the pandemic was stable and predictable. America and many developed economies spent those decades grappling with inflation that seemed to be slipping ever lower. Consumers had come to expect prices to remain relatively stable, and executives knew that they could not charge a lot more without scaring them away.Shocks to supply that were outside the Fed’s control, like oil or food shortages, might push up prices for a while, but they typically faded quickly. Now, the whole idea of “transient” supply shocks is being called into question.The global supply of goods has been curtailed by one issue after another since the onset of the pandemic, from lockdowns in China that slowed the production of computer chips and other goods to Russia’s invasion of Ukraine, which has limited gas and food availability.At the same time, demand has been heady, boosted by government pandemic relief checks and a strong labor market. Businesses have been able to charge more for their limited supply, and consumer prices have been picking up sharply, climbing 8.6 percent over the year through May.Research from the Federal Reserve Bank of San Francisco released this week found that demand was driving about one-third of the current jump in inflation, while issues tied to supply or some ambiguous mix of supply-and-demand factors were driving about two-thirds.That means that returning demand to more normal levels should help ease inflation somewhat, even if supply in key markets remain roiled. The Fed has been clear that it cannot directly lower oil and gas prices, for instance, because those costs turn more on the global supply than they do on domestic demand.“There’s really not anything that we can do about oil prices,” Mr. Powell told senators on Wednesday. Still, he added later, “there is a job to moderating demand so that it can be in better balance with supply.”Inflation F.A.Q.Card 1 of 5What is inflation? More

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    Starbucks Executive, Prominent in Push Against Union Drive, Will Leave

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    Starbucks said Friday that an executive who played a key role in the company’s response to a growing union campaign would leave by the end of the month.In a letter to employees, whom Starbucks calls “partners,” the company’s chief operating officer said that Rossann Williams, the president of retail for North America, would be leaving after 17 years at the company. The letter said the decision was “preceded by discussion about a next opportunity for Rossann within the company, which she declined.”John Culver, the chief operating officer, added in the letter that Ms. Williams “has not only been a fierce advocate for our partners, but she has been a champion of our mission, our culture and operational excellence.”Since December, when a store in Buffalo became the only one of Starbucks roughly 9,000 corporate-owned stores with a union, the campaign has spread rapidly across the country.The union has won over 80 percent of the more than 175 elections in which the National Labor Relations Board has declared a winner, and workers have formally sought elections at more than 275 stores in all.After workers at three Buffalo-area stores filed for union elections in August, Ms. Williams went to the city and spent much of the fall there leading the company’s response to the campaign. She spent many hours in stores, asking employees about concerns they had at their workplaces and even pitching in on tasks like throwing out garbage.But some workers said the presence of such a high-ranking official in their stores was intimidating and even “surreal.”Labor experts also raised concerns that Ms. Williams and other Starbucks officials deployed to the stores could be violating labor laws by intimidating workers and effectively offering to improve working conditions if employees voted against unionizing.The National Labor Relations Board later issued a complaint against the company along these lines, after investigating and finding merit to the accusations.The company denied that it had violated the law and has long said that it is seeking to address operational issues like understaffing and inadequate training, efforts it said had preceded the organizing campaign.In response to a question about whether she or the company might be undermining the conditions for a fair union election, Ms. Williams said in an interview in October that she had no choice but to intervene.“If I went to a market and saw the condition some of these stores are in, and I didn’t do anything about it, it would be so against my job,” she said at the time. “There’s no way I could come here and say I’m not going to do anything.”Mr. Culver’s letter said that Ms. Williams would be replaced by Sara Trilling, who most recently oversaw the company’s operations in the Asia-Pacific region. More

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    Inflation Expected to Remain High Even as Economy Slows and Layoffs Rise

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    Kat Johnston didn’t expect the pandemic to make her less stressed about her finances. After all, she temporarily lost her job at the library where she worked full time. But, like many Americans, she found an unexpected reprieve from money worries: Months at home limited her spending, and she received expanded unemployment insurance and two one-time checks from the government.“When I first came back to work, I had probably $2,200 in savings — which I know is not much, but it’s more than I’d had in a while,” she said. But it was no match for the inflation that has come since. “That savings is pretty much gone now. As things have gotten so expensive, it’s been almost a paycheck-to-paycheck life.”Ms. Johnston, 31, lives in the Dallas area in a studio apartment and had hoped to upgrade to a one-bedroom — her cat will occasionally use her bed as a litter box, so being able to shut the door would be good. Yet rent is increasing enough that she is considering moving in with a roommate instead.Gas is so expensive that she is buying just a quarter of a tank at a time. Her $65,000 in student loans from undergraduate and graduate school were in forbearance before the pandemic because she was struggling to afford them on her roughly $40,000 annual income. She has been able to continue not paying them because of a government moratorium, but she knows that may not last forever.She’d like to find a better-paying job, but she’s unsure about leaving a secure position — and embarking on a draining job search — at a moment when economists and investors warn of an impending recession. “It does feel like whatever I was thinking I was going to do is on hold,” she said.Kat Johnston has returned to work full time but her savings are depleted and she is thinking about getting a roommate as rents in the Dallas area climb sharply.Dylan Hollingsworth for The New York TimesMillions of Americans are feeling similarly stuck as their savings run low and their cost of living runs high. Now, the economy appears poised to slow — potentially sharply — in ways that could limit wage growth and cause job losses even as prices remain elevated. But instead of rushing to the economy’s aid by giving Americans money, as they did in March 2020, policymakers are engineering this slowdown. Then, the problem was a global pandemic; now, it’s stubbornly high inflation, and the main way the government knows to solve that is by inflicting some economic pain.In other words, the long-predicted “cliff” may finally have arrived.When the first round of pandemic aid programs began to expire in the summer of 2020, economists warned of a looming cliff facing both Americans who still needed government help and the pandemic-addled economy that was not yet ready to stand on its own. They repeated those warnings last fall, when Congress allowed unemployment benefits to expire for millions of workers, and again in January, when monthly payments for families with children came to an end.The loss of those programs and others, including enhanced nutrition benefits, was painful for many families. But for the economy as a whole, the cliffs turned out to be more like potholes. Consumers kept on spending, in part because trillions in government aid had allowed many Americans to build up at least a small financial buffer — as Ms. Johnston did — and in part because a record-setting recovery in the job market gave workers an income boost that helped offset the loss in government aid.Now, as savings run dry and consumers struggle under the weight of higher prices and rising interest rates, early cracks are beginning to show — and are likely to widen from here.Understand Inflation and How It Impacts YouInflation 101: What is inflation, why is it up and whom does it hurt? Our guide explains it all.Greedflation: Some experts contend that big corporations are supercharging inflation by jacking up prices. We take a closer look at the issue. Inflation Calculator: How you experience inflation can vary greatly depending on your spending habits. Answer these seven questions to estimate your personal inflation rate.For Investors: At last, interest rates for money market funds have started to rise. But inflation means that in real terms, you’re still losing money.Pay gains have been falling behind inflation for months. Credit card balances, which fell early in the pandemic, are rising toward a record high. Subprime borrowers — those with weak credit scores — are increasingly falling behind on payments on car loans in particular, credit bureau data show. Measures of hunger are rising, even with unemployment still low and the overall economy still strong.“It’s a grim picture already,” said Elizabeth Ananat, an economist at Barnard College who has studied the pandemic’s impact on low-income families. “Families are doing much worse than they were a few months ago.”Matrice Moore-Carr, a registrar at a public hospital in Nashville, Tenn., kept her job during the pandemic, and even managed to get a bit ahead, thanks to stimulus checks that helped her pay off her electric bill and stop worrying, at least for a little while, about whether she could afford gas for her car.When prices began to rise last year, Ms. Moore-Carr took on overtime shifts in the emergency room to make ends meet. When that wasn’t enough, she took a part-time job as a hotel receptionist. Now she is working seven days a week, often multiple jobs in one day, and still struggling to pay her bills.“That’s what’s been helping me keep the gas in the car and food on the table and the electricity going,” she said. “I’ve been making it work. I’m tired, I’ll tell you that. I’m so sleepy.”Ms. Moore-Carr, 52, owns her home, which she said is the only thing that allows her to keep living in Nashville, where both rents and home prices have soared in the pandemic. But the price of everything else has gone up — she joked about buying a horse to save on gas. On Tuesday, she stopped by the bank and turned in $47 in pennies.What she said she really worries about is the prospect of losing her overtime hours.“I don’t know what I’m going to do if anything gets any worse than it is now,” she said. “Am I going to have to cut my meals back? Am I going to have to eat once a day as opposed to three? I don’t know. It’s just tough.”Low-income households, at least on average, emerged from the first two years of the pandemic in remarkably strong financial shape. Trillions of dollars in government aid ensured that poverty fell in 2020, despite the loss of tens of millions of jobs. New rounds of assistance in 2021, including monthly payments through an expanded Child Tax Credit, led to a sharp drop in measures of childhood poverty and hunger. Those programs came from a very different economic moment, however. In 2020, and to a lesser degree in 2021, the needs of individual households and the needs of the broader economy were aligned: Stimulus checks and other forms of government aid helped jobless workers and their families avoid eviction, while at the same time helping businesses avoid bankruptcy, landlords avoid foreclosure, and cities and states avoid a collapse in their tax revenue.Today, that alignment has broken down. Giving people money now might help them pay their bills, but it could also make inflation worse by adding to demand as businesses are already failing to produce enough goods and hire enough workers.The Federal Reserve is instead trying to cool off the economy by raising interest rates, making it more expensive to borrow money to buy a house or expand a company. Weaker business activity will slow hiring, leading to slower wage growth and, most likely, more layoffs. It could also allow America’s goods and services — limited for more than a year by supply chain snarls and labor shortages — to catch up to demand, putting a damper on rising prices.Fed policymakers argue that this strategy is necessary to put the economy on a more sustainable path. But even as conditions take a turn for the worse, inflation will probably take a while to slow, and Fed officials themselves think it will still be elevated at the end of the year.“The transition is going to be very difficult,” said Seth Carpenter, global chief economist at Morgan Stanley and a former Fed economist. “At least historically, it takes a really long time for inflation to come down, even after the economy slows.”Even if the Fed can avoid causing a recession, a weakening labor market will bring hardship for many. Job losses can be devastating, often setting off a downward spiral of eviction and debt. Those who keep their jobs are likely to get fewer hours of work and to lose bargaining power.“Low-income workers, workers with low levels of education, Black and brown workers are the first to lose their jobs and the last to get them back,” said Diane Whitmore Schanzenbach, a Northwestern University economist who studies anti-poverty programs.Inflation F.A.Q.Card 1 of 5What is inflation? More