US economy added 4.8 million jobs in June

OECD Report: Women, Youth and Low Wages Wounded More by Crisis at Work

This according to one new report by the Organization for Economic Co-operation and Development, which said on Tuesday that unemployment is far worse than the one that followed the 2008 financial crisis and will remain high at least until 2022.
The Paris-based organization has encouraged countries to extend unemployment benefits and other welfare measures, as required, especially since low-wage workers, young people and women “bear the brunt of the crisis.”

“Despite the massive measures being taken around the world, uncertainty about future developments in the labor market is high, as the risk of new cases is high,” said Stefano Scarpetta, OECD’s director for employment, employment and social affairs. “Much of what will happen depends on the evolution of the pandemic.”

Higher-paid employees were 50% more likely to work from home than low-wage earners during the lockout, the OECD said, while women who are more likely to work in the competition sector have been hit hardest by men.

In the most optimistic scenario, where the virus continues to decline and remains under control, the organization predicts that unemployment will reach an average of 9.4% in OECD countries by the end of 2020 – the worst reading since the Great Recession – before it fell. at 7.7% at the end of 2021. At the end of 2019, before the Covid-19 strike, the unemployment rate for OECD countries was 5.3%.

The outlook is even worse in the case of a second wave of infections later this year. The OECD believes that unemployment will then rise to 12.6% before falling to 8.9% in 2021.

Why it matters: The warning comes as governments discuss how to extend or modify the costly relief of the unemployed and race businesses, which has so far been critical to protecting certain positions.

The Trump administration on Monday released data on about 4.8 million small businesses that have borrowed more than $ 520 billion through the Paycheck Protection Program – a central pillar of the $ 2 trillion emergency financial aid development that took place in March.

The program was so critical at the start that a first round of funding ran out in less than two weeks. But interest has dwindled recently, as the change in rules and the inability of lenders to repay a second loan have limited applications.

Europe’s response: The OECD noted that part-time employment programs, which encourage employers to retain employees even if they do not work full time, have been extremely successful in reducing unemployment in countries such as Germany, helping about 60 million people. . But the situation remains.

On Tuesday, the European Commission downgraded its economic outlook for the 19 countries using the euro, forecasting a decline of 8.7% in 2020 and a 6.1% increase in 2021. This is a major change from previous forecasts. reduce the eurozone economy by 7.7% this year. It also had strong growth in 2021.

Watch this space: The OECD said that almost half of jobs “require frequent interactions”, putting workers at risk of infection as the economies reopen. The agency said this meant that governments and companies needed to prioritize safety in the workplace and guarantee an “extended” paid sick leave to maintain the possibility of transmission in the coming months.

TikTok leaves Hong Kong

TikTok says it will leave Hong Kong following other big tech companies that have expressed caution about their operation at the economic hub after China imposed a controversial national security law there, my colleague at CNN Business, Sherisse Pham, said.

“In light of recent events, we have decided to stop operating the TikTok app in Hong Kong,” a TikTok spokesman told CNN Business.

It is not clear when TikTok – which is part of Beijing-based ByteDance – will launch from Hong Kong and what it means for users of the app in the city.

Big picture: TikTok’s announcement comes as Facebook, Twitter, Google and Zoom say they will stop processing government requests for Hong Kong user data while evaluating the new law.

Imposed last week by Beijing, the law criminalizes segregation, overthrow, terrorism and collusion with foreign powers. It marks a sweeping change that critics say is an attack on freedom of speech and the press that has long existed in Hong Kong but is banned in mainland China.

On the radar: As technology companies try to figure out their next moves, TikTok is set to become a major source of tension between Washington and Beijing.

US Secretary of State Mike Pompeo warned Monday night that the United States was “considering” a ban on TikTok and other Chinese social media applications.

Users should download TikTok “only if you want your personal information in the hands of the Chinese Communist Party,” Pompeo told Fox News.

Palantir Files for long-awaited IPO

Palantir Technologies, the secret data company Silicon Valley, is set to become a little more transparent, says my colleague at CNN Business, Charles Riley.

Files of secret data companies Palantir Technologies for IPO
What’s going on: Palantir has filed a lawsuit with the U.S. Securities and Exchange Commission over the issuance of shares in an initial public offering.

The company said in a brief statement on Monday that it had begun a confidential process to import its shares after the SEC’s assessment was completed.

Palantir did not disclose financial information or further details about its listing plans. However, the move creates a long-awaited IPO and provides more information about a company that has been closely monitoring the issue of speculation among technology investors for a long time.

What we know: Founded more than 15 years ago by technologically heavyweights, including renowned investor Peter Thiel and Alex Karp, its CEO, Palantir, has partnered with US government agencies such as the CIA and the FBI to win one a company that is flooded with a shadowy reputation and a reported valuation of about $ 20 billion.

However, relatively little is known about the company’s activities. Palantir demonstrates its ability to manage and secure data on a large scale, but says little about which companies or governments buy its services.

Greater transparency: Public display will eventually require Palantir to disclose additional information about its business. However, its selected path to an IPO will retain a blockbuster detail for a while longer. The confidential IPO archiving process allows a company to privately submit its registration statement, known as S-1, to the SEC for review.

This allows it to retain sensitive information from competitors, customers and investors until it is closer to being ready to import its shares.

Next

Jobs open in the US for publication in May at 10 a.m. ET and Levi Strauss (LEVEE) reports gains after closing US markets.

Coming tomorrow: UK Chancellor Rishi Sunak introduces new measures to support the British economy. The OECD has predicted that the UK will be the biggest success among major economies this year as a result of the corona pandemic.

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