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North American Edition
6th March 2026
 
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THE HOT STORY

Labor productivity surges on investment in AI

Labor productivity increased by 2.8% in the fourth quarter, surpassing forecasts and marking the strongest growth in five years, according to the Bureau of Labor Statistics. The rise in productivity, which reflects nonfarm employee output per hour, is attributed to companies investing in technology to enhance efficiency and manage labor costs. "The labor market is no longer a source of inflation," said Federal Reserve officials, as wage pressures remain contained. Despite a slowdown in economic growth due to the longest U.S. government shutdown, business investment continued to rise. Economists expect efficiency gains to persist, driven by ongoing investments in artificial intelligence. The report also indicated that unit labor costs rose by 2.8% in the fourth quarter, while worker compensation adjusted for inflation increased at the fastest rate in over a year.
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WORKFORCE

Weekly U.S. jobless claims remain flat

Initial unemployment claims held steady in the seven days to February 28th, according to the Labor Department's latest weekly report, reinforcing perceptions that the jobs market is stabilizing. Applications were unchanged at 213,000, just below the 215,000 predicted among economists polled by the Wall Street Journal. The four-week moving average fell to 215,750, while continuing claims, reported with a one-week lag, rose 46,000 to a seasonally-adjusted 1.868m. "There is nothing in the latest claims data to change our view that the Fed will keep policy steady until June," said Nancy Vanden Houten, lead U.S. economist at Oxford Economics. "The picture of the labor market gleaned from the claims data and other related statistics is not one of deterioration."
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STRATEGY

Merck to lay off around 150 employees at U.S. site

Merck is laying off 147 employees at its vaccine manufacturing plant in Durham, North Carolina. The cuts follow the company's decision to end production of its human papillomavirus vaccine Gardasil at the site “because of the recent worldwide reduction in demand for the product,” Amanda Taylor, VP of plant management in vaccine operations, said. "We continuously assess our operations and evolving business needs and adjust as needed to ensure the effectiveness of our manufacturing network in delivering reliable, compliant supply of our medicines and vaccines," a company spokesperson told Reuters.

Amazon cuts jobs in robotics unit

Amazon is laying off staff across its robotics unit. At least ​100 white-collar roles are affected. "We regularly review ⁠our organizations to make sure teams are best set up ​to innovate and deliver for our customers," Amazon said.
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REMUNERATION

UnitedHealth caps employee pay raises to 2%

UnitedHealth Group is limiting employee pay raises this year to between 0% and 2%, depending on performance.  The "meager" compensation increase comes as the company recently told an unspecified number of workers they were being laid off, Bloomberg reports.
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TAX

IRS reports 10% rise in tax refunds

Tax refunds have increased by over 10% in 2026, with the average refund amounting to $3,804, which is $351 more than last year, according to the Internal Revenue Service (IRS) report released on February 27th. Despite a 1.9% decline in the number of returns processed, the IRS has issued 28.7m refunds this year, totaling $109bn. The rise in refunds is partly due to changes in tax laws from the “One Big Beautiful Bill,” which eliminated taxes on overtime and tips and increased standard deductions. The IRS anticipates that average refunds will exceed $1,000 in 2026, reflecting a significant increase from previous years. Taxpayers have until April 15th 2026, to file their returns.
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LEGAL

Delaware Supreme Court upholds corporate law overhaul

Delaware's top court has upheld a 2025 law that overhauled the state's widely used corporate code to limit lawsuits against powerful business leaders.  Under the law, known as Senate Bill 21, if a deal is approved by a board committee that has a majority of independent directors or if it is approved by a vote by public shareholders, investors cannot challenge it in court. Previously, both steps were required and the board committee had to be entirely made up of independent directors. Governor Matt Meyer said in a statement: “This past year was a period of monumental growth for Delaware, with a sharp increase in corporate incorporations in 2025, both in absolute terms and relative to other states. In short, SB-21 is working, and I’m glad it will continue to be the law.”  

AI deepfakes spark new workplace disputes

The misuse of artificial intelligence (AI) to create fake, sexually explicit content is precipitating workplace disputes and potential liability for employers. Lawsuits have emerged, including cases from a Washington State Patrol trooper and a Nashville TV meteorologist, who claim their employers failed to address AI-generated harassment. Robert T. Szyba, a partner at Seyfarth Shaw, observes: "The advent of deepfakes . . . presents employers with a whole new frontier of challenges."
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RISK

Iran hits Amazon data centers in jolt to Gulf AI drive

Drone strikes targeting Amazon Web Services (AWS) data centers in the UAE and Bahrain have highlighted the vulnerability of major cloud infrastructure in the Middle East. AWS has confirmed that two UAE sites were hit, disrupting regional services including banking apps. Analysts believe this marks the first military attack on major “hyperscaler” cloud providers, raising concerns for Gulf states such as the UAE and Saudi Arabia that are investing billions to become global artificial intelligence hubs. The incidents could increase perceived risk for investors and tech companies planning large-scale data center projects in the region, though experts say such infrastructure expansion is still likely to continue despite the security challenges.
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INTERNATIONAL

Mexico prepares for 40-hour work week by 2030

Mexico has approved a bill to reduce the standard workweek from 48 to 40 hours in a move that will benefit nearly 13.4 million workers. The bill passed with overwhelming support in the Chamber of Deputies, with 469 votes in favor. However, critics worry that the reduction may lead to increased overtime hours. The reform will be implemented gradually, trimming two hours each year until 2030. President Claudia Sheinbaum introduced the proposal, emphasizing that "productivity is not measured by exhaustion." The bill now requires approval from two-thirds of state legislatures to take effect.

BMW to trial humanoid robots at German factory

BMW plans to introduce two AI-powered humanoid robots at its Leipzig factory this summer. Developed by Swedish company Hexagon, the 1.65-meter tall robots can autonomously move components in a fully digitized environment. Milan Nedeljkovic, BMW's incoming chairman, said: "The robot is intelligent enough to generate its own decisions." Despite concerns about job losses due to automation, BMW's head of digitization, Michael Stroebel, said: "It is not planned currently to reduce the workforce by replacing workers with new robots." The robot's battery life is about three hours, but Hexagon said the robots can replace their own battery in about 30 seconds using a charging station.

Singapore to train 100,000 'AI-bilingual' workers by 2029

Singapore plans to train 100,000 workers in AI skills by 2029 under the National AI Impact Programme (NAIIP). The initiative aims to enhance the capabilities of professionals in fields including accountancy and law, thus enabling them to integrate AI into their work processes. Minister for Digital Development and Information Josephine Teo said: "Not all of us can be AI engineers. But we can be ‘bilingual' in AI and our own areas of expertise." The program will also support 10,000 enterprises in adopting AI technologies, with a focus on improving productivity and innovation across various sectors.

Nestlé lays off 400 employees in South Africa

Nestlé is issuing retrenchment notices to over 400 employees in South Africa as part of a global restructuring plan focusing on four core divisions. Initial severance discussions have begun for at least 100 workers. The restructuring, led by new CEO Philipp Navratil, aims to cut about 16,000 jobs globally, accounting for approximately 6% of the company's workforce.
 
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