Discover the top business headlines that are trending across the world today!
In August, the US Economy couldn’t keep up with expectations of adding more jobs as it could create a lesser number of jobs than anticipated. This could clear the way for the Federal Reserve to lower interest rates later this month.
In August, surging from 89,000 in July, nonfarm payrolls increased by 142,000. However, as reported by the Labor Department’s Bureau of Labor Statistics on Friday, it was still below the Dow Jones prediction of 161,000.
For the moment, the unemployment rate dipped to 4.2%, fairly aligning with the expectations. The labor force enlarged by 120,000 in August, contributing to the 0.1 percentage point decline in the jobless rate, though the labor force participation rate remained steady at 62.7%. An alternative unemployment measure, which includes discouraged workers and those working part-time for economic reasons, rose to 7.9%, the highest level since October 2021.
The worst stock performance since the 2023 regional bank crisis and troubling economic data long foreseen by commodity and bond markets have unnerved traders this week. Especially from the labor market, following an early August rebound, concerns surrounding growth materialized amid negative economic reports. For four consecutive days, the S&P 500 dipped, and credit spreads widened hugely. The index of chipmakers also declined 12%- the sharpest decline it has witnessed since the pandemic. Although there was a 13% gain for the S&P 500 this year, signaling optimism for a soft landing, the market action on Friday hinted at a rare moment of consensus among investors across asset classes, who had been unusually split up on the economic outlook since 2019. As the effects of over two years of hawkish Federal Reserve policies begin to weigh heavily, equities—particularly those of economically sensitive companies—joined longer-standing declines seen in oil, copper, and bond yields over the past month.
According to the Financial Express, Think and Learn, the parent company of Byju’s is yet again facing claims by current and former employees, which have now exceeded Rs 300 crore. 1,784 employees in total have filed claims which amount to Rs 301 crore for unpaid wages, as documented by the Interim Resolution Professional (IRP) during the Corporate Insolvency Resolution Process (CIRP). Byju’s previously acknowledged Rs 100 crore, a number which is clearly false. The creditors’ list from August 30 includes diverse claims, with several senior executives seeking over Rs 50 crore, while mid-level employees have filed claims between Rs 10-30 lakh, indicating widespread payment issues across various levels of the organization.
Contracts worth Rs 11,481 crore have been awarded by Tate Power-led Odisha Diacoms to the local contractors and suppliers. Through their joint ventures, over the past three years, the Odisha government and Tata Power have placed orders worth Rs 8,690 crore with local MSMEs and Rs 2,791 crore with non-MSMEs. Since the time Tata Power took control of the state’s power distribution, these contracts including materials and services, have been granted to local contractors and suppliers. According to the company, these partnerships are crucial for daily operations and services, with a strong focus on encouraging local vendors to hire residents from nearby areas.
