What the Rates of Workers Switching Employers or Holding Multiple Jobs Can Tell Us

 The St. Louis Fed recently analyzed how the portion of American workers who work multiple jobs has changed since the pandemic. During the COVID-19, the rate of people working multiple jobs dipped to around 4%. This was significant because this was historically low. Since then, around March 2025, that rate had recovered to about 5.5% which translates to over 8 million people. Alongside that, the number of people working multiple part-time jobs also fell between March and July, which could indicate that some workers returned to full-time roles or quit their part-time employment.

These changes are important and have some implications for the labor market. Rising rates of people holding multiple jobs often indicate financial pressures or when money is tight. On the other hand, it’s important to consider that some of this increase may not be because of financial pressure, but rather done willingly because of life-style changes or related circumstances. At the end of the day, the consistency of millions of people working more than one job highlights the current challenges in the economy and home income. 

Source: https://www.stlouisfed.org/open-vault/2025/aug/workers-switching-employers-holding-multiple-jobs

Markets Stumble Out of Long Weekend

With Labor Day weekend coming to a close, the stock market opened September on a weak note. The S&P 500 fell roughly 0.7% and the Nasdaq 100 fell nearly 1% after large tech stocks pulled back. Nvidia was one of the biggest movers, losing 1.5% ahead of the market opening. Investors are worried about high-tech valuations and increasing U.S. government debt.

It wasn't just stocks under pressure; global bonds also sold off, pushing yields higher. The U.S. dollar posted its biggest one-day gain (about 0.9%) since July, following a six‑day losing streak. This was due to better-than-expected manufacturing data. Gold rose to an all‑time high of over $3,500 an ounce as investors expect possible interest rate reductions this month. 

Van Vuuren, A. J. (2025, September 1). Stocks fall as rising yields stir investor jitters: Markets wrap. Bloomberg. https://www.bloomberg.com/news/articles/2025-09-01/stock-market-today-dow-s-p-live-updates

The economy rebounded and has grown 3.3 percent in the second quarter

U.S. Economy Rebounds in Second Quarter 2025

  The U.S. economy showed a strong rebound this spring, bouncing back from a weak first quarter that was largely attributed to the Trump administration’s escalating of trade wars. According to the Commerce Department, gross domestic product (GDP) expanded at a 3.3% annual pace from April through June, an upward revision from the initial 3% estimate released in July.

This follows a difficult start to the year, when GDP contracted by 0.5% in the first three months of 2025. Economists largely blamed this downturn on a surge in imports as businesses rushed to stock up on foreign goods ahead of Trump’s tariffs. Since imports are subtracted from GDP, this created a temporary drag on growth.

In the second quarter, however, the trend reversed, imports fell at a 29.8% annual pace, boosting GDP growth by over 5 percentage points. While this provided a temporary lift, some economists caution that it does not necessarily signal long-term economic strength.

 President Donald Trump holds charts as he speaks about the economy in the Oval Office of the White House, Aug. 7, 2025, in Washington.

Q2 growth looked strong on paper, but most of it came from a one-time collapse in imports. Consumer spending is improving, but weak investment and shrinking government spending still suggest that more challenges may be ahead.

source: https://www.usnews.com/news/business/articles/2025-08-28/us-economy-grows-3-3-in-second-quarter-government-says-in-second-estimate-of-april-june-growth 

Global Music Industry Faces Slower Growth but Promises Long-Term Potential

     Last year the global music industry grew significantly less than it did in 2023, growing only 6.2% compared to 15.6%. Despite these current setbacks, analysts from Goldman Sachs are very optimistic about the future economic growth in the music industry. These projections are very bold, as Goldman Sachs is projecting that the industries revenue is going to almost double in the next 10 years reaching a new milestone of 200 million. However, this report explained that the path to reaching 100 million in 2024 is going to be a lot different in the next decade.

    There are going to be a lot of key factors that change the way the music industry generates revenue within the next 10 years. Emerging streaming markets that are specific to Africa, Asia, and Latin America are expected to develop as internet access in these areas grows a new wave of subscribers will join. Additionally an integration of video content is expected to arise as streaming services will make music videos, live sessions, and even interactive experiences. Lastly, new monetization models will surface giving artists more profit while increasing the engagement of the fans. Overall, even with a down year in growth for the music industry, experts believe with emerging streaming markets, new video content and monetization models the music industry will go nuclear in the next decade.

https://www.goldmansachs.com/insights/articles/global-music-revenues-are-forecast-to-double-to-200-million-in-2035

Germany issues with higher inflation and unemployment has reason for concern

        Germany, like much of Europe, is having a huge issue with unemployment and inflation issues in their economy this summer. Germany's inflation rose higher than expected to 2.1% in August while in July it rose at a much better 1.8% .During this core inflation, which strips out the food and energy inflation stayed at steady 2.7% while unemployment rose much higher with it reaching 6.4% which is well above where they want to be. These pressures are being compounded by wider issues of the newly implemented U.S. tariffs, which could have an even worse affect in the months ahead. 

    The U.S and EU struck a trade agreement in July, which included a 15% tariff rate on much of the exported goods into the U.S. economy. This has a huge affect on Germany because of their highly export-driven economy which could cause an overcapacity at home, lowering the prices of these goods. These decisions have already contracted the country's GDP expanding by 0.3% in quarter one, and then contracting by 0.3% in the next period. The full impact of the tariffs remain very much uncertain, but they could cause the Central Bank to consider cutting rates at their next couple of meetings. 

https://www.cnbc.com/2025/08/29/german-inflation-august-2025.html

Core inflation rose to 2.9% in July, highest since February

 President Trump has pursued aggressive trade policies such his inauguration, including the imposition of widespread tariffs. The Trump administration has argued that these measures would rebalance trade relations and kickstart the American economic growth. However, the ripple effects of these tariffs are now being seen in inflation data, specifically the personal consumption expenditures (PCE) price index. In July, core inflation rose to a 2.9% annual rate, a 0.1% increase from June and the highest annual rate since February. While this is in line with the forecasted rate, this increase signals that the tariff related costs are making their way to consumers. 

This places the Federal Reserve in a challenging position. With the inflation above 2%, the central bankers benchmark and concerns surrounding the job market growing, the federal reserve could still cautiously cut rates. The strength of the labor market will be the determining factor for rate cuts as stated by Morgan Stanley's Ellen Zentner, with the odds stilll favoring a September cut. 

In order to avoid long term strain on the market, policymakers may have to offset the effects of the tariffs with incentives or other targeted relief. Without this, consumers could continue to bear the brunt of the higher prices due to the elevated inflation rates and economic momentum could slow. 

Source: https://www.cnbc.com/2025/08/29/pce-inflation-report-july-2025.html 

Here’s how the U.S. Open’s signature Honey Deuce cocktail price stacks up against inflation

    The Honey Deuce cocktail, the US Open's signature cocktail, is becoming pricier by the year for tennis fans in New York. The drink, consisting of vodka, lemonade, and honeydew "tennis balls," now sells for a whopping $23. This price is 53% higher than what it was selling for in 2015. Inflation and the increase in the average price of alcoholic drinks are the main factors driving this price increase. If its price had simply kept pace with the Consumer Price Index, the Honey Deuce would cost just over $20 today. Despite six price hikes since 2012, the drink remains a staple of the tournament, served in a souvenir cup and symbolizing the fan experience at one of tennis’s biggest stages.

    Even with its steep cost, demand has only grown. More than 550,000 Honey Deuces were sold in 2024, generating nearly $13 million in revenue. This revenue is more than the combined earnings of the tournament champions! Economists point to “funflation” as part of the explanation, which explains how people are willing to pay premium prices for memorable experiences, whether that’s concerts, travel, or sporting events. Overall, the cocktail has become more of a tradition than a good for spectators looking to enjoy the US Open. 

Source: Honey Deuce: Here's how U.S. Open's signature cocktail's price stacks up against inflation

Trump’s immigration policy threatens key sectors of California’s economy, long reliant on immigrant workers

 Since taking office, President Trump has been adamant on enforcing immigration laws. His claims backing the controversial methods of expelling immigrants include improving the wages and cost of living for American-born citizens. Nevertheless, the American economy relies significantly on the inclusion and incentivization of immigrant workers. California, specifically, boasts a large immigrant portion of its labor force mostly in the agriculture, construction, and hospitality sectors. For instance, 63% of California's agriculture labor force is immigrants with nearly a quarter of them being undocumented. 

While a decrease in the amount of workers would increase the wages for American-born workers, overall productivity of the economy would decrease and GDP would likely fall. It is estimated that California could lose a potential $278 billion in GDP if the current pace of deportations continues. In this issue, we see the intersection of political policy and a nation's economic system. In the long run, labor shortages would likely return to a sustainable level but overall output may increase at a slower rate. Another alarming facet of this issue is the skills in the labor force. If a political administration decides to enforce stricter immigration laws, and immigrants make up a majority of these "blue-collar" industries, then there should be some incentivization in the short turn for domestic workers to pursue these jobs. Wages and salaries will entice this labor force; however, these will remain sticky in the short-term. Government policy makers should consider incentivization programs such as stimulus checks, debt forgiveness, or other benefits to solve what could potentially be a dramatic labor shortage.

https://www.cnbc.com/2025/09/01/trump-california-newsom-immigrant-workers.html

Cook to sue Trump over order to fire her from Federal Reserve

President Donald Trump announced the removal of Federal Reserve Governor Lisa Cook, one of seven members of the Fed’s Board of Governors. Trump claims she made false statements on mortgage documents. 

Cook responded by stating that she would not resign and would be pursuing legal action. The push to remove Cook highlights the broader pattern of pressure by Trump on the Fed as he also publicly expressed frustration with the Fed’s reluctance to aggressively cut interest rates. If this removal is upheld, it could weaken the institutional autonomy of the Fed, allowing for even more executive political influence over monetary policy. The uncertainty from this action could unsettle financial markets.

Article link: https://www.bbc.com/news/articles/cx275n8gx0ro

How the Fed losing its independence could affect Americans' everyday lives

 Dangers to Average Americans If the Fed Is No Longer Independent

President Trump's attempt to remove Fed Governor Lisa Cook, the first such removal attempt in the Fed's 112-year history, has prompted economists to warn that the Fed's independence is seriously threatened.

The Fed may be under pressure to cut short-term rates, which could lead to higher inflation and ultimately higher interest rates on mortgages, auto loans, and business credit.

Independent central banks are crucial because they are freed from political pressure to make tough choices that ultimately reduce inflation. Politically controlled Feds have the potential to overstimulate the economy and ultimately lead to instability.

The U.S. economic system may move away from market-driven capitalism and toward a model where monetary policy is more politically determined if the Fed loses its independence. This would erode the checks and balances in place to prevent unchecked inflation by blurring the distinction between monetary and fiscal policy. In time, this might:

• Undermine confidence in the dollar as a reliable worldwide reserve currency.

• Reduced confidence in investments as companies worry about unpredictable, politically driven rate changes.

• Change the government-market power dynamic so that politicians have more influence over economic cycles, rather than the Fed serving as a stabilizer.

To put it briefly, the United States would risk shifting from an economy based on rules, where predictability is provided by independent institutions, to one that is susceptible to transient political agendas.

Link

Kenya Airways’ Financial Struggles

Kenya Airways, often dubbed the “Pride of Africa,” has faced significant financial turbulence in 2025. The airline reported a pretax loss of 12.17 billion shillings (about $94 million) in the first half of the year, a dramatic reversal from a 634 million shilling profit recorded in the same period in 2024. This shift underscores not only operational challenges but also structural vulnerabilities within the national carrier.

A major factor behind the losses was the grounding of several Boeing 787-8 aircraft, which disrupted passenger operations and limited the airline’s ability to serve profitable long-haul routes. This technical setback reduced passenger numbers and slashed revenue during a period when global demand for air travel has been steadily recovering. High maintenance costs, coupled with fluctuations in global fuel prices, further squeezed margins.

In response, Kenya Airways has set an ambitious plan to raise at least $500 million in new capital by early 2026. The strategy centers on fleet modernization and expansion, which the airline views as critical to regaining competitiveness against regional and global rivals. By upgrading to more fuel efficient aircrafts and expanding their routes, they hopes to boost passenger numbers, cut operating costs, and reposition itself as a major hub carrier in East Africa.

The Key to Africa's Economic Integration

      African businesses have been struggling to keep up with the regional markets. The presence of previous colonialism has kept small and medium enterprises from expanding. This has created a halt in Africa's economic integration, as international trade and associated risks have continued to arise as an issue for trade finance stability. There have been small steps taken to increase intra-African trade by the implementation of the African Continental Free Trade Area (AfCFTA), which has a goal to reduce tariffs and non-tariff barriers. Since 2021, 49 countries have approved and continued to follow the removal of intracontinental trade barriers; thus, intra-African trade reached $192.2 billion by December 2023. Documenting a $5.9 billion increase since 2022, showing a positive increase in trade finance initiatives.

    Economists have put together a strategic list of initiatives to help African countries compete in global markets and support the growth of sustainable development. Investments in financial ecosystems could look like more infrastructure in roads, digital networks, and ports. However, based on findings from Afreximbank, the investment would have to amount to $130 - $170 billion annually to meet their fullest economic potential. There needs to be a movement towards partnerships with private-sector actors and development-finance institutions and the African government. If private investments had lower risk rates and access to concessional finance, there could be real change within Africa's economy. 

Article: https://www.project-syndicate.org/commentary/trade-finance-key-to-africa-economic-integration-growth-by-gwen-mwaba-2025-08

Why Netflix and Spotify Keep Raising Prices

    In early 2025, both Netflix and Spotify announced new subscription price increases that are already affecting millions of customers. Netflix raised the cost of its ad-free Standard and Premium plans in the United States, explaining that higher rates are needed to keep funding original programming while also covering the rising costs of production and operations. For years, streaming companies relied on low monthly prices to pull customers away from cable, but now that many households consider these services essential, providers see more room to push rates higher without losing too many subscribers.
    Spotify followed a similar path, expanding Premium price increases across much of Europe, Africa, and Latin America, moving the monthly cost from €10.99 to €11.99. These changes show the financial pressure facing major platforms and how dependent they are on customer loyalty to absorb additional costs. It also raises a bigger question about demand: how much longer will people accept paying higher prices before deciding that the cost no longer matches the value of what they’re getting?

Sources:
https://www.theverge.com/2025/1/21/24348682/netflix-price-increase-earnings-q4-2024 
https://www.barrons.com/articles/spotify-stock-prices-wall-street-213d4480 

Japan’s economy grows at a 1% pace in the last quarter despite Trump’s higher tariffs

https://apnews.com/article/japan-tariffs-trump-economy-gdp-4ed873e4162c84dafc3befc81b49c6e6 

In the most recent quarter, the Japanese economy grew 1% better than expected and was primarily boosted by exports. This comes despite the tariffs that were implemented by President Donald Trump. The U.S. imposed a 15% tax on all imports from Japan. However, this is a drop in tariffs for some products that were being taxed at 25%. The tariffs of 15% are still higher than the tax before the tariffs, but the drop from 25 to 15% enables more growth opportunities. Japan's GDP grew 0.3% compared to the previous fiscal quarter, which beat the analysts' estimations. Japan has experienced 5 straight quarters with fiscal growth, and a lot of the growth can be attributed to the 90-day break in tariffs, which allowed for businesses to rush ship products. This increased the country's exports by 2% during the break in tariffs.

The growth can also be attributed to the increased number of tourists visiting, which has helped economically by boosting economic growth. However, there has been a sense of resentment among residents as they now have to deal with more foreign visitors and the aspects that come with that. In addition, capital investment increased by 1.3% which is helping drive growth at a faster rate, but consumer spending remained weak at a 0.2% growth. With there being growth seen in the economy, Japan's central bank may go ahead to raise the benchmark interest rate to help cap inflation.  

The Sluggish Renaissance of U.S. Manufacturing

    Due to shifts from a manufacturing market to a service industry in the economy, the manufacturing industry has seen a downward trend in employment rates and its portion in its sector. As of the end of 2024, there are roughly 12.6 million people employed in the manufacturing business. This takes up around about 9.3% of total private sector employment. For reference, in 1960, manufacturing took up a sound 33.7%. In more recent years however, these numbers have stayed consistently around 12 million people, defying the constant downward trend in the past. 

Manufacturing employment has been slowly recovering, pushed by an upswing in the number of manufacturing facilities. Over the past decade, manufacturing employment grew by 5% (roughly 12.6 million people) and facilities grew 19% (roughly 401,000 facilities). About half of the sector’s increase in employment over the past 10 years was driven by the food manufacturing subindustry. That subindustry also contributed the most to the increase in manufacturing establishments during this period. 

source: https://www.stlouisfed.org/on-the-economy/2025/aug/sluggish-renaissance-us-manufacturing

Economy U.S. economy expanded 3.3% in Q2, with growth even stronger than initially thought

A recent analysis shows that the United States economy expanded 3.3% in Q2. This was a growth that was stronger than which many thought. Gross Domestic Product rose 3.3% in the quarter 2 period from April to June. The U.S. consumer spending rose to 1.6% with the initial estimate being 1.4%, this helped pushed the higher number. Critically, a measure called final sales to to private domestic rose to 1.9%, this was an increase from the previous number of 1.2%. The Federal Reserve watches this closely from the indication of demand and sales that occur within the United States borders, this is extremely important taking in the consideration of the uncertainty impact that Trump's tariffs create. 

In the first half of this year GDP has grown 2.1%, which is about a 1% increase in each quarter. The economy contracted 0.5% in the first quarter which was largely impacted by the rush of imports. Although, there is some good news. Consumption of American's is higher than what was originally thought to be. American's are still willing to spend regardless of the uncertainty and tariffs. Heather Long, the chief economists at the Navy Federal Credit Union stated, “Going forward, the economy is likely to stay in this slower speed mode with spending and growth around 1.5% as the tariffs become more visible to American consumers.” 

With the first couple months of the third quarter in the books the economy is growing at a 2.2% pace in Q3. 

Source: https://www.cnbc.com/2025/08/28/us-economy-grew-3point3percent-in-q2-growth-was-stronger-than-initially-thought.html

Posted by: Chanden Lee at 8/31/2025 12:24:00PM