Business
U.S. job growth outperforms expectations as hiring resurges and unemployment drops
An unexpectedly large surge in new job creation and a down-tick in unemployment last month was good news for the economy, for the Federal Reserve and for Democratic politicians because it suggested policymakers have managed, thus far, to curb inflation without triggering a recession.
The addition of 254,000 jobs in September, reported by the government Friday, was well above the average 203,000 monthly gains over the past year. It blew past analysts’ expectations and indicated that the economy has more legs than previously thought, despite a worrisome slowdown in hiring over the past summer.
At the same time, the unemployment rate dropped to 4.1% from 4.2% in August.
Employers in an array of industries added to their payrolls, led by eating and drinking businesses, healthcare and government. Construction payrolls rose over the month, as did retail. Manufacturing and transportation and warehousing jobs, however, declined slightly, and there was little change in business services and information, which includes the struggling film industry.
“The report doesn’t single-handedly change the landscape for the economic outlook, but it does provide reassurance that there’s still plenty of life in the jobs market,” said Jim Baird, chief investment officer with Plante Moran Financial Advisors, a major accounting firm based in the Detroit area.
The strong hiring in September, plus a pickup in wage gains to a 4% annual pace — notably faster than the rate of inflation — comes on the heels of the Federal Reserve’s big, half-point reduction in interest rates last month, the first rate cut since 2020. With inflation now seemingly under control, the central bank is focusing on supporting the job market.
After Friday’s report, most analysts say they expect a quarter-point cut at its next meeting in early November. Stocks initially jumped on news of the latest employment numbers, then dropped and rose again in a volatile day on Wall Street.
The monthly jobs report is viewed as the single most important economic indicator. The October report will be released Nov. 1, a few days before the Fed meeting and the national election in which the economy has been a top concern for voters.
The September employment statistics for states won’t be released until later in the month. California’s latest jobless figure was 5.3% in August, the second highest in the nation, although job growth in recent months has been keeping pace with the national rate.
At this late point in the political calendar, new economic reports aren’t likely to sway a lot of voters, who typically have locked up their candidate of choice by the summer. Polls suggest that the lingering effects of inflation have cast a shadow over the economy in the minds of many voters, but the labor market has rarely been as resilient — and that goes for most key battleground states.
Through August, Arizona, Georgia, North Carolina and Pennsylvania all have lower unemployment rates than the country’s 4.2% in August, according to the U.S. Bureau of Labor Statistics. And their pace of job growth has been as strong if not stronger than the national average.
Wisconsin’s jobless rate was just 2.9% in August, and while Nevada has the highest unemployment in the land, at 5.5%, the state is adding jobs at double the speed of the country. Meanwhile, Michigan’s unemployment and job-growth rates are slightly worse off than for the U.S. as a whole.
“If people are looking at the labor market, I would think they would have to be pretty happy,” said Dean Baker, an economist at the Center for Economic and Policy Research in Washington, who like other analysts were worried after the jobless rate rose to 4.3% in July from 3.7% at the start of the year. But after Friday’s report, he said, “This is a really low unemployment rate by historical standards, and most of the swing states are doing even better.”
Baker said the job market has been bolstered by federal spending and investments, as well as larger inflows of immigrants, who, while stirring fresh controversies, also have filled many jobs.
The future may be a bit cloudy, with the conflict in the Middle East and uncertainties hanging over the election Nov. 5. Also, the October job numbers could be affected by the devastating effects of Hurricane Helene and the Boeing strike if that persists, even as the suspension of the large-scale picketing by dockworkers removed another potential hit to the employment numbers.
Cory Stahle, economist for Indeed Hiring Lab, said next month’s report may not be so reassuring, reflecting the fluctuation in the data month to month. But “the labor market isn’t on the brink of collapse,” he said, although adding that Fed interest rate cuts may be needed to sustain the momentum.
“Another half-point cut in the interest rate in November is now out of the question; a quarter-point cut is likely,” said Sung Won Sohn, professor of economics and finance at Loyola Marymount University. “The central bank will proceed with a series of small cuts in the interest rate.”
Business
A new delivery bot is coming to L.A., built stronger to survive in these streets
The rolling robots that deliver groceries and hot meals across Los Angeles are getting an upgrade.
Coco Robotics, a UCLA-born startup that’s deployed more than 1,000 bots across the country, unveiled its next-generation machines on Thursday.
The new robots are bigger, tougher and better equipped for autonomy than their predecessors. The company will use them to expand into new markets and increase its presence in Los Angeles, where it makes deliveries through a partnership with DoorDash.
Dubbed Coco 2, the next-gen bots have upgraded cameras and front-facing lidar, a laser-based sensor used in self-driving cars. They will use hardware built by Nvidia, the Santa Clara-based artificial intelligence chip giant.
Coco co-founder and chief executive Zach Rash said Coco 2 will be able to make deliveries even in conditions unsafe for human drivers. The robot is fully submersible in case of flooding and is compatible with special snow tires.
Zach Rash, co-founder and CEO of Coco, opens the top of the new Coco 2 (Next-Gen) at the Coco Robotics headquarters in Venice.
(Kayla Bartkowski/Los Angeles Times)
Early this month, a cute Coco was recorded struggling through flooded roads in L.A.
“She’s doing her best!” said the person recording the video. “She is doing her best, you guys.”
Instagram followers cheered the bot on, with one posting, “Go coco, go,” and others calling for someone to help the robot.
“We want it to have a lot more reliability in the most extreme conditions where it’s either unsafe or uncomfortable for human drivers to be on the road,” Rash said. “Those are the exact times where everyone wants to order.”
The company will ramp up mass production of Coco 2 this summer, Rash said, aiming to produce 1,000 bots each month.
The design is sleek and simple, with a pink-and-white ombré paint job, the company’s name printed in lowercase, and a keypad for loading and unloading the cargo area. The robots have four wheels and a bigger internal compartment for carrying food and goods .
Many of the bots will be used for expansion into new markets across Europe and Asia, but they will also hit the streets in Los Angeles and operate alongside the older Coco bots.
Coco has about 300 bots in Los Angeles already, serving customers from Santa Monica and Venice to Westwood, Mid-City, West Hollywood, Hollywood, Echo Park, Silver Lake, downtown, Koreatown and the USC area.
The new Coco 2 (Next-Gen) drives along the sidewalk at the Coco Robotics headquarters in Venice.
(Kayla Bartkowski/Los Angeles Times)
The company is in discussion with officials in Culver City, Long Beach and Pasadena about bringing autonomous delivery to those communities.
There’s also been demand for the bots in Studio City, Burbank and the San Fernando Valley, according to Rash.
“A lot of the markets that we go into have been telling us they can’t hire enough people to do the deliveries and to continue to grow at the pace that customers want,” Rash said. “There’s quite a lot of area in Los Angeles that we can still cover.”
The bots already operate in Chicago, Miami and Helsinki, Finland. Last month, they arrived in Jersey City, N.J.
Late last year, Coco announced a partnership with DashMart, DoorDash’s delivery-only online store. The partnership allows Coco bots to deliver fresh groceries, electronics and household essentials as well as hot prepared meals.
With the release of Coco 2, the company is eyeing faster deliveries using bike lanes and road shoulders as opposed to just sidewalks, in cities where it’s safe to do so. Coco 2 can adapt more quickly to new environments and physical obstacles, the company said.
Zach Rash, co-founder and CEO of Coco.
(Kayla Bartkowski/Los Angeles Times)
Coco 2 is designed to operate autonomously, but there will still be human oversight in case the robot runs into trouble, Rash said. Damaged sidewalks or unexpected construction can stop a bot in its tracks.
The need for human supervision has created a new field of jobs for Angelenos.
Though there have been reports of pedestrians bullying the robots by knocking them over or blocking their path, Rash said the community response has been overall positive. The bots are meant to inspire affection.
“One of the design principles on the color and the name and a lot of the branding was to feel warm and friendly to people,” Rash said.
Coco plans to add thousands of bots to its fleet this year. The delivery service got its start as a dorm room project in 2020, when Rash was a student at UCLA. He co-founded the company with fellow student Brad Squicciarini.
The Santa Monica-based company has completed more than 500,000 zero-emission deliveries and its bots have collectively traveled around 1 million miles.
Coco chooses neighborhoods to deploy its bots based on density, prioritizing areas with restaurants clustered together and short delivery distances as well as places where parking is difficult.
The robots can relieve congestion by taking cars and motorbikes off the roads. Rash said there is so much demand for delivery services that the company’s bots are not taking jobs from human drivers.
Instead, Coco can fill gaps in the delivery market while saving merchants money and improving the safety of city streets.
“This vehicle is inherently a lot safer for communities than a car,” Rash said. “We believe our vehicles can operate the highest quality of service and we can do it at the lowest price point.”
Business
Trump orders federal agencies to stop using Anthropic’s AI after clash with Pentagon
President Trump on Friday directed federal agencies to stop using technology from San Francisco artificial intelligence company Anthropic, escalating a high-profile clash between the AI startup and the Pentagon over safety.
In a Friday post on the social media site Truth Social, Trump described the company as “radical left” and “woke.”
“We don’t need it, we don’t want it, and will not do business with them again!” Trump said.
The president’s harsh words mark a major escalation in the ongoing battle between some in the Trump administration and several technology companies over the use of artificial intelligence in defense tech.
Anthropic has been sparring with the Pentagon, which had threatened to end its $200-million contract with the company on Friday if it didn’t loosen restrictions on its AI model so it could be used for more military purposes. Anthropic had been asking for more guarantees that its tech wouldn’t be used for surveillance of Americans or autonomous weapons.
The tussle could hobble Anthropic’s business with the government. The Trump administration said the company was added to a sweeping national security blacklist, ordering federal agencies to immediately discontinue use of its products and barring any government contractors from maintaining ties with it.
Defense Secretary Pete Hegseth, who met with Anthropic’s Chief Executive Dario Amodei this week, criticized the tech company after Trump’s Truth Social post.
“Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon,” he wrote Friday on social media site X.
Anthropic didn’t immediately respond to a request for comment.
Anthropic announced a two-year agreement with the Department of Defense in July to “prototype frontier AI capabilities that advance U.S. national security.”
The company has an AI chatbot called Claude, but it also built a custom AI system for U.S. national security customers.
On Thursday, Amodei signaled the company wouldn’t cave to the Department of Defense’s demands to loosen safety restrictions on its AI models.
The government has emphasized in negotiations that it wants to use Anthropic’s technology only for legal purposes, and the safeguards Anthropic wants are already covered by the law.
Still, Amodei was worried about Washington’s commitment.
“We have never raised objections to particular military operations nor attempted to limit use of our technology in an ad hoc manner,” he said in a blog post. “However, in a narrow set of cases, we believe AI can undermine, rather than defend, democratic values.”
Tech workers have backed Anthropic’s stance.
Unions and worker groups representing 700,000 employees at Amazon, Google and Microsoft said this week in a joint statement that they’re urging their employers to reject these demands as well if they have additional contracts with the Pentagon.
“Our employers are already complicit in providing their technologies to power mass atrocities and war crimes; capitulating to the Pentagon’s intimidation will only further implicate our labor in violence and repression,” the statement said.
Anthropic’s standoff with the U.S. government could benefit its competitors, such as Elon Musk’s xAI or OpenAI.
Sam Altman, chief executive of OpenAI, the company behind ChatGPT and one of Anthropic’s biggest competitors, told CNBC in an interview that he trusts Anthropic.
“I think they really do care about safety, and I’ve been happy that they’ve been supporting our war fighters,” he said. “I’m not sure where this is going to go.”
Anthropic has distinguished itself from its rivals by touting its concern about AI safety.
The company, valued at roughly $380 billion, is legally required to balance making money with advancing the company’s public benefit of “responsible development and maintenance of advanced AI for the long-term benefit of humanity.”
Developers, businesses, government agencies and other organizations use Anthropic’s tools. Its chatbot can generate code, write text and perform other tasks. Anthropic also offers an AI assistant for consumers and makes money from paid subscriptions as well as contracts. Unlike OpenAI, which is testing ads in ChatGPT, Anthropic has pledged not to show ads in its chatbot Claude.
The company has roughly 2,000 employees and has revenue equivalent to about $14 billion a year.
Business
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