EuroWire September 2014

Transatlantic cable

There are now 2.2 unemployed people for every available job. In 2009, there were nearly seven times as many unemployed workers as there were available jobs. At the same time, more American workers are quitting their jobs, generally a sign that they either found better jobs or are con dent they will be able to do so. At the worst of the recession there were far more workers being laid o or discharged than employees who quit. Now, about four workers are quitting for every three who are discharged. Whatever it may mean for employers, for whom turnover can be a problem, the rise in the quit rate can be taken as a good sign for the general economy. In brief . . . † The United States economy grew 1.9 per cent in 2013. While some states experienced substantial growth in gross domestic product (GDP), helping to drive the national economy, others lagged. According to the Bureau of Economic Analysis, these are the states with the lowest GDP growth rates last year: Maine (No 10 with GDP growth of 0.9 per cent); Illinois, Alabama, Tennessee, Missouri, New York, Pennsylvania, Virginia, Maryland; and Alaska (lowest with GDP growth of -2.5 per cent). The ten states with the fastest-growing economies were: Nebraska (No 10 with GDP growth of 3 per cent; South Dakota, Texas, Utah, Colorado, Idaho, Oklahoma, West Virginia, Wyoming; and North Dakota (highest at 9.7 per cent). Concerns are raised about ‘orthotropic’ panels slated for deck replacement on the Verrazano-Narrows Bridge in New York The use of Chinese-sourced fabricated steel in the replacement of the upper deck of the Verrazano – the longest bridge span in the Americas – was controversial from the rst. Early complaints about the project turned on the overseas sourcing of the material. As reported by Judy L Randall of the Staten Island Advance , it has now drawn re from another source: workers on the project raising non-conformance issues with welding on panels said to be key to replacing the 40-year-old concrete grid deck with lighter-weight steel. (“Use Of Chinese Steel on Verrazano-Narrows Bridge Project Continues to Spark Concern,” 9 th June) Sources familiar with the $235 million, three-year undertaking told the Advance that a rst shipment of 150 so-called orthotropic panels, of a total of more than 960 to be used on the bridge, was slated to leave China for the US in late July. In all, 16,000 tons of fabricated Chinese steel will be used in the massive upper deck replacement project. Another 3,000 tons of US-sourced steel will serve ancillary purposes. The same sources told Ms Randall that the quality assurance sub-consultant to US contractor Tutor Perini (Sylmar, California) had called attention to welding issues with the panels and led nearly three dozen non-conformance noti cations. These reportedly remained unresolved in mid-June. Steel

The former Mexican business is now more fully automated and closer to US and Canadian customers. “It’s less about o shoring today,” said Mr Szczupak, “and more about how to optimise the footprint in the various places where you operate.” † But the homing trend does not infer any slackening-o . Mr Mo att pointed out that global companies expect more and more of their future sales to come from emerging markets. Accordingly, he said, they must continue to navigate the complexities of manufacturing, hiring, shipping, and dealing with regulatory agencies all over the world. And they must develop a tolerance for uncertainty. Mr Mo att told the Free Press : “You just have to get used to operating in what I call the new abnormal.” Of related interest . . . † An inquiry launched 11 th June by Joaquín Almunia, the European Union’s competition commissioner, could – if it leads to changes – undermine tax strategies pursued by many American technology companies that have their international headquarters in countries in the Euro bloc. The California-based computer giant Apple Inc is one of three big multinational corporations that will be investigated. The e ort by the Brussels authorities is part of a global crackdown on loopholes that have allowed companies like Apple to use complex tax structures to pay small amounts of tax on operations outside the United States. The manoeuvres, critics say, allow corporations to operate as virtually stateless entities. According to lawmakers in the US, Apple – which is among the most pro table American companies – has avoided billions in taxes at home and around the world through a web of complex subsidiaries. In a report last year, the United States Senate Permanent Subcommittee on Investigations reported that Apple had “exploited a di erence between Irish and American tax residency rules” but had not broken any laws.

Employment

The US job market is looking up, by several measures

Five years after the 2009 onset of recession in the US, the rate of long-term unemployment (workers jobless for at least 15 weeks) has fallen to 3.1 per cent of the work force. The May reading is still high by historical standards but it has nally fallen below the short-term unemployment rate. The short-term rate, 3.2 per cent for the month, was lower than it had been over most of the last 40 years. And it is only a little above the 2.9 per cent reached in 2007, before the recession began. Not since 1953 had the rate been lower than that. In another encouraging sign for the US job market, the Labor Department in early June reported that the number of jobs open but un lled rose to 4.5 million in April: the most since 2007.

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September 2014