Boeing Strike Set to Impact US Jobs Report
The upcoming US jobs report, set to be released on Friday, is expected to be influenced by the ongoing Boeing machinist strike, which began on September 13. The strike, involving around 33,000 workers, will likely affect the overall employment numbers, with economists predicting a decrease of at least 50,000 jobs.
Strike Complicates Boeing’s Recovery Efforts
The strike has added to Boeing’s existing challenges, including safety, quality, and financial crises. The company’s new CEO, Kelly Ortberg, is working to steer the manufacturer out of these difficulties. However, the strike has made it even harder for Boeing to recover, with the unionized machinists rejecting a new proposal that included a 35% wage increase.
Government Intervention
The Biden administration has stepped in to urge the two sides to reach a deal. Acting Secretary of Labor Julie Su has met with both parties to address key bargaining issues. Despite these efforts, the strike continues, and its impact on the US employment numbers is expected to be significant.
Long-Term Consequences
Boeing’s impact on US employment numbers is expected to continue in the coming months. The company plans to cut 10% of its global workforce, or 17,000 people, with job-loss warning letters expected to be sent out in mid-November. These layoffs will further complicate the employment picture, making it harder to predict the exact impact on the jobs report.
Ripple Effect on Aerospace Supply Chain
The strike could also have a ripple effect on the fragile aerospace supply chain. Spirit AeroSystems, a Boeing fuselage maker, has already put around 700 workers on a 21-day furlough. If the strike lasts past November 25, the company may consider hundreds of additional furloughs or layoffs.
Uncertainty Ahead
As the US approaches the presidential election and the Federal Reserve’s meeting next week, the uncertainty surrounding the jobs report is higher than usual. The strike and its aftermath will likely have a significant but temporary impact on the employment numbers, making it crucial to monitor the situation closely.
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