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    U.S. Economy Added 372,000 Jobs in June, Defying Slowdown Fears

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    The strong Labor Department report comes as consumers and businesses express increasing concern about a downturn.The U.S. economy powered through June with broad-based hiring on par with recent months, keeping the country clear of recession territory even as inflation eats into wages and interest rates continue to rise. Employers added 372,000 jobs, the Labor Department reported Friday, and the unemployment rate, at 3.6 percent, was unchanged from May and near a 50-year low. Washington and Wall Street had keenly awaited the new data after a series of weaker economic indicators. The June job growth exceeded economists’ forecasts by roughly 100,000, offering some reassurance that a sharper downturn isn’t underway — at least not yet. But the strength of the report, which also showed bigger wage gains than expected, could give the Federal Reserve more leeway for tough medicine to beat back inflation. Now, all eyes will be watching whether the Fed’s strategy of raising interest rates pushes the country into a recession that inflicts harsh pain. Employment growth over the last three months averaged 375,000, a solid showing though a drop from a monthly pace of 539,000 in the first quarter of this year. Employers have continued to hang on to workers in recent months, with initial unemployment claims rising only slightly from their low point in March.The private sector has now regained its prepandemic employment level — an achievement trumpeted by the White House on Friday — though the level is still below what would have been expected absent the pandemic. Other than the public sector, no broad industry lost jobs in June, on a seasonally adjusted basis.“We’ve essentially ground our way back to where we were pre-Covid,” said Christian Lundblad, a professor of finance at the Kenan-Flagler Business School at the University of North Carolina. “So, this doesn’t necessarily look like a dire situation, despite the fact that we’re struggling with inflation and economic declines in some other dimensions.”Strong demand for workers is also evident in the 11.3 million jobs that employers had open in May, a number that remains close to record highs and leaves nearly two jobs available for every person looking for work. In this equation, any workers laid off as certain sectors come under strain are more likely to find new jobs quickly. The Labor Department’s broadest measure of labor force underutilization — which includes part-time workers who want more hours and people who have been discouraged from job hunting — sank to its lowest rate since the household survey took its current form in 1994, a sign that employers are maximizing their existing work force as hiring remains difficult. The education and health sector gained the most jobs in June.Change in jobs, by sector 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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    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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    Trader Joe’s Workers File to Hold Company’s First Union Election

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    The workers, at a store in western Massachusetts, cited health and safety concerns and cuts to benefits at the grocery chain.In a sign that service industry workers continue to have a strong interest in unionizing after successful votes at Starbucks, REI and Amazon, employees at a Trader Joe’s in western Massachusetts have filed for a union election. If they win, they will create the only union at Trader Joe’s, which has more than 500 locations and 50,000 employees nationwide.The filing with the National Labor Relations Board late Tuesday seeks an election involving about 85 employees who would form an independent union, Trader Joe’s United, rather than affiliate with an established labor organization. That echoes the independent union created by Amazon workers on Staten Island and the worker-led organizing at Starbucks.“Over the past however many years, changes have been happening without our consent,” said Maeg Yosef, an 18-year employee of the store who is a leader of the union campaign. “We wanted to be in charge of the whole process, to be our own union. So we decided to go independent.”Ms. Yosef said the union had support from over 50 percent of workers at the store, known as crew members.“We have always said we welcome a fair vote and are prepared to hold a vote if more than 30 percent of the crew wants one,” said a company spokeswoman, Nakia Rohde, alluding to the N.L.R.B. threshold for an election. “We are not interested in delaying the process in any way.”The company shared a similar statement with workers after they announced their intention to unionize in mid-May.In explaining their decision, Ms. Yosef and four colleagues, all of whom have been with the company for at least eight years, cited changes that had made their benefits less generous over time, as well as health and safety concerns, many of which were magnified during the pandemic.“This is probably where we get to all of these things coming together,” said Tony Falco, another worker involved in the union campaign, alluding to Covid-19.Mr. Falco said the store, in Hadley, took several reassuring steps during the first 12 to 15 months of the pandemic. Management enforced masking requirements and restrictions on the number of customers who could be in the store at once. It allowed workers to take leaves of absence while continuing to receive health insurance and gave workers additional “thank you” pay as high as $4 per hour.But Mr. Falco and others said the company was too quick to roll back many of these measures — including additional pay — as vaccines became widely available last year, and noted that the store had suffered Covid outbreaks in the past several weeks after masking became laxer. The store followed the policy of the local health board, which altered its mask mandate at various points, lifting it most recently in March.Some employees were also upset that the company did not inform them that the state had passed a law requiring employers to provide up to five paid days off for workers who missed work because of Covid.“It was in effect seven months, and they never announced it,” Ms. Yosef said. “I figured that out at the end of December, early January.”Ms. Rohde, the spokeswoman, said this account was incorrect, but four other employees who support the union also said the company had not told them of the policy.A Trader Joe’s store in New York. Early in the pandemic, the chief executive wrote that union advocates “clearly believe that now is a moment when they can create some sort of wedge in our company.”Benjamin Norman for The New York TimesTrader Joe’s has generally resisted unionization over the years, including earlier in the pandemic. In March 2020, the chief executive, Dan Bane, sent employees a letter referring to “the current barrage of union activity that has been directed at Trader Joe’s” and complaining that union advocates “clearly believe that now is a moment when they can create some sort of wedge in our company through which they can drive discontent.”The company’s response to the current campaign appears somewhat less hostile, though union organizers have recently filed charges of unfair labor practices, such as asking employees to remove pro-union pins.Several employees said a broader issue was underlying their frustrations: what they saw as the company’s evolution from a niche outlet known for pampering customers and treating employees generously to an industrial-scale chain that is more focused on the bottom line.The company’s employee handbook urges workers to provide a “Wow customer experience,” which it defines as “the feelings a customer gets about our delight that they are shopping with us.” But longtime employees say the company, which is privately held, has gradually become stingier with workers.For years, the company offered health care widely to part-timers. In the early 2010s, the company raised the average weekly hours that employees needed to qualify for full health coverage to 30 from roughly 20, informing those who no longer qualified that they could receive coverage under the federal Affordable Care Act instead. (The company dropped the threshold to 28 hours more recently.)“It was done under the guise of ‘You can get these plans, they’re the same plans,’ but they were not the same plans,” said Sarah Yosef, the Hadley store’s manager at the time, who later stepped back from the role and is now a frontline worker there.“I had to sit there individually with crew members saying you’re going to be losing health insurance,” added Ms. Yosef, who is married to Maeg Yosef.Retirement benefits have followed a similar trajectory: Around the same time, Trader Joe’s lowered its retirement contribution to 10 percent of an employee’s earnings from about 15 percent, for employees 30 and older. Beginning with last year’s benefit, the company lowered the percentage again for many workers, who saw the contribution fall to 5 percent. The company is no longer specifying any set amount.Tony Falco and Sarah Yosef at the Trader Joe’s store in Hadley. She said, “I had to sit there individually with crew members saying you’re going to be losing health insurance.”Holly Lynton for The New York TimesMs. Rohde, the spokeswoman, said the change was partly a response to indications from many workers that they would prefer a bonus to a retirement contribution.Workers said the company’s determination to provide an intimate shopping experience had often come at their expense amid a rapid increase in business over the past decade, and then again with the resurgence of business as pandemic restrictions lifted.For example, Trader Joe’s doesn’t have conveyor belts at checkout lines and instructs cashiers to reach into customers’ carts or baskets to unload items. This can appear to personalize the service but takes a physical toll on workers, who typically bend over hundreds of times during a shift.(The company asks workers to perform different tasks throughout the day so they are not constantly ringing up customers.)Maeg Yosef and her co-workers began discussing the union campaign over the winter, angry over the store’s failure to publicize the state-mandated paid leave benefit and the change in retirement benefits, and some have drawn inspiration from the successful union elections at Starbucks, Amazon and REI.Their union campaign may also benefit from the same leverage that workers at those companies enjoyed as a result of the relatively tight job market.“People just keep leaving — I know they want to hire people now,” Maeg Yosef said. “It’s hard to keep people around.” More

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    Hiring Remains Strong Even as Fed Tries to Cool Economy

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    The Labor Department reported 390,000 new jobs in May, as policymakers try to ease inflation without inducing a recession.American employers extended an impressive run of hiring in May, even as policymakers took steps to cool the economy in an effort to ease high inflation.The Labor Department reported Friday that employers added 390,000 jobs, the 17th straight monthly gain. The unemployment rate was 3.6 percent for the third straight month, a touch away from a half-century low.At the same time, the labor force grew by 330,000 people, and the share of adults employed or looking for work continued to edge closer to prepandemic levels.The data signaled that the Federal Reserve’s initial moves to dial back its monetary support for the economy were — at least so far — not constraining business activity so much that hiring was feeling a pinch.After the strong rebound from the depths of the coronavirus lockdowns — all but 800,000 of the 22 million jobs that were lost have been recovered — the Fed has shifted its emphasis from maximum employment to its other mandate: price stability. The challenge is to apply its primary tool, a steady series of interest-rate increases, without inflicting a recession.“I think we’re on sort of what looks like a glide path right now, and that’s good — nothing’s broken,” said Guy Berger, the principal economist at the career-focused social network LinkedIn. “But keep fast-forwarding it a year and the question marks are still big.”The closely watched indicators include the impact on wages, which have been increasing at a pace not seen in decades, though not enough to keep up with inflation over the past year. The Fed is worried that rising labor costs will be passed along to consumers.Wages kept rising across industries.Percent change in average hourly earnings for nonmanagers since January 2019

    Data is seasonally adjusted. Not adjusted for inflation.Source: Bureau of Labor StatisticsBy The New York TimesOn that score, the Labor Department report showed little change in trajectory. Average hourly earnings rose 0.3 percent from the previous month, the same pace as in April, and were 5.2 percent higher than a year earlier, compared with a 5.5 percent year-over-year increase in April.“It’s moderating, but it’s not moderating to a level, I think, where it’s consistent with the Fed’s inflation goals,” said Michael Feroli, chief U.S. economist at J.P. Morgan, said of wage growth. He said the Fed would probably want wages to cool toward an annualized 3.5 percent pace, at the higher end, a rate that officials view as aligned with 2 percent inflation.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.Vacancies: Employers had 11.4 million vacancies in April down from a revised total of nearly 11.9 million the previous month, which was a record.Opportunities for Teenagers: Jobs for high school and college students are expected to be plentiful this summer, and a large market means better pay.Higher Interest Rates: Spurred by red-hot inflation, the Federal Reserve has begun raising interest rates. What does that mean for the job market?President Biden gave a nuanced celebration of the jobs data in remarks on Friday, emphasizing recent gains while arguing that a slowdown would be welcome, allowing inflation to ease.“The point is this: We’ve laid an economic foundation that’s historically strong,” Mr. Biden said. “Now we’re moving forward to a new moment, where we can build on that foundation, build a future of stable, steady growth so that we can bring down inflation without sacrificing all of the historic gains that we have made.”Stocks declined on Friday and bond yields rose as investors evidently read the report as reinforcing the Fed’s muscular efforts, which risk denting economic growth. “The better the data, the more difficult that a pause or reduced pace of tightening later this year becomes,” analysts at TD Securities wrote in a research report published after the jobs numbers were released.The continued job gains are among many indications of a vibrant economy. Reports from the nation’s largest banks show checking accounts are still above 2019 levels for nearly all income groups. New bankruptcies and debt-collection proceedings are both at their lowest levels since tracking began in 1999.Yet those encouraging trends have been at odds with the generally sour national mood, dominated by inflation concerns. U.S. consumer sentiment declined in early May to the lowest since 2011, according to the University of Michigan.The unemployment rate stayed flat in May.The share of people who have looked for work in the past four weeks or are temporarily laid off More

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    Economic Scorecard: Biggest Numbers May Not Be Best, for Now

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    As the Federal Reserve tries to rein in inflation without causing a recession, slower job creation and wage growth could be a plus.When it comes to the economy, more is usually better.Bigger job gains, faster wage growth and more consumer spending are all, in normal times, signs of a healthy economy. Growth might not be sufficient to ensure widespread prosperity, but it is necessary — making any loss of momentum a worrying sign that the economy could be losing steam or, worse, headed into a recession.But these are not normal times. With nearly twice as many open jobs as available workers and companies struggling to meet record demand, many economists and policymakers argue that what the economy needs right now is not more, but less — less hiring, less wage growth and above all less inflation, which is running at its fastest pace in four decades.Jerome H. Powell, the Federal Reserve chair, has called the labor market “unsustainably hot,” and the central bank is raising interest rates to try to cool it. President Biden, who met with Mr. Powell on Tuesday, wrote in an opinion article this week in The Wall Street Journal that a slowdown in job creation “won’t be a cause for concern” but would rather be “a sign that we are successfully moving into the next phase of recovery.”“We want a full and sustainable recovery,” said Claudia Sahm, a former Fed economist who has studied the government’s economic policy response to the pandemic. “The reason that we can’t take the victory lap right now on the recovery — the reason it is incomplete — is because inflation is too high.”But a cooling economy carries its own risks. Despite inflation, the recovery from the pandemic recession has been among the strongest on record, with unemployment falling rapidly and incomes rebounding fastest for those at the bottom. If the recovery slows too much, it could undo much of that progress.“That’s the needle we’re trying to thread right now,” said Harry J. Holzer, a Georgetown University economist. “We want to give up as few of the gains that we’ve made as possible.”Economists disagree about the best way to strike that balance. Mr. Powell, after playing down inflation last year, now says reining it in is his top priority — and argues that the central bank can do so without cutting the recovery short. Some economists, particularly on the right, want the Fed to be more aggressive, even at the risk of causing a recession. Others, especially on the left, argue that inflation, while a problem, is a lesser evil than unemployment, and that the Fed should therefore pursue a more cautious approach.But where progressives and conservatives largely agree is that evaluating the economy will be particularly difficult over the next several months. Distinguishing a healthy cool-down from a worrying stall will require looking beyond the indicators that typically make headlines.“It’s a very difficult time to interpret economic data and to even understand what’s happening with the economy,” said Michael R. Strain, an economist with the American Enterprise Institute. “We’re entering a period where there’s going to be tons of debate over whether we are in a recession right now.”Slower job growth could be good (or bad).The jobs report for May, which the Labor Department will release on Friday, will provide a case study in the difficulty of interpreting economic data right now.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.Measuring Inflation: Over the years economists have tweaked one of the government’s standard measures of inflation, the Consumer Price Index. What is behind the changes?Inflation Calculator: How you experience inflation can vary greatly depending on your spending habits. Answer these seven questions to estimate your personal inflation rate.Interest Rates: As it seeks to curb inflation, the Federal Reserve began raising interest rates for the first time since 2018. Here is what that means for inflation.Ordinarily, one number from the monthly report — the overall jobs added or lost — is enough to signal the labor market’s health. That is because most of the time, the driving force in the labor market is demand. If business is strong, employers will want more workers, and job growth will accelerate. When demand lags, then hiring slows, layoffs mount and job growth stalls.Right now, though, the limiting factor in the labor market is not demand but supply. Employers are eager to hire: There were 11.4 million job openings at the end of April, close to a record. But there are roughly half a million fewer people either working or actively looking for work than when the pandemic began, leaving employers scrambling to fill available jobs.The labor force has grown significantly this year, and forecasters expect more workers to return as the pandemic and the disruptions it caused continue to recede. But the pandemic may also have driven longer-lasting shifts in Americans’ work habits, and economists aren’t sure when or under what circumstances the labor force will make a complete rebound. Even then, there might not be enough workers to meet the extraordinarily high level of employer demand.A coffee shop advertised open positions in New York. The limiting factor in the labor market is not demand but supply.Amir Hamja for The New York TimesMost forecasters expect the report on Friday to show that job growth slowed in May. But that number alone won’t reveal whether the mismatch between supply and demand is easing. Slowing job growth coupled with a growing labor force could be a sign that the labor market is coming back into balance as demand cools and supply improves. But the same level of job growth without an increase in the supply of workers could indicate the opposite: that employers are having an even more difficult time finding the help they need.Many economists say they will be watching the labor force participation rate — the share of the population either working or looking for work — just as closely as the headline job growth figures in coming months.“One can unambiguously root for higher labor force participation,” said Jason Furman, a Harvard economist who was an adviser to President Barack Obama. “Beyond that, nothing else is unambiguous.”Wage growth may need to slow.Another number will be getting a lot of attention from economists, policymakers and investors: wage growth.Employers have responded to the hot competition for workers exactly the way Econ 101 says they should, by raising pay. Average hourly earnings were up 5.5 percent in April from a year earlier, more than twice the rate they were rising before the pandemic.Normally, faster wage growth would be good news. Persistently weak pay increases were a bleak hallmark of the long, slow recovery that followed the last recession. But even some economists who bemoaned those sluggish gains at the time say the current rate of wage growth is unsustainable.“That’s something that we’re used to saying pretty unequivocally is good, but in this case it just raises the risk that the economy is overheating further,” said Adam Ozimek, chief economist of the Economic Innovation Group, a Washington research organization. As long as wages are rising 5 or 6 percent per year, he said, it will be all but impossible to bring inflation down to the Fed’s 2 percent target.Inflation F.A.Q.Card 1 of 5What is inflation? More

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    Why Union Efforts at Starbucks Have Spread Further Than at Amazon

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    Why has the union campaign spread so much further at the coffee chain than at the e-commerce giant?Roughly six weeks after successful union votes at two Buffalo-area Starbucks stores in December, workers had filed paperwork to hold union elections in at least 20 other Starbucks locations nationwide.By contrast, since the Amazon Labor Union’s victory last month in a vote at a huge warehouse on Staten Island, workers at just one other Amazon facility have filed for a union election — with an obscure union with a checkered past — before promptly withdrawing their petition.The difference may come as a surprise to those who believed that organizing at Amazon might follow the explosive pattern witnessed at Starbucks, where workers at more than 250 stores have filed for elections and the union has prevailed at a vast majority of the locations that have voted.Christian Smalls, the president of the independent Amazon Labor Union, told NPR shortly after the victory that his group had heard from workers in 50 other Amazon facilities, adding, “Just like the Starbucks movement, we want to spread like wildfire across the nation.”The two campaigns share some features — most notably, both are largely overseen by workers rather than professional organizers. And the Amazon Labor Union has made more headway at Amazon than most experts expected, and more than any established union.But unionizing workers at Amazon was always likely to be a longer, messier slog given the scale of its facilities and the nature of the workplace. “Amazon is so much harder a nut to crack,” John Logan, a labor studies professor at San Francisco State University, said by email. The union recently lost a vote at a smaller warehouse on Staten Island.To win, a union must get the backing of more than 50 percent of the workers who cast a vote. That means 15 or 20 pro-union workers can ensure victory in a typical Starbucks store — a level of support that can be summoned in hours or days. At Amazon warehouses, a union frequently would have to win hundreds or thousands of votes.Organizers for the Amazon Labor Union spent hundreds of hours talking with co-workers inside the warehouse during breaks, after work and on days off. They held cookouts at a bus stop outside the warehouse and communicated with hundreds of colleagues through WhatsApp groups.Brian Denning, who leads an Amazon organizing campaign sponsored by the Democratic Socialists of America chapter in Portland, Ore., said his group had received six or seven inquiries a week from Amazon workers and contractors after the Staten Island victory, versus one or two a week beforehand.But Mr. Denning, a former Amazon warehouse employee who tells workers that they are the ones who must lead a union campaign, said that many didn’t realize how much effort unionizing required, and that some became discouraged once he conferred with them.Understand the Unionization Efforts at AmazonBeating Amazon: A homegrown, low-budget push to unionize at a Staten Island warehouse led to a historic labor victory. (Workers at another nearby Amazon facility rejected joining a similar effort shortly after.)Retaliation: Weeks after the landmark win, Amazon fired several managers in Staten Island. Some see it as retaliation for their involvement in the unionization efforts.A New Playbook: The success of the Amazon union’s independent drive has organized labor asking whether it should take more of a back seat.Amazon’s Approach: The company has countered unionization efforts with mandatory “training” sessions that carry clear anti-union messages.“We get people saying how do we get an A.L.U. situation here? How do we do that like they did?” Mr. Denning said, adding: “I don’t want to scare them away. But I can’t lie to workers. This is what it is. It’s not for everyone.”At Starbucks, employees work together in a relatively small space, sometimes without a manager present to supervise them directly for hours at a time. This allows them to openly discuss concerns about pay and working conditions and the merits of a union.At Amazon, the warehouses are cavernous, and workers are often more isolated and more closely supervised, especially during an organizing campaign.“What they would do is strategically separate me from everyone in my department,” said Derrick Palmer, an Amazon employee on Staten Island who is one of the union’s vice presidents. “If they see me interacting with that person, they would move them to a different station.”Asked about the allegation, Amazon said it assigned employees to work stations and tasks based on operational needs.Both companies have accused the unions of their own unfair tactics, including intimidating workers and inciting hostile confrontations.Organizing drivers is an even greater challenge, partly because they are officially employed by contractors that Amazon hires, though labor organizers say they would like to pressure the company to address drivers’ concerns.Christy Cameron, a former driver at an Amazon facility near St. Louis, said the job’s setup largely kept drivers from interacting. At the beginning of each shift, a manager for the contractor briefs drivers, who then disperse to their trucks, help load them and get on the road.“It leaves very little time to talk with co-workers outside of a hello,” Ms. Cameron said in a text message, adding that Amazon’s training discouraged discussing working conditions with fellow drivers. “It was generally how they are highly against unionizing and don’t talk about pay and benefits with each other.”Amazon, with about a million U.S. workers, and Starbucks, with just under 250,000, offer similar pay. Amazon has said that its minimum hourly wage is $15 and that the average starting wage in warehouses is above $18. Starbucks has said that as of August its minimum hourly wage will be $15 and that the average will be nearly $17.Starbucks workers celebrated the results of a vote to unionize in Buffalo last year.Joshua Bessex/Associated PressDespite the similarity in pay, organizers say the dynamics of the companies’ work forces can be quite different.At the Staten Island warehouse where Amazon workers voted against unionizing, many employees work four-hour shifts and commute 30 to 60 minutes each way, suggesting they have limited alternatives.“People who go to that length for a four-hour job — it’s a particular group of people who are really struggling to make it,” said Gene Bruskin, a longtime labor organizer who advised the Amazon Labor Union in the two Staten Island elections, in an interview last month.As a result of all this, organizing at Amazon may involve incremental gains rather than high-profile election victories. In the Minneapolis area, a group of primarily Somali-speaking Amazon workers has staged protests and received concessions from the company, such as a review process for firings related to productivity targets. Chicago-area workers involved in the group Amazonians United received pay increases not long after a walkout in December.Ted Miin, an Amazon worker who is one of the group’s members, said the concessions had followed eight or nine months of organizing, versus the minimum of two years he estimates it would have taken to win a union election and negotiate a first contract.For workers who seek a contract, the processes for negotiating one at Starbucks and Amazon may differ. In most cases, bargaining for improvements in compensation and working conditions requires additional pressure on the employer.At Starbucks, that pressure is in some sense the union’s momentum from election victories. “The spread of the campaign gives the union the ability to win in bargaining,” Mr. Logan said. (Starbucks has nonetheless said it will withhold new pay and benefit increases from workers who have unionized, saying such provisions must be bargained.)At Amazon, by contrast, the pressure needed to win a contract will probably come through other means. Some are conventional, like continuing to organize warehouse employees, who could decide to strike if Amazon refuses to recognize them or bargain. The company is challenging the union victory on Staten Island.But the union is also enlisting political allies with an eye toward pressuring Amazon. Mr. Smalls, the union president, testified this month at a Senate hearing that was exploring whether the federal government should deny contracts to companies that violate labor laws.On Thursday, Senator Bob Casey, a Pennsylvania Democrat, introduced legislation seeking to prevent employers from deducting anti-union activity, like hiring consultants to dissuade workers from unionizing, as a business expense.While many of these efforts may be more symbolic than substantive, some appear to have gotten traction. After the Port Authority of New York and New Jersey announced last summer that it was awarding Amazon a 20-year lease at Newark Liberty International Airport to develop an air cargo hub, a coalition of community, labor and environmental groups mobilized against the project.The status of the lease, which was to become final by late last year, remains unclear. The Port Authority said that lease negotiations with Amazon were continuing and that it continued to seek community input. An Amazon spokeswoman said the company was confident the deal would close.A spokeswoman for Gov. Phil Murphy of New Jersey indicated that the company might have to negotiate with labor groups before the deal could go forward. “The governor encourages anyone doing business in our state to work collaboratively with labor partners in good faith,” the spokeswoman said.Karen Weise More

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    April Jobs Report: Gain of 428,000 Shows Vibrant Labor Market

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    The Labor Department reported a gain of 428,000 jobs in April, along with a 5.5 percent increase in average hourly earnings from a year earlier.The U.S. economic rebound from the pandemic’s devastation held strong in April with another month of solid job growth.Employers added 428,000 jobs, matching the previous month, the Labor Department reported Friday, with the growth broad-based across every major industry.The unemployment rate remained 3.6 percent, just a touch above its level before the pandemic, when it was the lowest in half a century.The challenge of a highly competitive labor market for employers — a shortage of available workers — persisted as well. In fact, the report showed a decline of 363,000 in the labor force.The economy has regained nearly 95 percent of the 22 million jobs lost at the height of coronavirus-related lockdowns two years ago. But the labor supply has not kept up with a record wave of job openings as businesses expand to match consumers’ continued willingness to buy a variety of goods and services. There are now 1.9 job openings for every unemployed worker.The hiring scramble has driven up wages, and employers are largely passing on that expense, helping fuel inflation that Americans have cited as their leading economic concern. On that front, Friday’s report showed an easing in the acceleration of average hourly earnings, which increased 0.3 percent from the month before, after a 0.5 percent gain in March.President Biden pointed to the latest data as evidence of “the strongest job creation economy in modern times,” a message the White House is increasingly amplifying ahead of the congressional elections.The unemployment rate stayed under 4 percent in April.The share of people who have looked for work in the past four weeks or are temporarily laid off, which does not capture everyone who lost work because of the pandemic. More