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Effort to cut federal workforce takes aim at key US jobs engine

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Effort to cut federal workforce takes aim at key US jobs engine

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Elon Musk’s plan to slash the federal workforce under Donald Trump is poised to upend one of the strongest engines of the US labour market: the government.

Government and healthcare jobs have been the biggest source of employment in the past year, particularly for knowledge workers, data shows. US job recruiters, economists and labour leaders fear the plan to cut the workforce could crimp the number of good available jobs at a time of declining private-sector employment, compounding already-stiff competition for white-collar jobs.

“We’re getting closer to where we are not creating as many jobs as we need to keep up with the population,” said Cory Stahle, an economist at jobs site Indeed. With fewer federal openings, “we start entering a territory where [the labour market] starts to get a little bit sketchier”.

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Excluding the Postal Service, the federal government created 2,100 jobs in October. Total payrolls grew by only 12,000 workers that month, according to the labour department, as private sector payrolls were damped by strikes and Hurricanes Helene and Milton. 

The federal government employs just 2 per cent of the US workforce but has been among the largest creators of white-collar jobs in recent years. The jobs of its 3mn civilian employees range from law enforcement officers at airports and prisons to medical providers to postal workers.

The popularity of government work has exploded as workers, particularly younger ones, seek out stability after headline-grabbing lay-offs in tech and on Wall Street. Handshake, a US jobs site targeting college students and recent graduates, reported applications to federal government jobs grew 55 per cent last year. Others are after robust healthcare and retirement benefits, said Andy Challenger of outplacement firm Challenger, Gray and Christmas. 

That all stands to change after Trump enters the White House next month. Reducing the size of the federal government was a cornerstone of the president-elect’s campaign, and he has appointed Musk and Vivek Ramaswamy to lead an initiative called the Department of Government Efficiency to cut costs. The two pledged to encourage voluntary departures by eliminating remote work options and offering early retirement packages, they wrote in The Wall Street Journal last month. 

“Under President Trump’s leadership, the Government Efficiency effort led by Vivek and Elon will target waste and fraud throughout our massive federal bureaucracy,” Brian Hughes, a spokesperson for the Trump transition team, said in an emailed statement.

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The US payroll costs taxpayers $271bn annually, or roughly 4 per cent of the $6.3tn in federal spending during fiscal year 2022, according to the Congressional Budget Office. The government spends far more on contractors at $750bn, a total union leaders say will rise after mass lay-offs.

Musk and Ramaswamy said they plan “mass headcount reductions” in order to eliminate more than $500bn in annual spending. Musk has already begun targeting climate-related jobs, calling out ordinary employees he hopes to fire by name in posts on X. All appeared to be in specialised fields such as clean energy and emerging markets. One, Missy Cummings, had criticised Tesla during her tenure at the National Highway Traffic Safety Administration.

Though experts are sceptical that Doge can spur mass lay-offs, job seekers are already moving towards the private sector.

Lesley Mitler, a career coach who specialises in college students, said: “If people come to me and say they want to work in Washington, DC, I would say, ‘Why don’t we see how things evolve, before making that kind of commitment?’”

Current government employees, however, are gearing up for a fight, said Jacqueline Simon, policy director of the American Federation of Government Employees, the largest union of federal government workers, who described the mood in her union as “defiant”.

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Government staff are aware that US-wide job openings have fallen 11 per cent, or by 1mn, over the past year and are “scared”, said Randy Erwin, the president of the National Federation of Federal Employees.

Asked where her members might look for jobs should Trump’s plans succeed, Simon said: “I have no idea.”

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Tulsa Massacre Was a ‘Coordinated, Military-Style Attack,’ Federal Report Says

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Tulsa Massacre Was a ‘Coordinated, Military-Style Attack,’ Federal Report Says

The Tulsa Race Massacre of 1921, in which a prosperous Black neighborhood in Oklahoma was destroyed and up to 300 people were killed, was not committed by an uncontrolled mob but was the result of “a coordinated, military-style attack” by white citizens, the Justice Department said in a report released Friday.

The report, stemming from an investigation announced in September, is the first time that the federal government has given an official, comprehensive account of the events of May 31 and June 1, 1921, in the Tulsa neighborhood of Greenwood. Although it formally concluded that, more than a century later, no person alive could be prosecuted, it underscored the brutality of the atrocities committed.

“The Tulsa Race Massacre stands out as a civil rights crime unique in its magnitude, barbarity, racist hostility and its utter annihilation of a thriving Black community,” Kristen Clarke, assistant attorney general for civil rights, said in a statement. “In 1921, white Tulsans murdered hundreds of residents of Greenwood, burned their homes and churches, looted their belongings and locked the survivors in internment camps.”

No one today could be held criminally responsible, she said, “but the historical reckoning for the massacre continues.”

The report’s legal findings noted that if contemporary civil rights laws were in effect in 1921, federal prosecutors could have pursued hate crime charges against both public officials and private citizens.

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Though considered one of the worst episodes of racial terror in U.S. history, the massacre was relatively unknown for decades: City officials buried the story, and few survivors talked about the massacre.

The Justice Department began its investigation under the Emmett Till Unsolved Civil Rights Crime Act, which allows the agency to examine such crimes resulting in death that occurred before 1980. Investigators spoke with survivors and their descendants, looked at firsthand accounts and examined an informal review by the Justice Department’s Bureau of Investigation, the precursor to the F.B.I. In that 1921 report, the agency asserted that the riot was not the result of “racial feeling,” and suggested that Black men were responsible for the massacre.

The new 123-page report corrects the record, while detailing the scale of destruction and its aftermath. The massacre began with an unfounded accusation. A young Black man, Dick Rowland, was being held in custody by local authorities after being accused of assaulting a young white woman.

According to the report, after a local newspaper sensationalized the story, an angry crowd gathered at the courthouse demanding that Mr. Rowland be lynched. The local sheriff asked Black men from Greenwood, including some who had recently returned from military service, to come to the courthouse to try to prevent the lynching. Other reports suggest the Black neighbors offered to help but were turned away by the sheriff.

The white mob viewed attempts to protect Mr. Rowland as “an unacceptable challenge to the social order,” the report said. The crowd grew and soon there was a confrontation. Hundreds of residents (some of whom had been drinking) were deputized by the Tulsa Police. Law enforcement officers helped organize these special deputies who, along with other residents, eventually descended on Greenwood, a neighborhood whose success inspired the name Black Wall Street.

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The report described the initial attack as “opportunistic,” but by daybreak on June 1, “a whistle blew, and the violence and arsons that had been chaotic became systematic.” According to the report, up to 10,000 white Tulsans participated in the attack, burning or looting 35 city blocks. It was so “systematic and coordinated that it transcended mere mob violence,” the report said.

In the aftermath, the survivors were left to rebuild their lives with little or no help from the city. The massacre’s impact, historians say, is still felt generations later.

In the years since the attack, survivors and their descendants and community activists have fought for justice. Most recently, a lawsuit seeking reparations filed on behalf of the last two known centenarian survivors was dismissed by Oklahoma justices in June. In recent years, Tulsa has excavated sections of a city cemetery in search of the graves of massacre victims. And in 2024, the city created a commission to study the harms of the atrocity and recommend solutions. The results are expected in the coming weeks.

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The strange world of the Euro-Gulf 

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The strange world of the Euro-Gulf 

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Waiting for the Tube, I see a poster for an upmarket gym chain. Locations? “City of London. High Street Kensington. Dubai.” What a shame to choose a setting that is so disfigured with bad taste and clueless expats. Still, the City and Dubai branches must be first-rate.  

Soon after, I am in Doha, and again the Euro-Gulf linkage is inescapable. The emir of Qatar is back from a state visit to Britain, where the hosts were angling for a trade deal. Swiss-headquartered Fifa has just given the World Cup hosting rights to Saudi Arabia. Even in skyscraper-free Muscat, where alleys that might have been rationalised elsewhere in the Gulf twist freely behind the corniche, three restaurants in my hotel are outposts of Mayfair brands. 

What a shame the word “Eurabia” is taken. And by such cranks. (It is a far-right term for a supposed plot to Islamise Europe.) Because we are going to need a word for this relationship. The Arabian peninsula has what Europe lacks: space, natural wealth and the resulting budget surpluses to invest in things. For its part, Europe has “soft” assets that Gulf states must acquire, host or emulate to carve out a post-oil role in the world. This isn’t the Gulf’s deepest external connection. Not while 38 per cent of people in the UAE and a quarter in Qatar are Indian. But it might be the most symbiotic, if I understand that word correctly. 

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True, the US has a defence presence in all six Gulf Cooperation Council states. This includes the Saudi footprint that Osama bin Laden wasn’t super-stoked about. But everyday contact? America is a 15-hour flight away. Its soft assets are either harder to buy or less coveted. Its citizens have little fiscal incentive to live in tax havens, as Uncle Sam charges them at least some of the difference.  

In the 1970s, when Opec profits gushed through London, Anthony Burgess wrote a dystopia in which grand hotels became “al-Klaridges” and “al-Dorchester”. What a mental jolt it was for even the worldliest Europeans to see — we mustn’t pussyfoot around this — non-white people with more money than them. Still, they could condescend to the Gulf as being no place to live. Half a century on, their grandchildren would call that copium. In fact, their grandchildren might literally live there for economic opportunities. (Al-Dorado?) As a banker friend explains it, the time zones allow you to sleep late, trade the European markets, then dine late, so it is the young ones who do a Gulf stint, not the burnouts who are my age. 

For how long, though? It is the sheer unlikelihood of this tryst, between a universal rights culture and monarchical absolutism, between a mostly secular continent and the home peninsula of an ancient faith, that distinguishes it from anything I can think of. A relationship can be both necessary and untenable. It wouldn’t take much — some intra-GCC violence, say, which seemed close in 2017 — for Europe’s exposure to the Gulf to age as badly as its former openness to Russia. If Abu Dhabi-owned Manchester City are found to have committed financial chicanery, a chunk of Premier League history will be tainted. Because it is “just” sport, I sense people are underprepared for the backlash. 

And it is parochial to assume that the relationship could only ever break down on one end. It is the Gulf side that has to make the awkwardest cultural adjustments. Because Europeans associate 1979 with Iran and perhaps with Margaret Thatcher, they sometimes pass over the seizure of the Grand Mosque in Mecca by zealots who thought the House of Saud had grown soft on western habits. Governments in the region assuredly don’t forget.  

How far a place can liberalise without tripping a cultural wire occupies (and is answered differently in) each state, or emirate. Everyone is very nice to “Mister Janan” in his Doha hotel. But the metal scanners that must be passed on each re-entry to the building stand as a reminder of the stakes here. I wonder if Europe and the Gulf throw so much into their liaison out of a niggling doubt that it can last. 

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Email Janan at janan.ganesh@ft.com

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Fox News headed for trial, again, over 2020 election fraud claims

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Fox News headed for trial, again, over 2020 election fraud claims

Fox News appears headed for trial over false election fraud claims made after the 2020 election, after a New York state appellate court chose not to dismiss a lawsuit brought by voting tech company Smartmatic.

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Spencer Platt/Getty Images/Getty Images North America

Fox News appears to be headed once more to court over the lies involving election fraud it aired about the 2020 presidential race. This time, it’s over the false claims that election tech company Smartmatic sabotaged the re-election of then-President Donald Trump.

In April 2023, on the eve of a trial in Delaware in which Fox founder Rupert Murdoch was set to testify, the network and its parent corporation agreed to pay $787.5 million to settle a defamation suit filed by Dominion Voting Systems.

A flood of revelations from the pre-trial process of discovery yielded damning internal communications. The judge found that network figures from junior producers to primetime hosts, network executives, Murdoch and his son Lachlan knew that Joe Biden had won the election fairly. Yet, they allowed guests to spread lies that Trump had been cheated of victory to win back Trump viewers. Some hosts amplified and even embraced the claims.

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Now, an appellate court ruling in New York state is allowing Smartmatic’s parallel, $2.7 billion suit to press ahead. The same ruling also dismissed some counts against the network’s parent company, Fox Corp.

Pro-Trump Fox hosts including Maria Bartiromo and the late Lou Dobbs invited guests making unsubstantiated and wild claims about Smartmatic on the air, and at times appeared to endorse those allegations themselves.

Fox forced Dobbs off the air just a day after Smartmatic filed its suit in February 2021. Two weeks later, Fox News and Fox Business Network ran an awkward segment with a voting tech expert, Edward Perez, to present viewers with a rebuttal to those outlandish claims. Newsmax, a right-wing channel in competition with Fox for viewers who supported Trump, did much the same.

“Today, the New York Supreme Court rebuffed Fox Corporation’s latest attempt to escape responsibility for the defamation campaign it orchestrated against Smartmatic following the 2020 election,” Smartmatic’s lead attorney, Erik Connolly, said in a statement. “Fox Corporation attempted, and failed, to have this case dismissed, and it must now answer for its actions at trial. Smartmatic is seeking several billion in damages for the defamation campaign that Fox News and Fox Corporation are responsible for executing. We look forward to presenting our evidence at trial.”

Unlike Dominion, whose voting machines were used in two dozen states, Smartmatic says its technology was used only in Los Angeles County in 2020. Fox has sharply questioned the value of Smartmatic and the contracts it says were jeopardized and lost.

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“We will be ready to defend this case surrounding extremely newsworthy events when it goes to trial,” a network spokesperson said in a statement. “As a report prepared by our financial expert shows, Smartmatic’s damages claims are implausible, disconnected from reality, and on their face intended to chill First Amendment freedoms.”

In the Dominion case, Fox also relied on arguments that its shows and hosts were simply relaying inherently newsworthy allegations from inherently newsworthy people — the then-president and his allies. The presiding judge in Delaware, Eric M. Davis, rejected that argument; he found that Fox’s executives, stars, and shows had broadcast false claims and defamed Dominion in doing so.

Fox has said that the New York case offers a new venue, with slightly different implications, although Davis applied New York defamation law in his Delaware proceedings.

Fox settled, as it has in many other cases, before opening arguments of the trial with Dominion. It maintains it will fight the allegations Smartmatic is making in court.

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