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The world’s 10 wealthiest men doubled their fortunes during the first two years of the coronavirus pandemic as poverty and inequality soared, a report said on Monday.

Oxfam said the men’s wealth jumped from $700 billion to $1.5 trillion, at an average rate of $1.3 billion per day, in a briefing published before a virtual mini summit of world leaders being held under the auspices of the World Economic Forum.

A confederation of charities that focus on alleviating global poverty, Oxfam said the billionaires’ wealth rose more during the pandemic more than it did the previous 14 years, when the world economy was suffering the worst recession since the Wall Street Crash of 1929.

It called this inequality “economic violence” and said inequality is contributing to the death of 21,000 people every day due to a lack of access to health care, gender-based violence, hunger and climate change.

The pandemic has plunged 160 million people into poverty, the charity added, with non-white ethnic minorities and women bearing the brunt of the impact as inequality soared.

The report follows a December 2021 study by the group that found the share of global wealth of the world’s richest people soared at a record pace during the pandemic.

Oxfam urged tax reforms to fund worldwide vaccine production as well as healthcare, climate adaptation and gender-based violence reduction to help save lives.

The group said it based its wealth calculations on the most up-to-date and comprehensive data sources available and used the 2021 Billionaires List compiled by the U.S. business magazine Forbes.

Forbes listed the world’s 10 richest men as: Tesla and SpaceX chief Elon Musk, Amazon’s Jeff Bezos, Google founders Larry Page and Sergey Brin, Facebook’s Mark Zuckerberg, former Microsoft CEOs Bill Gates and Steve Ballmer, former Oracle CEO Larry Ellison, U.S. investor Warren Buffet and the head of the French luxury group LVMH, Bernard Arnault.
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On a cold winter afternoon in the Indian capital, New Delhi, a group of auto rickshaw drivers huddled outside a metro station hoping to pick up passengers. Since the city shut schools, colleges, restaurants and offices to cope with a third wave of the pandemic fueled by the omicron variant, though, they know their wait could be long and probably futile.

“We work on the streets and depend on people being out,” Shivraj Verma said.

“Now I will not be able to earn enough to even buy food in the city. We get crushed when the city closes.”

This is the third consecutive year that tens of millions of workers in India’s vast informal economy are confronting a loss of livelihoods and incomes as megacities such as New Delhi and Mumbai, which are the epicenter of the new wave, partially shutter.

While India has not enforced a stringent nationwide lockdown as it did in 2020, Delhi has closed offices, imposed a weekend and night curfew and restricted large gatherings. In the business hub of Gurugram, markets shut early as part of measures to curb the spread of coronavirus.

For those that work on the street, though, contracting the virus is of little concern — their masks hang loosely on their faces, only to be pulled up when a policeman, who might impose a fine, passes by. Their pressing problem is to earn enough money to feed families, send children to school and pay rent for their tiny tenements.

In the lives-versus-livelihoods debate that has posed one of the pandemic’s greatest dilemmas, their vote is squarely with the latter.

“We don’t worry about the virus, we worry about how to take care of our families. I will have to return again to my village if the situation stays the same,” auto rickshaw operator Mohammad Amjad Khan said.

Khan was among millions of migrants returned to their villages when India witnessed a mass exodus in 2020. He only picked up the courage to return to Delhi after a year and a half in September. At that time India had recovered from its devastating second wave.

Its cities were humming, restaurants and markets were packed, and businesses saw a revival. As India’s economy picked up pace briskly, Khan made a decent living from the auto rickshaw he took on hire to ferry customers and could send some money home. The pandemic appeared to have become a distant memory.

The good times lasted for four months. From less than 7,000 new cases a day in mid-December, India has been counting more than a quarter million in recent days. As cities like Delhi hunker indoors, earnings have again plummeted.

“Now I don’t even make enough money to pay for the daily hire of this vehicle. It’s really tough,” Khan said with a despondent shrug.

Indian policymakers have underlined the need to protect jobs.

At a meeting with chief ministers this week, Prime Minister Narendra Modi said that there should be minimal loss to the ordinary people’s livelihoods and related economic activity as the country battles the latest wave.

“We have to keep this in mind, whenever we are making a strategy for COVID-19 containment,” he said.

Delhi’s Chief Minister Arvind Kejriwal has reassured migrant labor that a lockdown will not be imposed.

On the ground however, even partial curbs hit hard the tens of thousands of vendors who line Indian streets – vegetable and fruit sellers, small kiosks selling chips, soft drinks and cigarettes, and food carts.

Anita Singh is allowed to operate her street cart that sells hot meals and snacks till 8 p.m., but in the last two weeks, there have been very few customers to serve.

“Most of my sales were to college students or in the late evening when people left offices. Now they are shut,” she said.

Employment has not returned to its pre-pandemic level since the Indian economy was battered by COVID-19 lockdowns, according to a recent report by the Center for Monitoring the Indian Economy. The report said that there are fewer salaried jobs, whereas daily wage work and farm labor has increased – a sign of economic distress.

“There has been a drop in average wages and daily earnings across sectors because of COVID stipulations,” said Anhad Imaan, a communication specialist with several nonprofit organizations working with migrant labor.

“Even in the construction and manufacturing sectors which have remained open, there is less work available per worker.”

That means the quality of lives of those in the informal sector has taken a huge hit.

“They used to spend much of what they earned on food and a place to stay and sent home whatever they saved,” he said, “Now they are down to subsistence levels.”

Although estimates vary widely, studies say millions in India have slipped below the poverty line during the pandemic. A study by Pew Research Center in March pegged the number at 75 million. Another one by the Centre for Sustainable Employment at Azim Premji University in May after India experienced a second wave put it at 230 million due to “income shocks.”

Whatever the numbers, it is a reality that the group of auto rickshaw drivers waiting for passengers knows too well. As they talked to each other, their top concern was whether there will be a lockdown and whether they should be heading home for a third time.

 
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To match the festive spirit of South America’s first Olympics, officials from Brazil, the host country for the 2016 games in Rio de Janeiro, boasted that the medals hung around the necks of athletes on the winners’ podium were also a victory for the environment: The gold was produced free of mercury and the silver recycled from thrown away X-ray plates and mirrors.

Five years on, the refiner that provided the gold for the medals, Marsam, is processing gold ultimately purchased by hundreds of well-known publicly traded U.S. companies — among them Microsoft, Tesla and Amazon — that are legally required to responsibly source metals in an industry long plagued by environmental and labor concerns.

But a comprehensive review of public records by The Associated Press found that the Sao Paulo-based company processes gold for, and shared ownership links to, an intermediary accused by Brazilian prosecutors of buying gold mined illegally on Indigenous lands and other areas deep in the Amazon rainforest.

The AP previously reported in this series that the scale of prospecting for gold on Indigenous lands has exploded in recent years and involves carving illegal landing strips in the forest for unauthorized airplanes to ferry in heavy equipment, fuel and backhoes to tear at the earth in search of the precious metal. Weak government oversight enabled by President Jair Bolsonaro, the son of a prospector himself, has only exacerbated the problem of illegal gold mining in protected areas. Critics also fault an international certification program used by manufacturers to show they aren’t using minerals that come from conflict zones, saying it is an exercise in greenwashing.

“There is no real traceability as long as the industry relies on self-regulation,” said Mark Pieth, a professor of criminal law at the University of Basel in Switzerland and author of the 2018 book “Gold Laundering.”

“People know where the gold comes from, but they don’t bother to go very far back into the supply chain because they know they will come into contact with all kinds of criminal activity.”

Much like brown and black tributaries that feed the Amazon River, gold illegally mined in the rainforest mixes into the supply chain and melds with clean gold to become almost indistinguishable.

Nuggets are spirited out of the jungle in prospectors’ dusty pockets to the nearest city where they are sold to financial brokers. All that’s required to transform the raw ore into a tradable asset regulated by the central bank is a handwritten document attesting to the specific point in the rainforest where the gold was extracted. The fewer questions asked, the better.

At many of those brokers’ Amazon outposts — the financial system’s front door — the gold becomes the property of Dirceu Frederico Sobrinho, known universally by just his first name.

For four decades, Dirceu has embodied the up-by-your-bootstraps myth of the Brazilian garimpeiro, or prospector. The son of a vegetable grocer who sold his produce near an infamous open-pit mine so packed with prospectors — among them Bolsonaro’s father — they looked like swarming ants, he caught the gold bug in the mid-1980s and began dispatching planeloads of raw ore from a remote Amazon town. He secured his first concession in 1990, one year after the nation rolled out a permitting regime to regulate prospecting.

Today, from a high rise on Sao Paulo’s busiest avenue, he is a major player in Brazil’s gold rush, with 173 prospecting areas either registered to his name or with pending requests, according to Brazil’s mining regulator’s registry. In the same building is the headquarters of the nation’s gold association, Anoro, which he leads. Dirceu, until last year, was also a partner in Marsam.

But even with gold jewelry dangling from his fingers and wrist, Dirceu still proudly boasts his everyman garimpeiro roots.

“You don’t motivate someone to go into the forest if they’re not chasing after a dream,” he said in a rare interview from his corner office studded with a giant jade eagle. “Whoever deals in gold has that: They dream, they believe, they like it.”

“We have a saying among the garimpeiros: ‘I’m a pawn, but I’m a pawn for gold,'” he adds.

At the center of Dirceu’s empire is F.D’Gold, Brazil’s largest buyer of gold from prospecting sites, with purchases last year totaling more than 2 billion reais ($361 million) from 252 wildcat sites, according to data from the mining regulator. Only two international firms that run industrial-sized gold mines paid more in royalties in 2021, a sign of how once artisanal prospecting has become big business in Brazil — at least for some.

In August, federal prosecutors filed a civil suit against F.D’Gold and two other brokers seeking the immediate suspension of all activities and payment of 10 billion reais ($1.8 billion) in social and environmental damages.

The complaint alleges the companies failed to take actions that would have prevented the illegal extraction of a combined 4.3 metric tons from protected areas and Indigenous territories, where mining is not allowed. Dirceu said his company complies with all laws and has implemented extra controls, but he acknowledged that determining the exact origin of the gold it obtains is “impossible” at present. He has proposed an industry-wide digital registry to improve transparency.

The ongoing suit is the result of a study published in July by the Federal University of Minas Gerais which found that as much as 28% of Brazil’s gold produced in 2019 and 2020 was potentially mined illegally. To reach that conclusion, researchers combed through 17,400 government-registered transactions by F.D’Gold and other buyers to pinpoint the location where the gold was purportedly mined. In many cases, the given location wasn’t an authorized site or, when cross-checked with satellite images, showed none of the hallmarks of mining activity — deforestation, stagnant ponds of waste — meaning the gold originated elsewhere.

Dirceu’s name and those of F.D’Gold and his mining company Ouro Roxo have popped up repeatedly over the years in numerous criminal investigations. He has been charged but never convicted.

A decade ago, federal prosecutors in Amazon’s Amapa state accused his company of knowingly purchasing illegal gold from a national park that was later transformed into gold bars. The charges were dismissed in 2017 after a federal judge in Brasilia ruled that F.D’Gold made the purchases legally, as evidenced by the invoices. Separate money laundering charges against Dirceu were also dismissed, due to lack of evidence. Dirceu has denied wrongdoing.

Whatever its origin, all the raw ore purchased by F.D’Gold ends up at Marsam.

F.D’Gold accounts for more than one-third of the gold Marsam processes, according to André Nunes, an external consultant for Marsam.

After almost two years as a partner in the Sao Paulo-based refiner, Dirceu stepped down last year and his daughter, Sarah Almeida Westphal, assumed management responsibilities. It was part of an effort to put different family members in charge of their own businesses, which function as separate legal entities, said Nunes, who previously worked for F.D’Gold.

“As much as it’s the same family, it’s important that each monkey has its own branch,” he said.

But the federal tax authority’s corporate registry shows Dirceu and Westphal remain partners in a machine rental and air cargo venture based in the Amazonian city of Itaituba, the national epicenter of prospecting. And Westphal could be seen working on a computer at F.D’Gold’s office on the day the AP interviewed Dirceu.

From Marsam, the gold travels far and wide. More than 300 publicly traded companies list Marsam as a refiner in responsible mining disclosures they are required to file with the U.S. Securities and Exchange Commission. The refiner has been virtually the only supplier to Brazil’s mint over the past decade, according to data provided to the AP through a freedom of information request.

“Why do they want our bars? Because they’re accepted all over the world,” said Nunes, who is also a member of Marsam’s six-person compliance committee.

Enabling such robust sales around the world is a seal of approval from the Responsible Minerals Initiative, or RMI.

The certification program, run by a Virginia-based coalition of manufacturers, emerged with the passage a decade ago of legislation in the U.S. requiring companies to disclose their use of conflict minerals fueling civil war in the Democratic Republic of Congo. Later, its standards were supplemented by tougher guidelines developed by the Paris-based Organization for Economic Cooperation and Development or OECD

Marsam is one of just two refiners in Brazil certified as compliant with RMI’s standards for responsible sourcing of gold, having successfully completed two independent audits. The last one was performed in 2018 by UL Responsible Sourcing, an Illinois-based consultancy.

But its ties to Dirceu’s family and its strategic positioning at the pinch point between the Amazon rainforest and global commerce raises questions about its previously unexamined role in the processing and sale of gold allegedly sourced from off-limit areas.

Marsam hasn’t been accused by prosecutors of any wrongdoing and insists that it only refines gold, not sell it, on behalf of third-party exporters and domestic vendors.

The company in 2016 introduced a supply chain policy, which it has updated over the years, requiring it to seek out information from suppliers whenever they are publicly linked to illicit activities. They are also expected to analyze a mandatory declaration of origin form submitted by each client. No such risks were identified in the most recent RMI report and Marsam was moved to a lower risk category requiring an audit once every three years.

Critics say one problem is that the OECD’s guidelines that RMI measures companies against pay scant attention to environmental crimes or the rights of Indigenous communities. Instead, they are geared toward risks stemming from civil wars and criminal networks. In Latin America, only Mexico, Colombia, and Venezuela — where drug cartels or guerrilla insurgencies are active — are classified as conflict-affected and high-risk areas deserving greater scrutiny for sourcing practices.

But the influx of illegal miners into Indigenous territories has been on the rise in recent years in Brazil — sometimes ending in bloodshed.

In May, hundreds of prospectors raided a Munduruku village, setting houses on fire, including one that belonged to a prominent anti-mining activist. The attack followed clashes farther north in Roraima state, where miners in motorboats and carrying automatic weapons repeatedly threatened a riverside Yanomami settlement. In one incident, two children, ages 1 and 5, drowned when a shooting sent people scattering into the woods.

In their suits against F.D’Gold and the two other brokers, prosecutors blame expanding mining activity for the illegal clearing in 2019 and 2020 of some 5,000 hectares of once pristine rainforest located on Indigenous territories as well as exacerbating “internal rifts that may be irreconcilable.”

Experts say these kinds of activities barely register in corporate boardrooms where sourcing decisions are made and given the seal of approval by international certification programs.

“Certification connotes a degree of certitude that isn’t at all possible in the gold industry, especially in Brazil,” said David Soud, an analyst at I.R. Consilium, which recently prepared a report for the OECD on illegal gold flows from neighboring Venezuela. “The result is a lot of blind spots that can easily be exploited by bad actors.”

Some of those blind spots are created by Brazil’s own weak oversight.

Under Brazilian law, securities brokers like F.D’Gold can’t be held responsible if the prospector whose ore they buy lies about its provenance. Nor is there any effective way to track the information provided at the point of sale.

It’s a system that inhibits tracking and accountability at best, and at worst enables willful ignorance as a means to launder illegal gold, according to wildcat mining experts including Larissa Rodrigues of the environmental think tank Choices Institute. For starters, experts say there need to be electronic invoices feeding a database that allows information to be verified.

“The supply chain is absorbing gold that doesn’t come from that chain. We know this happens,” said Rodrigues. “It’s a fact that fraud exists, but you can’t prosecute because you can’t prove it.”

Dirceu didn’t deny the possibility that F.D’Gold has unwittingly bought dirty gold. But he insists F.D’Gold, as an entity regulated by Brazil’s powerful central bank, follows the law and goes beyond what is required — such as hiring in 2020 two companies to monitor through satellite imagery the sources of its gold.

“The moment we had knowledge this could be happening, we hired them,” he said.

As president of the nation’s gold association, he claims to have been pushing since at least 2017 a plan to create a digital profile of every participant in the supply chain, complete with the garimpeiro’s photo, fingerprints and ID number.

“Digitalization and automation is the start of traceability,” he said. “The more legality, the more security there will be for our activities.”

Yet for all the apparent industry goodwill, and the support of Brazil’s tax authority, the proposal remains just that — an idea that hasn’t even been taken up by Congress. In the past two decades, the central bank hasn’t revoked authorization for any company that purchases gold.

For its part, Marsam says it uses its “best efforts” to identify the origin of the metals it refines. That includes requiring clients to sign affidavits attesting to the metal’s legality, demanding original invoices and conducting client visits to verify they have systems in place to prevent fraud.

But it doesn’t visit the mines themselves — something that RMI requires of refiners operating only in high-risk jurisdictions.

“We have to be diligent, but not do work that isn’t ours,” Nunes said. Asked when was the last time Marsam suspended a client it suspects of trading in dirty gold he shook his head, struggling to recall.

“I don’t remember it ever happening,” Nunes said before finally harkening back to one instance more than a decade ago.

RMI wouldn’t discuss prosecutors’ allegations against F.D’Gold, despite its close affiliation with Marsam, citing confidentiality agreements to encourage refiners to participate in its grievance process.

In a statement, it said that it takes all allegations “very seriously” and works with companies to address concerns. As part of that process, refiners are expected to trace activities all the way back to the mine whenever red flags are detected. If they don’t then address the concerns, they will be removed from the conformant list.

A 2018 report by the OECD found that while RMI’s standards are aligned with its guidelines there are significant gaps in the way RMI and other industry initiatives carry out audits, relying more on a refiner’s policies and procedures than its due diligence efforts. RMI-approved auditors also demonstrated a lack of basic technical skills and familiarity with the OECD guidelines, the study found.

“There was also an observed absence of curiosity, professional skepticism and critical analysis,” according to the report. RMI said it has since strengthened implementation efforts and is awaiting the outcome of a new assessment being conducted for the European Union.

Additional analysis in 2017 by Kumi, a London-based consulting firm that advises the OECD, found that only 5% of 314 end-user companies then registered with RMI, most of them U.S. based, had policies on sourcing conflict materials that were in line with the OECD guidelines.

“End-user companies set the tone for what happens in their supply chains,” said Andrew Britton, managing director of Kumi, which is conducting a new assessment of certifiers now for the European Commission. “It’s really important that companies’ due diligence on their supply chains really probes into potential risks and is not simply a box-ticking exercise.”

While land grabbing by ranchers, loggers and prospectors is hardly new in the Amazon, never before has Brazil had a president as outspokenly favorable to such interests.

Bolsonaro campaigned for the nation’s top job with promises of unearthing the Amazon’s vast mineral wealth, and his support for prospectors has encouraged a modern-day gold rush.

Bolsonaro’s father prospected for gold at Serra Pelada, where Dirceu first saw gold mining, and the president sometimes draws on his upbringing to rally support from prospectors. While campaigning, he aired videos in the Amazon region in which he boasted of sometimes pulling over at jungle stream and pulling a pan from a car to try his luck.

“Interest in the Amazon isn’t about the Indians or the damn trees; it’s the ore,” he told a group of prospectors at the presidential palace in 2019, vowing to deploy the armed forces to allow their operations to continue unfettered.

Then in May 2021, he attacked environmentalists for trying to criminalize prospecting.

“It’s really cool how people in suits and ties guess about everything that happens in the countryside,” he said sarcastically.

Beyond the rhetoric, Bolsonaro’s administration recently introduced legislation that would open up Indigenous territories to mining — something federal prosecutors have called unconstitutional and activists warn would wreak vast social and environmental damages.

Dirceu said he opposes allowing mining of Indigenous lands unless local people support the activity and are given first priority to pursue it themselves. But even as he fashions himself a reformer from the inside, he’s also benefitted from the current free-for-all. For one, he doesn’t even consider prospectors working without a permit to be illegal — just irregular.

Given persistent efforts to deregulate gold extraction, calls by Dirceu and the gold association to increase accountability over the gold supply chain “ring hollow,” said Robert Muggah, who oversees an initiative on environmental crime in the Amazon at think tank Igarape Institute.

Soon, Dirceu may stand to profit even more. Recently, F.D’Gold received approval to begin exporting directly. Dirceu said the company is currently seeking clients abroad and hopes to begin shipments soon.

If he succeeds, it means that, for the first time, someone will have a hand in the entirety of Brazil’s gold supply chain: from the Amazon where the gold is mined, to the outposts where it is first sold, to the planes that bring the ore to his daughter’s refinery in Sao Paulo and, finally, into the hands of foreign buyers.

“It’s really important to understand that the nature of gold extraction in countries like Brazil is linked, ineluctably, to the global markets,” said Muggah.
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The federal government is moving forward with a plan to let teenagers drive big rigs from state to state in a test program. 

Currently, truckers who cross state lines must be at least 21 years old, but an apprenticeship program required by Congress to help ease supply chain backlogs would let 18-to-20-year-old truckers drive outside their home states. 

The pilot program, detailed Thursday in a proposed regulation from the Federal Motor Carrier Safety Administration (FMCSA), would screen the teens, barring any with driving-while-impaired violations or traffic tickets for causing a crash. 

But safety advocates say the program runs counter to data showing that younger drivers get in more crashes than older ones. They say it’s unwise to let teenage drivers be responsible for rigs that can weigh 80,000 pounds and cause catastrophic damage when they hit lighter vehicles. 

The apprenticeship pilot program was required by Congress as part of the infrastructure bill signed into law November 15. It requires the FMCSA, which is part of the Transportation Department, to start the program within 60 days. 

The American Trucking Associations, a large industry trade group, supports the measure as a way to help with a shortage of drivers. The group estimates that the nation is running over 80,000 drivers short of the number it needs, as demand to move freight reaches historic highs. 

Under the apprenticeship, younger drivers can cross state lines during 120-hour and 280-hour probationary periods, as long as an experienced driver is in the passenger seat. Trucks used in the program have to have an electronic braking crash mitigation system and a forward-facing video camera, and their speeds must be limited to 65 mph. 

Continued monitoring

After probation, the younger drivers can drive on their own, but companies have to monitor their performance until they are 21. No more than 3,000 apprentices can take part in the training at any given time. 

The FMCSA must reach out to carriers with excellent safety records to take part in the program, according to the Transportation Department. 

The program will run for up to three years, and the motor carrier agency has to turn in a report to Congress analyzing the safety record of the teen drivers and making a recommendation on whether the younger drivers are as safe as those 21 or older. Congress could expand the program with new laws. 

The test is part of a broader set of measures from the Biden administration to deal with the trucker shortage and improve working conditions for truck drivers. 

In a statement, Nick Geale, vice president of workforce safety for the trucking associations, noted 49 states and Washington, D.C., already allow drivers under 21 to drive semitrailers, but they can’t pick up a load just across a state line. 

“This program creates a rigorous safety training program, requiring an additional 400 hours of advanced safety training, in which participants are evaluated against specific performance benchmarks,” Geale said. The program will ensure that the industry has enough drivers to meet growing freight demands, he said. 

But Peter Kurdock, general counsel for Advocates for Highway & Auto Safety, said federal data show that younger drivers have far higher crash rates than older ones. “This is no surprise to any American who drives a vehicle,” he said. 

Putting them behind the wheel of trucks that can weigh up to 40 tons when loaded increases the possibility of mass casualty crashes, he said. 

Kurdock said the trucking industry has wanted younger drivers for years and used supply chain issues to get it into the infrastructure bill. He fears the industry will use skewed data from the program to push for teenage truckers nationwide. 
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Secretary-General Antonio Guterres said Thursday the United Nations is “in a race against time” to prevent millions of Afghans from falling deeper into a severe economic and humanitarian crisis. 

“Livelihoods across the country have been lost. More than half the population of Afghanistan now depends on life-saving assistance,” Guterres told reporters at U.N. headquarters. “Without a more concerted effort from the international community, virtually every man, woman and child in Afghanistan could face acute poverty.” 

He said the situation has become so desperate that parents have sold their babies in order to feed their other children, and health facilities are overflowing with malnourished children. 

Guterres’ call comes two days after the United Nations launched its biggest humanitarian appeal ever for more than $5 billion to assist 28 million people inside Afghanistan and in five neighboring countries this year. 

Last year, the U.N. and its partner agencies reached more than 18 million people across the country. 

Economic collapse 

The secretary-general said the biggest driver of the current crisis is the free fall of Afghanistan’s economy, which he warned must not be allowed to collapse. 

“For our part, the United Nations is taking steps to inject cash into the economy through creative authorized arrangements, but it is a drop in the bucket,” he said. 

Guterres said the country’s Central Bank must be preserved and assisted, and a way found for the conditional release of Afghan foreign currency reserves.

“Without creative, flexible and constructive engagement by the international community, Afghanistan’s economic situation will only worsen,” he warned.

Over the past two decades, Afghanistan’s economy has been heavily dependent on foreign aid to survive. Some 75% of the former government’s budget was donor-funded, as was 40% of its GDP. 

International donors have urged the Taliban to form an inclusive government and respect the rights of women as a condition for the release of more aid, which the group has not done.

Since the Taliban took over the government in August 2021, the suspension of most international aid has contributed to the breakdown in many basic services, including electricity, health services and education. Inflation is rampant, and the price of ordinary goods is beyond the reach of most Afghans. 

The U.N. has been raising the alarm for several months, saying there needs to be a mechanism for U.S. dollars from outside Afghanistan to be exchanged for Afghanis, the local currency, inside the country. 

In response to a question, the U.N. chief said the United States has a very important role to play in shoring up Afghanistan’s economy because most of the global financial system operates in U.S. dollars, and because Washington has frozen billions of Afghan assets to keep them out of the Taliban’s hands. 

The Taliban have repeatedly called for lifting international sanctions and for access to Afghanistan’s Central Bank assets. 

Last month, World Bank donors agreed to release $280 million from its Afghanistan Reconstruction Trust Fund. The bank had paused disbursements after the Taliban takeover. The funds were disbursed to UNICEF and the World Food Program. Guterres urged donors to make the remaining $1.2 billion available to assist Afghans in getting through the winter. 

The secretary-general also reiterated his call on the Taliban to make good on pledges to respect the rights of women and girls. Their oppression of women during their previous hold on power in Afghanistan is one of the main reasons that donors are reluctant to allow them access to funds.
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First-time claims for U.S. unemployment compensation increased unexpectedly last week to their highest level since mid-November, suggesting some employers may be laying off workers as the omicron variant of the coronavirus surges throughout the country and curtails some business operations.

The Labor Department said Thursday 230,000 filed for jobless benefits, up 23,000 from the week before, but the figure was still below the 256,000 figure recorded in mid-March, 2020, when the coronavirus first swept into the United States and businesses started laying off workers by the hundreds of thousands.

For the most part, employers have been retaining their workers and searching for more as the United States continues its rapid economic recovery from the coronavirus pandemic. The country’s unemployment rate dropped in December to 3.9%, not far above the five-decade low of 3.5% recorded before the pandemic disrupted the world’s biggest economy.  

Many employers are looking for more workers, despite about 6.9 million workers remaining unemployed in the United States.  

At the end of November, there were 10.4 million job openings in the U.S., but the skills of available workers often do not match what employers want, or the job openings are not where the unemployed live. In addition, many of the available jobs are low-wage service positions that the jobless are shunning.  

U.S. employers added only 199,000 new jobs in December, a lower-than-expected figure. But overall, 6.3 million jobs were created through 2021 in a much quicker recovery than many economists had originally forecast a year ago.  

The U.S. economic advance is occurring even as President Joe Biden and Washington policy makers, along with consumers, are expressing concerns about the biggest increase in consumer prices in four decades – 7% at an annualized rate in December.

The surging inflation rate has pushed policy makers at the country’s central bank, the Federal Reserve, to move more quickly to end their asset purchases they had used to boost the country’s economic recovery, by March rather than in mid-2022 as originally planned.  

Minutes of the Fed board’s most recent meeting showed that policy makers are eyeing a faster pace for raising the benchmark interest rate that they have kept at near zero percent since the pandemic started.

The Federal Reserve has said it could raise the rate, which influences the borrowing costs for loans made to businesses and consumers, by a quarter-percentage-point three times this year to tamp down inflationary pressures.

Meanwhile, government statistics show U.S. consumers are paying sharply higher prices for food, meals at restaurants, gasoline at service stations, and for new and used vehicles.
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China’s expanding sphere of influence and economic reach in Europe is met with a mixture of praise and complaints in the Greek port of Piraeus. Athens reporter Laurent Laughlin has the details.
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U.S. consumer prices jumped 7% in December compared to a year earlier, the highest inflation rate in 40 years, the government’s Labor Department reported Wednesday.

Higher prices coursed throughout the U.S. economy in 2021, with the biggest increases since 1982. The annualized jump in December was up from the 6.8% figure in November and was a half-percentage point gain over the course of a month.

Analysts say robust consumer demand collided with coronavirus-related supply shortages, pushing up prices over the year for big ticket items like cars and furniture, but more importantly for must-buy, everyday purchases like food and gasoline for motorists.

The rapidly rising costs for consumers have caught the attention of the White House and policy makers at the country’s central bank, the Federal Reserve, even as they say they expect inflation to remain high throughout 2022.

President Joe Biden has called for the Federal Trade Commission to investigate “mounting evidence of anti-consumer behavior by oil and gas companies.” The Fed is signaling new efforts to rein in inflation by ending its direct financial support of the economy in March, sooner than originally planned, and to increase its benchmark interest rate that influences borrowing costs for businesses and consumers.

Federal Reserve Chairman Jerome Powell told a congressional committee Tuesday that getting prices down to more stable levels was key to ensure a lasting recovery from the pandemic.

“If inflation does become too persistent, if these high levels of inflation become too entrenched in the economy or people’s thinking, that will lead to much tighter monetary policy from us, and that could lead to a recession and that would be bad for workers,” Powell told lawmakers.

For consumers, inflation is often more of a daily fact of life than other aspects of the American economy that have recovered smartly since the coronavirus pandemic first swept into the U.S. in March 2020.

The U.S. economy added a record-setting 6.4 million jobs last year, the unemployment rate dropped from 6.3% in January to 3.9% in December and rank-and-file workers’ hourly paychecks rose by 5.8%. Government assistance checks sent to all but the wealthiest American households helped many families. 

But prices consumers paid rose markedly.

Government statistics showed that gasoline prices paid by motorists at service stations were up 58% last year, while the price of used cars and trucks were up 31% and new vehicles by 11%.

Meat, poultry and fish prices were up 13%, furniture and bedding by nearly 12%. Fast-food and casual dining places raised their prices by nearly 8%.
…

Cyberthreats and the growing space race are emerging risks to the global economy, adding to existing challenges posed by climate change and the coronavirus pandemic, the World Economic Forum said in a report Tuesday.  

The Global Risks Report is usually released ahead of the annual elite winter gathering of CEOs and world leaders in the Swiss ski resort of Davos, but the event has been postponed for a second year in a row because of COVID-19. The World Economic Forum still plans some virtual sessions next week. 

Here’s a rundown of the report, which is based on a survey of about 1,000 experts and leaders:  

World outlook 

As 2022 begins, the pandemic and its economic and societal impacts still pose a “critical threat” to the world, the report said. Big differences between rich and poor nations’ access to vaccines mean their economies are recovering at uneven rates, which could widen social divisions and heighten geopolitical tensions. 

By 2024, the global economy is forecast to be 2.3% smaller than it would have been without the pandemic. But that masks the different rates of growth between developing nations, whose economies are forecast to be 5.5% smaller than before the pandemic, and rich countries, which are expected to expand 0.9%.  

Digital dangers 

The pandemic forced a huge shift — requiring many people to work or attend class from home and giving rise to an exploding number of online platforms and devices to aid a transformation that has dramatically increased security risks, the report said.  

“We’re at the point now where cyberthreats are growing faster than our ability to effectively prevent and manage them,” said Carolina Klint, a risk management leader at Marsh, whose parent company Marsh McLennan co-authored the report with Zurich Insurance Group and SK Group.  

Cyberattacks are becoming more aggressive and widespread, as criminals use tougher tactics to go after more vulnerable targets, the report said. Malware and ransomware attacks have boomed, while the rise of cryptocurrencies makes it easy for online criminals to hide payments they have collected.  

While those responding to the survey cited cybersecurity threats as a short- and medium-term risk, Klint said the report’s authors were concerned that the issue wasn’t ranked higher, suggesting it’s a “blind spot” for companies and governments. 

Space race 

Space is the final frontier — for risk.  

Falling costs for launch technology has led to a new space race between companies and governments. Last year, Amazon founder Jeff Bezos’ space tourism venture Blue Origin and Virgin Galactic’s Richard Branson took off, while Elon Musk’s Space X business made big gains in launching astronauts and satellites.  

Meanwhile, a host of countries are beefing up their space programs as they chase geopolitical and military power or scientific and commercial gains, the report said.  

But all these programs raise the risk of friction in orbit.  

“Increased exploitation of these orbits carries the risk of congestion, an increase in debris and the possibility of collisions in a realm with few governance structures to mitigate new threats,” the report said.  

Space exploitation is one of the areas that respondents thought had among the least amount of international collaboration to deal with the challenges.  

Experts and leaders responding to the survey “don’t believe that much is being done in the best possible way moving forward,” World Economic Forum’s managing director, Saadia Zahidi, said at a virtual press briefing from Geneva.  

Other areas include artificial intelligence, cyberattacks and migration and refugees, she said.  

Climate crisis  

The environment remains the biggest long-term worry.  

The planet’s health over the next decade is the dominant concern, according to survey respondents, who cited failure to act on climate change, extreme weather, and loss of biodiversity as the top three risks.  

The report noted that different countries are taking different approaches, with some moving faster to adopt a zero-carbon model than others. Both approaches come with downsides. While moving slowly could radicalize more people who think the government isn’t acting urgently, a faster shift away from carbon intense industries could spark economic turmoil and throw millions out of work.  

“Adopting hasty environmental policies could also have unintended consequences for nature,” the report added. “There are still many unknown risks from deploying untested biotechnical and geoengineering technologies.” 
…

Warning that high inflation could make it harder to restore the job market to full health, Federal Reserve Chair Jerome Powell said Tuesday that the Fed will raise interest rates faster than it now plans if needed to stem surging prices.

With America’s households squeezed by higher costs for food, gas, rent, autos and many other items, the Fed is under pressure to rein in inflation by raising rates to slow borrowing and spending. At the same time, the economy has recovered enough that the Fed’s ultra-low-interest rate policies are no longer needed.

“If we have to raise interest rates more over time, we will,” Powell said during a hearing of the Senate Banking Committee, which is considering his nomination for a second four-year term.

The stark challenge for Powell if he is confirmed for a new term, as expected, was underscored by the questions he faced Tuesday from both Democratic and Republican senators. They pressed him to raise rates to reduce inflation, though without ramping up borrowing costs so much that the economy tumbles into a recession.  

Fed officials have forecast three increases in their benchmark short-term rate this year, though some economists say they envision as many as four hikes in 2022.  

Powell’s nomination is expected to be approved by the committee sometime in the coming weeks and then confirmed by the full Senate with bipartisan support. At Tuesday’s hearing, he drew mostly supportive comments from senators from both parties. A Republican first elevated to the chair by then-President Donald Trump, Powell has also been credited by many Democrats for sticking with ultra-low-rate policies to support rapid hiring for the past 18 months.  

In his testimony, Powell rebuffed suggestions from some Democratic senators that rate increases would weaken hiring and potentially leave many people, particularly lower-income and Black Americans, without jobs. Fed rate increases usually boost borrowing costs on many consumer and business loans and have the effect of slowing the economy.

But Powell argued that rising inflation, if it persists, also poses a threat to the Fed’s goal of getting nearly everyone who wants a job back to work. Low-income families have been particularly hurt by the surge in inflation, which has wiped out the pay increases that many have received.

“High inflation is a severe threat to the achievement of maximum employment,” he said.

The economy, the Fed chair added, must grow for an extended period to put as many Americans back to work as possible. Controlling inflation before it becomes entrenched is necessary to keep the economy expanding, he said. If prices keep rising, the Fed could be forced to slam on the brakes much harder by sharply raising interest rates, threatening hiring and growth.  

Powell won praise from Ohio Democratic Sen. Sherrod Brown, the chairman of the committee, and Pennsylvania Sen. Pat Toomey, the senior Republican on the panel.  

“The president is putting results over partisanship, re-nominating a Federal Reserve chair of the other political party,” Brown said. “As chair, together with President Biden, he has helped us deliver historic economic progress.”

“There is broad bipartisan backing for Chairman Powell’s re-nomination,” Toomey added.

Still, Toomey also criticized some of the Fed’s 12 regional banks for holding events that addressed climate change and “so-called racial justice,” which, Toomey argued, went far beyond the Fed’s mandate. He cited one event, organized by the Federal Reserve Bank of Boston, in which he said participants called for defunding police.  

“The troubling politicization of the Fed puts its independence and effectiveness at risk,” Toomey said.

And Sen. Richard Shelby, an Alabama Republican, criticized Powell for the central bank’s initial characterization of the price spikes that began this spring as “transitory.”

“I’m concerned if the Fed missed the boat on addressing inflation sooner, a lot of us are,” Shelby said. “As a result of that, the Fed under your leadership has lost a lot of credibility.”

Inflation has soared to the highest levels in four decades, and on Wednesday the government is expected to report that consumer prices jumped 7.1% over the past 12 months, which would be the largest such jump since 1982.

Powell said the Fed mistakenly expected that supply chain bottlenecks driving up prices for goods such as cars, appliances and furniture would not last nearly as long as they have. Once unsnarled, prices for things like used cars, which have spiked in the past year, would come back down, he said.  

But for now, those supply chain problems have persisted, and while there are signs they are loosening, Powell said that progress is limited. He noted that many cargo ships remain docked outside the port of Los Angeles and Long Beach, the nation’s largest, waiting to unload.  

The number of people working or looking for work also remains far below pre-pandemic levels, Powell noted. Millions of Americans have retired early or are avoiding jobs because of fear of the coronavirus. The Fed had anticipated that more of those people would return to the workforce than have done so.  

The smaller workforce has forced businesses to offer much higher pay to attract and keep employees. Powell said that isn’t mainly why prices are high right now, but it “can be an issue going forward for inflation.”

Economists and former Fed officials are raising concerns that the Fed is behind the curve on inflation. Last Friday’s jobs report for December, which showed a sharp drop in the unemployment rate to a healthy 3.9%, and an unexpected wage increase, has helped fan those concerns. While lower unemployment and higher pay benefit workers, those trends can potentially fuel rising prices by encouraging more spending.  

At the Fed’s most recent meeting in December, Powell said the central bank was rapidly accelerating its efforts to tighten credit with the goal of reining in inflation. The Fed will stop buying billions of dollars of bonds in March, ahead of its previously announced goal of doing so in June. Those bond purchases have been intended to encourage more borrowing and spending by lowering longer-term rates.  

And Fed officials’ expectation that they will raise short-term rates three times this year marks a sharp shift from September, when they were divided over doing it even once.  

The flood of new omicron infections won’t slow the Fed’s shift toward policies more appropriate for an economy getting back to normal, Powell said at the hearing, because so far it doesn’t appear to be weighing on the economy.  

“It is really time for us to move away from those emergency pandemic settings to a more normal level,” he added. “It’s a long road to normal from where we are.”
…

As the raging omicron variant of COVID-19 infects workers across the nation, millions of those whose jobs don’t provide paid sick days are having to choose between their health and their paycheck.

While many companies instituted more robust sick leave policies at the beginning of the pandemic, some of those have since been scaled back with the rollout of the vaccines, even though omicron has managed to evade the shots. Meanwhile, the current labor shortage is adding to the pressure of workers having to decide whether to show up to their job sick if they can’t afford to stay home. 

“It’s a vicious cycle,” said Daniel Schneider, professor of public policy at the Harvard Kennedy School of Government. “As staffing gets depleted because people are out sick, that means that those that are on the job have more to do and are even more reluctant to call in sick when they in turn get sick.” 

Low-income hourly workers are especially vulnerable. Nearly 80% of all private sector workers get at least one paid sick day, according to a national compensation survey of employee benefits conducted in March by the U.S. Bureau of Labor Statistics. But only 33% of workers whose wages are at the bottom 10% get paid sick leave, compared with 95% in the top 10%. 

A survey this past fall of roughly 6,600 hourly low-wage workers conducted by Harvard’s Shift Project, which focuses on inequality, found that 65% of those workers who reported being sick in the last month said they went to work anyway. That’s lower than the 85% who showed up to work sick before the pandemic, but much higher than it should be in the middle of a public health crisis. Schneider says it could get worse because of omicron and the labor shortage. 

What’s more, Schneider noted that the share of workers with paid sick leave before the pandemic barely budged during the pandemic — 50% versus 51% respectively. He further noted many of the working poor surveyed don’t even have $400 in emergency funds, and families will now be even more financially strapped with the expiration of the child tax credit, which had put a few hundred dollars in families’ pockets every month. 

The Associated Press interviewed one worker who started a new job with the state of New Mexico last month and started experiencing COVID-like symptoms earlier in the week. The worker, who asked not to be named because it might jeopardize their employment, took a day off to get tested and two more days to wait for the results.

A supervisor called and told the worker they would qualify for paid sick days only if the COVID test turns out to be positive. If the test is negative, the worker will have to take the days without pay, since they haven’t accrued enough time for sick leave.

“I thought I was doing the right thing by protecting my co-workers,” said the worker, who is still awaiting the results and estimates it will cost $160 per day of work missed if they test negative. “Now I wish I just would’ve gone to work and not said anything.” 

A Trader Joe’s worker in California, who also asked not to be named because they didn’t want to risk their job, said the company lets workers accrue paid time off that they can use for vacations or sick days. But once that time is used up, employees often feel like they can’t afford to take unpaid days.

“I think many people now come to work sick or with what they call ‘allergies’ because they feel they have no other choice,” the worker said. 

Trader Joe’s offered hazard pay until last spring, and even paid time off if workers had COVID-related symptoms. But the worker said those benefits have ended. The company also no longer requires customers to wear masks in all of its stores. 

Other companies are similarly curtailing sick time that they offered earlier in the pandemic. Kroger, the country’s biggest traditional grocery chain, is ending some benefits for unvaccinated salaried workers in an attempt to compel more of them to get the jab as COVID-19 cases rise again. Unvaccinated workers enrolled in Kroger’s health care plan will no longer be eligible to receive up to two weeks paid emergency leave if they become infected — a policy that was put into place last year when vaccines were unavailable.

Meanwhile, Walmart, the nation’s largest retailer, is slashing pandemic-related paid leave in half — from two weeks to one — after the Centers for Disease Control and Prevention reduced isolation requirements for people who don’t have symptoms after they test positive. 

Workers have received some relief from a growing number of states. In the last decade, 14 states and the District of Columbia have passed laws or ballot measures requiring employers to provide paid sick leave, according to the National Conference of State Legislatures.

On the federal front, however, the movement has stalled. Congress passed a law in the spring of 2020 requiring most employers to provide paid sick leave for employees with COVID-related illnesses. But the requirement expired on Dec. 31 of that same year. Congress later extended tax credits for employers who voluntarily provide paid sick leave, but the extension lapsed at the end of September, according to the U.S. Department of Labor. 

In November, the U.S. House passed a version of President Joe Biden’s Build Back Better plan that would require employers to provide 20 days of paid leave for employees who are sick or caring for a family member. But the fate of that bill is uncertain in the Senate. 

“We can’t do a patchwork sort of thing. It has to be holistic. It has to be meaningful,” said Josephine Kalipeni, executive director at Family Values @ Work, a national network of 27 state and local coalitions helping to advocate for such policies as paid sick days. 

The U.S. is one of only 11 countries worldwide without any federal mandate for paid sick leave, according to a 2020 study by the World Policy Analysis Center at the University of California, Los Angeles. 

On the flipside are small business owners like Dawn Crawley, CEO of House Cleaning Heroes, who can’t afford to pay workers when they are out sick. But Crawley is trying to help in other ways. She recently drove one cleaner who didn’t have a car to a nearby testing site. She later bought the cleaner some medicine, orange juice and oranges.

“If they are out, I try to give them money but at the same time my company has got to survive,” Crawley said. ″If the company goes under, no one has work.” 

Even when paid sick leave is available, workers aren’t always made aware of it. 

Ingrid Vilorio, who works at a Jack in the Box restaurant in Castro Valley, California, started feeling sick last March and soon tested positive for COVID. Vilorio alerted a supervisor, who didn’t tell her she was eligible for paid sick leave — as well as supplemental COVID leave — under California law. 

Vilorio said her doctor told her to take 15 days off, but she decided to take just 10 because she had bills to pay. Months later, a co-worker told Vilorio she was owed sick pay for the time she was off. Working through Fight for $15, a group that works to unionize fast food workers, Vilorio and her colleagues reported the restaurant to the county health department. Shortly after that, she was given back pay. 

But Vilorio, who speaks Spanish, said through a translator that problems persist. Workers are still getting sick, she said, and are often afraid to speak up. 

“Without our health, we can’t work,” she said. “We’re told that we’re front line workers, but we’re not treated like it.” 
…

At the start of 2022 most measures show the U.S. economy is booming, with an unemployment rate that is approaching record lows and a demand for goods that has imports from the rest of the world surging.

On Friday, the Labor Department announced that the unemployment rate had fallen to 3.9% in December, even as the economy produced a smaller-than-expected increase of 199,000 new jobs. The report came a day after the Commerce Department announced that U.S. imports in November had increased by 4.6% over the previous month to $304.4 billion.

The rising level of imports contributed to a trade deficit of $80.2 billion for the month, which is close to the record high of $81.4 billion set in September. While a large trade deficit is seen as a negative by many, particularly former President Donald Trump, who went to great lengths to close the gap between imports and exports, economists say it points to a U.S. economy that is leading the global recovery from the pandemic-induced recession.

“When we do better than everybody else, we get a bigger trade deficit,” said economist Gary Hufbauer, a senior fellow with the Peterson Institute for International Economics.

US as economic engine

It’s a popular misconception that a trade deficit is a sign of bad economic times in the United States, Hufbauer told VOA. “Not at all. It’s an indicator of great times in the U.S., relative to other countries. And that’s exactly where we are. We’re doing very well, relative to other countries, so the dollar tends to be stronger, that tends to increase the trade deficit, because demand is greater.”

The benefits of a strong U.S. economy are felt around the world, as other countries find U.S. consumers eager to purchase their goods.

China, as usual, was the largest net beneficiary of the U.S. trade deficit, selling U.S. consumers $28.4 billion more than it purchased. The U.S. ran a significant trade deficit with other trade partners as well, including the European Union, at $19.4 billion; Mexico, at $11 billion; Germany, at $6.1 billion; and Canada, at $5.4 billion.

The U.S. runs a trade surplus with only a few partners. The largest is a $4.5 billion surplus with all of Central and South America. The only other surpluses of $1 billion or more are with Hong Kong, at $1.6 billion, and Brazil, at $1.0 billion.

Job growth continues

The monthly jobs report from the Department of Labor, released Friday, told a similar story of an economy that continues to demonstrate a strong recovery from the pandemic recession. The 199,000 figure for the month of December was lower than expected but contributed to an average of about 537,000 jobs per month over all of 2021.

All told, the unemployment rate fell from 6.4% at the beginning of the year to 3.9% in December.

Not all of the decline in unemployment can be attributed to job growth. Millions of American workers dropped out of the labor force, largely as a result of the pandemic. That means that even though the unemployment rate is low, there are still about 3.6 million fewer workers in the U.S. than there were in the months prior to the beginning of the pandemic.

“We still have aways to go in terms of absorbing the labor force, and people who’ve left the labor force, as well as population growth, but it’s certainly a positive sign,” said Elise Gould, senior economist with the Economic Policy Institute, a Washington think tank.

On a more sobering note, the report revealed that when it comes to employment, the economic recovery has not been evenly distributed. From November to December, the unemployment rate among Black Americans rose from 6.1% to 6.5%. The problem is particularly acute among Black women, who face an unemployment rate of 5.6%, double the rate of white women.

Omicron is wild card

What the most recent economic data cannot yet tell us is the degree to which the surging omicron variant of the coronavirus has had on U.S. employment. The Labor Department uses a “reference week” each month when calculating job numbers, and the reference week in December was unusually early, encompassing Dec. 5-11, before the omicron surge began in earnest.

“Most of it happened in the second half of the month,” Gould told VOA. “So, it’s really not being reflected here at all. On February 4, when the January data comes out, I’m sure we will see a pretty big impact — hopefully a short-lived one — but probably a significant impact on the labor market.” 

 
…

The European Union is under increasing pressure to further ease rules on airport take-off and landing slots to cut the number of “ghost flights” airlines are running to retain them.

Carriers say the requirement for them to use 50% of their slots — down from 80% in pre-pandemic days — or lose them is forcing them to operate empty or half-empty flights.

A sluggish return to air travel, as travelers shrink away from the omicron COVID variant and quickly changing rules for passengers, is dragging out the practice longer than they planned.

Belgium’s Brussels Airlines, for instance, says it will have to operate 3,000 under-capacity flights up to the end of March.

Its parent company Lufthansa warned last month it expected it would have to run 18,000 “pointless flights” over the European winter.

Belgium’s transport minister, Georges Gilkinet, has written to the European Commission urging it to loosen the slot rules, arguing the consequences run counter to the EU’s carbon-neutral ambitions.

The current reduced quotas were introduced in March last year in a nod to the hardship airlines faced as COVID washed over Europe for a second year running, shriveling passenger numbers.

In December, the commission said the 50% threshold would be raised to 64% for this year’s April-to-November summer flight season.

“Despite our urgings for more flexibility at the time, the EU approved a 50%-use rule for every flight schedule/frequency held for the winter. This has clearly been unrealistic in the EU this winter against the backdrop of the current crisis,” a spokesperson for the International Air Transport Association (IATA) told AFP.

He said the commission needed to show more “flexibility … given the significant drop in passengers and impact of omicron numbers on crewing planned schedules.”

But a commission spokesperson on Wednesday said the EU executive believed “the overall reduced consumer demand… is already reflected in a much-reduced rate of 50% compared to the usual 80%-use rate rule.”

The spokesperson, Daniel Ferrie, said: “The Commission expects that operated flights follow consumer demand and offer much needed continued air connectivity to citizens.” 

 
…

U.S. employers added 199,000 new jobs in December, 50,000 fewer than November, the Labor Department reported Friday, as business continue to struggle to fill vacancies due to American workers’ reluctance to return to the workforce during the ongoing coronavirus pandemic.

Despite the hiring slowdown, December’s jobless rate fell to a healthy 3.9% — a 22-month low — from November’s 4.2%.

December’s modest jobs gains belie the fact that 2021 was one of the best years for U.S. workers in decades, even though the pandemic caused the previous year to be one of the job market’s worst since the government began tracking hiring in 1939.

A monthly average of 537,000 jobs were added to the economy in 2021, the Labor Department said Friday, and a record 6.4 million jobs were created”America is back to work,” President Biden declared Friday before reporters at the White House. “The increase in Americans joining the labor force was the fastest this year of any year since 1996.”

Companies posted a record high number of job vacancies in 2021 and offered sharply higher pay to try to attract and retain employees, a record number of whom quit their jobs in search of higher-quality positions.

Biden said U.S. workers saw their wages increase last year by nearly 16%, “the highest in history.”

“Wage gains for all workers who are not supervisors went up more in 2021 than any year in four decades. There’s been a lot of press coverage of people quitting their jobs,” Biden said. “Well, today’s report tells you why: Americans are moving up to better jobs with better pay, with better benefits. That’s why they’re quitting their jobs.”

December’s report reflects the state of the economy early in the month, before the highly contagious omicron variant sickened millions of people in the U.S., forcing the cancellation of thousands of commercial flights and leading to reduced traffic at bars and restaurants and some school closures.

Many economists believe job growth may slow in January and possibly in February because of the omicron outbreak, which has forced millions of sick workers to quarantine at home, potentially disrupting employers, including hospitals, airlines and ski resorts.

Some information for this report came from The Associated Press and Reuters.
…

First-time claims for U.S. unemployment compensation remained near a five-decade- low level last week, with employers retaining their workers and searching for more as the United States continues its rapid economic recovery from the coronavirus pandemic.

The Labor Department said Thursday that 207,000 jobless workers made first-time claims for unemployment compensation, up 7,000 from the revised figure of the week before. The weekly total of new claims has hovered around 200,000, for a month now.

Even with the increase in claims last week, the figures from the last several weeks were well below the 256,000 total in mid-March 2020, when the pandemic first swept into the United States and employers started laying off workers by the hundreds of thousands.

The diminished number of claims for unemployment benefits, down from a 2021 high of 900,000 in one week last January, shows that many employers are hanging on to their workers, even as millions have quit jobs to move to other companies offering higher pay and more benefits.

Many employers are looking for more workers, despite about 6.9 million workers remaining unemployed in the United States.

At the end of November, there were 10.4 million job openings in the U.S., but the skills of available workers often do not match what employers want, or the job openings are not where the unemployed live. In addition, many of the available jobs are low-wage service positions that the jobless are shunning.

U.S. employers added only 210,000 new jobs in November, a lower-than-expected figure. But overall, the U.S. has added 6.1 million jobs through the first 11 months of the year in a much quicker recovery than many economists had originally forecast a year ago. The unemployment rate dropped in November to 4.2%, a figure some experts had projected would not be reached until mid-2024.

Information on job growth in December and the unemployment rate is set for release on Friday.

The U.S. economic advance is occurring even as President Joe Biden and Washington policy makers, along with consumers, voice concerns about the biggest increase in consumer prices in nearly four decades – 6.8% at an annualized rate in November.

The surging inflation rate has pushed policy makers at the country’s central bank, the Federal Reserve, to move more quickly to end their asset purchases they had used to boost the country’s economic recovery, by March rather than in mid-2022 as originally planned.

On Wednesday, minutes of the Fed board’s most recent meeting showed that policy makers are eyeing a faster pace for raising the benchmark interest rate that they have kept at near zero percent since the pandemic started.

The Federal Reserve has said it could raise the rate, which influences the borrowing costs for loans made to businesses and consumers, by a quarter of a percentage point three times this year to tamp down inflationary pressures.
…

Royal Caribbean and Norwegian Cruise Line on Wednesday canceled sailings amid rising fears of omicron-related coronavirus infections that have dampened the nascent recovery of the pandemic-ravaged cruise industry.

Royal Caribbean Cruises Ltd. called off its Spectrum of the Seas cruise for January 6 after nine guests on its January 2 trip were identified as close contacts to a local Hong Kong COVID-19 case.

The contacts have tested negative, but the cruise ship will return to Kai Tak Cruise Terminal in Hong Kong on January 5 to test all guests and crew who must take a second test on January 8, the company said.

A similar decision to cancel trips by Norwegian Cruise Line Holdings Ltd. was made against the backdrop of the United States reporting the highest daily tally of any country for new coronavirus infections on Monday.

“Due to ongoing travel restrictions, we’ve had to modify a few sailings and unfortunately have had to cancel,” the 17-ship strong cruise operator said, with the embarkation dates for a few canceled sailings as far out as late April.

The cruise line, which requires everyone on board to be vaccinated, has also had to cut short a 12-day round trip from Miami on its Norwegian Pearl ship, citing “COVID-related circumstances.”

The U.S. Centers for Disease Control and Prevention had last week advised people to avoid cruise travel after launching investigations into onboard cases on more than 90 ships. The health agency starts a scrutiny if at least 0.1% of the guests test positive.

Norwegian Cruise said guests, who were supposed to embark on the canceled sailings on the eight ships, will receive full refunds and bonus credits for future bookings.

The omicron-led travel uncertainty is also causing guests on other sailings to cancel their bookings as a few ships have also had to skip ports due to onboard infections.

“We booked the cruise last March and assumed that things would be getting back to normal… by mid-December, I was mentally prepared for a change of plans,” said Holly Bromley, a consulting arborist, who canceled her booking on Norwegian Epic.

Meanwhile, bigger rival Carnival Corp. said it has not canceled any upcoming voyages, but its shares fell on Wednesday to close down 2.6%. Royal Caribbean lost 2.1% and Norwegian Cruise Line Holdings 3.6%.

 
…

U.S. human rights and trade groups on Tuesday blasted Tesla’s New Year’s Eve announcement that it had opened a showroom in Xinjiang, the latest foreign firm caught up in tensions related to the far-western Chinese region where detention camps have drawn heavy criticism. 

The Council on American-Islamic Relations, the largest U.S. Muslim advocacy organization, said Tesla was “supporting genocide.” Similar criticism came from a U.S. trade group, the Alliance for American Manufacturing, and U.S. senator Marco Rubio. 

“Elon Musk must close Tesla’s Xinjiang showroom,” the Council on American-Islamic Relations said on its official Twitter account, referring to Tesla’s founder. 

Xinjiang has become a significant point of conflict between Western governments and China in recent years. U.N. experts and rights groups estimate more than a million people, mainly Uyghurs and members of other Muslim minorities, have been detained in camps there. 

U.S. President Joe Biden and members of the U.S. Congress have pressed companies to distance themselves from Xinjiang. On December 23, Biden signed a bill barring imports of goods made in the region.

White House spokeswoman Jen Psaki said she would not comment directly on Tesla’s action, but generally the “private sector should oppose the PRC human rights abuses and genocide in Xinjiang,” she said. “The international community, including the public and private sectors, cannot look the other way when it comes to what is taking place in Xinjiang.” 

The United States has labeled China’s treatment of ethnic Uyghurs and other Muslims in Xinjiang as genocide. The United States and a few other countries plan a diplomatic boycott of the Beijing Winter Olympics in February over the issue. 

China has rejected accusations of forced labor or any other abuses there, saying that the camps provide vocational training and that companies should respect its policies. 

Tesla, the world’s most valuable automaker, announced on December 31 that it was opening a showroom in Xinjiang’s regional capital, Urumqi.

“On the last day of 2021 we meet in Xinjiang,” Tesla said in a post on its official Weibo account. 

Other U.S. and European automakers or their Chinese partners have showrooms in Urumqi, a city of some 3 million people. German automaker Volkswagen AG has a car factory near Urumqi.

Tesla did not immediately respond to a request for comment for this story. The carmaker operates a factory in Shanghai and is ramping up production there amid surging sales in China. China has also become an export hub for Teslas headed to Europe and other markets. 

Musk last year had to smooth over relations with Chinese authorities after Teslas were banned from government properties because of concerns that data collected by the vehicles’ cameras was being transferred out of China. 

A number of foreign firms in recent months have been tripped up by tensions between the West and China over Xinjiang, as they try to balance Western pressure with China’s importance as a market and supply base. 

“There is this tension between global investors and the Chinese government. The global investors want market access. And the Chinese government says the cost of access is acquiescence,” said Michael Dunne, chief executive of Zo Zo Go, an investment adviser that works with automotive and technology companies doing business in China. 

In July, Swedish fashion retailer H&M reported a 23% drop in local currency sales in China for its March-May quarter after it was hit by a consumer boycott in March for stating publicly that it did not source products from Xinjiang. 

Last month, U.S. chipmaker Intel faced similar calls after telling its suppliers not to source products or labor from Xinjiang, prompting it to apologize for “the trouble caused to our respected Chinese customers, partners and the public.” 

Although some have been trying to reduce their supply chain exposure to the region, especially as Washington bans imports such as Xinjiang cotton and blacklists Chinese companies that it says have aided Beijing’s policy there, many foreign brands operate stores there.

 
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