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North American Edition
7th July 2025
 
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THE HOT STORY

U.S. economy added 147K jobs in June

In June, U.S. employers added 147,000 jobs, showcasing the labor market's resilience amid uncertainties surrounding President Trump's economic policies. The Labor Department's monthly report also revealed that the unemployment rate decreased to 4.1%, down from 4.2% in May, with hiring surpassing economists' expectations. State government payrolls climbed by the most since the start of 2023, led by education, while employment at local governments also surged. Health care payrolls rose 59,000, the least in four months. Employment also moderated in leisure and hospitality, as a 20,000 increase in June followed a downward revision of similar size in May. Payrolls declined in manufacturing, wholesale trade and business services. Average hourly wages increased by 0.2% from May and 3.7% year-over-year, to $36.30. The Labor Department's weekly jobless report, meanwhile, revealed that initial claims for unemployment benefits fell 4,000 in the seven days to June 28th; the four-week moving average declined 3,750 to 241,500, while total claims, reported with a one-week lag, were unchanged at 1.964m. 
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TAX

Tip tax break has key limits

Service workers in the U.S. are eagerly awaiting the elimination of taxes on their tips, but the fine print in Republicans' new law could limit savings for some workers. Only the first $25,000 in tips is free from income taxes, and tipped workers will still face the 7.65% combined payroll taxes that fund Social Security and Medicare. Workers won't be able to benefit if federal officials say their type of service job doesn't qualify. The "no tax on tips" measure, which started as a campaign promise by President Trump during a 2024 stop in Nevada, is now a key element of the tax-and-spending megabill signed into law Friday. The cut could save some service workers thousands of dollars a year in federal taxes. More than a third of tipped workers don't make enough to pay federal income taxes, including many low-income workers with children and students who work in part-time tipped jobs. The relief will take effect this tax year, including for tips already received.
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WORKFORCE

Trump healthcare law cuts Medicaid deeply

President Trump’s new tax-and-spending bill slashes over $1trn in healthcare funding, primarily from Medicaid, prompting alarm from hospitals, doctors, and advocacy groups. The law enacts work requirements, income checks, and caps on state-directed payments, likely reducing Medicaid enrollment by 8.7m over a decade. Hospitals may lose $665bn in Medicaid payments while facing $84bn in added uncompensated care costs by 2034. “We’re going to have many millions more uninsured individuals showing up needing care,” said Beth Feldpush of America’s Essential Hospitals. Analysts expect service cutbacks, job losses, and rising premiums due to a shrinking insured pool.

"Essential economy" remains important - Farley

Ford CEO Jim Farley has warned that AI could eventually replace half of U.S. white-collar jobs, joining other leaders like Amazon’s Andy Jassy in raising concerns about AI’s impact on the workforce. Speaking at the Aspen Ideas Festival, Farley emphasized the growing importance of the "essential economy" — skilled trades that build, move, and repair — arguing that vocational training has been undervalued and outdated. He highlighted major shortages in trade sectors, with hundreds of thousands of open roles in factories and construction. Farley urged a national mindset shift to recognize the value of trade work as a vital path to economic opportunity and sustainability.

AI reshapes promotion processes at work

The promotion landscape is evolving dramatically due to AI, with a recent survey by Resume Builder revealing that 77% of managers using AI tools rely on them for promotion decisions. Notably, over 20% of these managers allow AI to make final decisions without human input. This shift underscores the importance of understanding AI's role in career advancement. Companies are adopting AI for its scalability, speed, objectivity, and cost-effectiveness. AI evaluates employees based on performance analytics, communication patterns, and skill gaps, making it essential for employees to optimise their digital presence. Stacie Haller, Chief Career Advisor at Resume Builder, emphasises the need for human oversight, stating, “It's essential not to lose the ‘people' in people management.” Embracing AI can enhance career prospects, but organisations must ensure ethical implementation to maintain trust.

AI tools may shift manager status

Retailers are integrating AI tools into operations—automating resume screening, labor forecasting, scheduling, and performance management—but this shift could affect store managers’ exemption status. Exempt vs. nonexempt classification hinges on responsibility, judgment, and time spent on key duties. As AI reduces managers’ discretion over hiring, scheduling, and oversight, employers must reassess roles to ensure compliance. If managerial tasks are minimized or reassigned, store managers may no longer meet criteria for exempt status under labor laws, potentially requiring reclassification as hourly employees.

Job market woes for recent U.S. grads

The job market for recent graduates in the United States is facing significant challenges, with an unemployment rate of 5.8%, the highest since November 2013, excluding the pandemic period. The overall hiring for new graduates has decreased by 16% in 2025, with sectors like technology and finance particularly affected. Analysts attribute this trend to post-pandemic hiring slowdowns and economic uncertainty under President Trump's administration. Gregory Daco, chief economist at EY-Parthenon, noted that the hiring slowdown "disproportionately" impacts recent graduates. With rising student debt and a challenging job market, many young people are left feeling overwhelmed and uncertain about their futures.

EPA puts 139 employees on leave

The U.S. Environmental Protection Agency (EPA) has placed 139 employees on administrative leave after they signed a "Declaration of Dissent" criticising President Donald Trump's policies. The letter accused the government of "harmful deregulation" and fostering a "culture of fear" within the agency. The EPA said in a statement: "The Environmental Protection Agency has a zero-tolerance policy for career bureaucrats unlawfully undermining . . . the administration's agenda." The action coincides with significant staff reductions and a major reorganisation within the agency, which aims to cut regulatory red tape and promote fossil fuel development.
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LEGAL

Trump administration targets transgender care

The Trump administration has initiated investigations into health care organizations, focusing on their ability to refuse care for transgender patients based on religious or moral grounds. The Department of Health and Human Services (HHS) is particularly scrutinizing the University of Michigan Health system following claims from former employee Valerie Kloosterman, who alleged she was fired for seeking a religious exemption from providing gender-affirming care. Elizabeth Sepper, a professor at the University of Texas, noted that the Church Amendments primarily allow objections to abortions and sterilizations, stating they “don't apply to gender-affirming care, by their very own text.” Kloosterman's attorney, Kayla Toney, expressed satisfaction with HHS's actions, emphasizing the importance of enforcing federal statutes that protect religious health care providers. The investigations signal a shift in HHS's approach, potentially complicating the treatment of transgender patients while prioritizing the rights of health care workers.

Fear grips LA's restaurant scene

In Los Angeles, the Filipino restaurant Lasita has been affected by recent ICE raids, leaving staff and patrons in fear. Co-owner Chase Valencia described the atmosphere as "spooked" following the arrival of multiple ICE vans. The restaurant industry, heavily reliant on immigrant labor, has seen a significant drop in reservations and staffing issues. Corissa Hernandez, owner of Nativo, expressed frustration over the lack of clarity regarding immigration laws, stating: "We're business owners, we're not immigration experts." Many restaurant owners are now hosting workshops to educate their staff on their rights during potential ICE encounters.
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HEALTH & WELLBEING

Amazon urged to improve conditions for pregnant workers

Celebrities including Jane Fonda and Cynthia Nixon are urging Amazon to address claims that pregnant warehouse workers are denied reasonable accommodations, causing health risks and miscarriages. A letter signed by several public figures accuses Amazon of violating the Pregnant Workers’ Fairness Act, despite the company stating most pregnancy-related requests are granted. The letter cites nearly 150 worker reports of unsafe tasks and mistreatment. It follows broader criticism of Amazon's working conditions ahead of Prime Day, though Amazon insists injury rates have declined.
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CORPORATE GOVERNANCE

Boeing appoints new CFO amid turnaround campaign

Boeing has appointed former Lockheed Martin executive Jesus 'Jay' Malave as its new chief financial officer, effective August 15th, when he will replace Brian West, who is to remain as an advisor to chief executive Kelly Ortberg. Mr. Ortberg has been shaking up Boeing’s management since arriving at Boeing in August. Defense chief Ted Colbert left last year shortly after Mr. Ortberg’s arrival. Boeing’s quality chief, its chief information officer and its top lobbyist have also departed the company. 
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INTERNATIONAL

China's HR companies urged to cut 'dishonest' practices

Several human resources associations in China, including the Shanghai Human Resources Consulting Association, have urged local HR companies to eliminate "dishonest practices" and promote healthy industry development, China Daily reports. They emphasised the need for transparency, and called for firms to display their credentials and service details openly. The initiative also advocates for fair recruitment practices to discourage discriminatory hiring based on ethnicity, gender, or religion. Furthermore, the associations propose the creation of a mechanism to share a list of such "dishonest" companies.

Glovo pauses contested heatwave bonus for couriers in Italy

Food delivery platform Glovo has suspended a "heat bonus" for its couriers in Italy amid criticism from labour unions and politicians. Glovo recently introduced the bonus, worth just a few euro cents per delivery and rising in step with temperatures, to compensate riders working during a blistering heatwave in which the government has issued a red alert for 18 cities. Labour unions criticised the scheme, saying it encouraged gig workers to continue riding their scooters during the fierce heat. "Glovo resolved to suspend at national level the bonus system for deliveries during the hottest hours of the day," the company said in a statement.
 
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