February jobs report: DOGE federal layoffs show up amid gains

The February jobs report showed stronger-than-expected growth as275,000 jobs were created, surpassing estimates of 200,000. The unemployment rate rose, however, to 3.9%, with wage growth remaining constant. While healthcare and government job sectorsshowed strong gains, retail and manufacturing experienced some pullbacks. The mixed tone of the report shows there is some resilience to job creation and some underlying economic volatility. I think that this report means that the job market is continuing to grow but starting to show signs of a possible slowdown. The rise in unemployment, despitestrong job increases, suggests more people are leaving the labor pool or struggling to find employment. It will be important to pay attentionto if hiring remains firm in the upcoming months or the rise in unemployment is indicative of larger problems.

NBC NewsFebruary jobs report: DOGE federal layoffs show up amid gains

February 2025 ADP Report Shows Slower Hiring Among Growing Economic Concerns

The most recent ADP job report shows that private sector job creation took a significant dip in February with only 77,000 positions being added. This figure comes in far below the previous months number of 186,000 and the forecasted number of 148,000 for February. Sectors tied to trade, transportation, and utilities saw large losses of 33,000 likely due to tariff concerns. On a positive note from the report, 41,000 new positions in leisure and hospitality were created in addition to 27,000 new jobs related to professional and business services. The effect of job loss was mainly felt by smaller companies who saw a net loss while large firms of over 500 employees continued hiring adding 37,000 new workers. 

I believe that these numbers underscore a sense of caution in the labor market. It is definitely encouraging to see certain industries such as leisure, hospitality, and business services continuing to expand, however, the weak overall growth signals that firms may be more hesitant about hiring as they gauge current economic situations. In addition to this report, the market has reacted with multiple losing days as investors reacted to the news. It will be interesting to see how next months job report comes in and whether or not this slowing of jobs being added will continue.

Link: https://www.cnbc.com/2025/03/05/adp-jobs-report-february-2025-.html

The Newest Trade War and its Effect on the Stock Market

     With Trump's tariffs having increased the effect on the stock market is obvious. When Trump first came into office, we did see a significant rise in the stock market. However, the presidents foreign policy has all but cancelled out this gain. "The S&P 500 fell 1.2%, with more than 80% of the stocks in the benchmark index closing lower. The Dow Jones Industrial Average slid 1.6%. The Nasdaq composite slipped 0.4%." As it turns out, many U.S. businesses do rely on foreign imports to run at full efficiency. Furthermore, Canada, China, and Mexico are not going to accept these tariffs with open arms as China has already instituted tariffs with Canada and Mexico planning to follow suit. In the near future, expect to see larger price tags on the goods and services that you typically buy as these tariffs will likely increase prices for consumers. 

Thousands Rally to Protect National Park Jobs

In my previous blog, I addressed the significant job cuts occurring within our national parks, a consequence of shifting political policies following the new administration's arrival. I highlighted the potential impact of these cuts on both the rangers and the parks themselves, which could lead to maintenance issues, environmental damage, and harm to vital ecosystems. I urged readers to stay informed to help prevent severe harm to our natural wonders and the dedicated rangers who protect them. 

This past weekend, a proactive response emerged against these policies in the form of widespread protests. Thousands gathered at national parks across the country, from Yellowstone to the Great Smoky Mountains. Participants included park rangers, environmental advocates, families, and outdoor enthusiasts, all united to voice their concerns about the budget cuts. Many carried signs proclaiming “Save Our Parks” and “Protect Our Rangers.” The issue gained momentum on social media, with many, including myself, seeing posts under the hashtag #SaveOurParks. Petitions have also been launched to advocate for reversing these new policies. This movement is gaining traction on various fronts, urging politicians to prioritize the funding our national parks desperately need. 

The protesters understand the gravity of the situation and have chosen to stand up and speak out. They aim to inform policymakers about the risks associated with these initiatives. The protests have sparked a broader conversation about the long-term implications of the proposed cuts. Many are imploring policymakers to genuinely consider the future impact on our parks. While the cuts may appear to save money in the short term, we must contemplate their potential financial repercussions, which may include an increased entry fee that could deter visitors and ultimately harm park revenue. There's also the concern that these cuts could pave the way for private-sector partnerships aimed at offsetting costs that the government is reluctant to cover. 

Although the future remains uncertain, the overwhelming public response undoubtedly demonstrates that Americans are deeply committed to protecting their national parks. Policymakers now face a critical choice: will they heed the wishes of the people? This situation is an excellent demonstration of civic engagement, with citizens actively addressing pressing issues and urging lawmakers to take action. Now, protesters await a response from lawmakers. However, many insist this movement is far from over, pledging to continue their fight as budget discussions unfold.

Source: https://www.nytimes.com/2025/03/01/us/national-parks-trump-protests.html

Euro zone inflation dips to 2.4% in February as ECB bets point to sixth rate cut

This is more of a world economic news than strictly in the US, but with all the complications with tariffs and Ukraine, I feel it is still important. The Eurozone inflation was at 2.4% which is 10 basis points above what they had expected. The so-called core inflation was slightly higher than the regular reading at 2.6%. The slowdown of energy prices makes the slightly higher number not as bad as they would have expected. The geopolitical state of the world leaves room for uncertainty within the inflation realms. This is because trade with the United States is important for a few major European countries. To combat this, there is expected to be another cut by the central banks. The question arises, what else will they do monetarily to protect themselves from this uneasy time. 

 https://www.cnbc.com/2025/03/03/euro-zone-inflation-february-2025.html

 

The Implications of Making the 2017 Tax Cuts Permanent

Senate Republicans want to make the 2017 tax cuts permanent. While lower taxes sound great, they also mean less money for the government, leading to more borrowing. That’s where the debt spiral comes in. If the government keeps borrowing to make up for lost tax revenue, the national debt grows. And if it grows too much, it can slow down the economy in the long run. Some experts worry this could hurt future generations who will have to deal with that debt.

Supporters argue that lower taxes help businesses grow and create jobs, but it's unclear if that growth would cover the lost revenue. The big question is: Can we afford this without hurting the economy in the future?

Source: https://www.reuters.com/en/us-senate-plan-make-trump-tax-cuts-permanent-raises-debt-spiral-worry-2025-03-02/

The CFPB's Fight for Survival

The Trump administration and Elon Musk's Department of Government Efficiency (DOGE) are planning to drastically reduce the Consumer Financial Protection Bureau (CFPB) staff and basically shut down the agency. According to CFPB employees, the bureau leaders plan to fire almost all of its 1,700 workers in three stages, eventually leaving just 5 required positions. 

The CFPB was created after the 2008 financial crisis aiming to protect consumers, and has already seen big changes. It has closed its main office, started layoffs, and stopped most work. The bureau has also dropped several cases against financial firms. While the acting Director says the goal is efficiency, employee statements suggest the aim is to reduce the CFPB to the bare minimum required by law. This raises concerns about the agency's ability to fulfill its duties.

It's worth noting that the current administration can't eliminate the CFPB on its own. Since Congress created the agency through the Dodd-Frank Act, new legislation would be needed to formally eliminate it. This would likely require a supermajority in the Senate. However, the administration is using its power to severely limit the CFPB's operations, effectively trying to dismantle it from within.

The CFPB plays a crucial role in consumer protection. Created in the aftermath of the 2008 financial crisis, it implements and enforces consumer finance laws, issues new rules for financial institutions, and investigates companies suspected of unfair practices. The bureau also handles consumer complaints, provides financial education, and conducts research on consumer experiences with financial products. Since its inception, the CFPB has secured billions in relief for consumers and imposed significant penalties on companies violating consumer protection laws.

Read the article here: https://www.cnbc.com/2025/02/28/cfpb-leaders-and-elon-musk-doge-planned-to-fire-nearly-all-staff.html

Delay After Delay: What is Going on with Intel?

 Intel delays $28 billion Ohio chip factory in New Albany again, to 2030 or 2031

As Ohioans are expecting big things with Intel’s new factory in central Ohio, news of setbacks are discouraging residents. Originally, the factory was set to open in 2025, but has now experienced so many delays that the projection has been moved to 2030. As their goals became even more unrealistic, they realized that a re-evaluation of their timeline was going to cost them even more delays. These delays were made so Intel can align their operations better with the market demands so they can improve their capital responsibly. They want to make sure that everything is in line so that they can set “Ohio up for success,” says the executive vice president of Intel. It is important to note that many experts and government leaders have said that bringing semiconductor manufacturing back to the states is critical for national security. So, this factory is not only important for central Ohio’s economy, but the safety and security of the U.S as a whole. Intel has received $2.2 billion funding as part of the federal CHIPS Incentives Program, and at least $1.5 has gone towards the New Albany project. They also were set to receive $300 million in grants from the Ohio Department of Development to help with the construction of each factory as long as they were completed by 2028. While these setbacks are discouraging for everyone involved, Intel still forecasts the creation of 3,000 new jobs and $20 billion in capital investments for the future. As construction continues at a slower pace, Intel still shows its commitment to Ohio as they get everything in order for successful manufacturing.