The Sluggish Labor Market Is Increasing Productivity. That Could Pave The Way To A Hotter Labor Market.

Though we’re in the middle of a data drought right now, with the federal shutdown cutting off the flow of government economic data, there’s been plenty of evidence in recent months that the labor market has slowed to a crawl. The last four monthly jobs reports were fairly muted, job openings have been trending lower and job recruiters are seeing a pretty mixed picture, as companies hold off on making new investments. But there is a force at work in this sluggish labor economy that could provide the juice it needs to pick up the pace again: labor productivity.

Hiring is a lot weaker than it was back when companies were scrambling to staff up after the pandemic. That means people are staying in their jobs longer. “And as people have gotten used to their new roles that they got during the pandemic high-turnover period, they’ve been more productive in their jobs,” said George Pearkes, macro strategist at Bespoke Investment Group. He said businesses have made themselves more productive since the pandemic, too. Eventually strong productivity growth can send a signal to businesses that they could rake in even more profits if they hire more workers.

Read more at Marketplace

The 2026 Economic Drivers For Manufacturing

It’s been a wild year with tariffs and other trade impacts on manufacturers in 2025. But what’s in store for 2026? Jennifer Clement, client relationship leader of investment advising firm Clifton, Larson, Allen, offered insights and strategic guidance on trends the company is currently seeing in the marketplace at the Women in Manufacturing Summit on Oct. 14. Clement discussed some of the economic drivers for next year that will provide manufacturers with opportunities to stay competitive.

• Cashing in manufacturing tax coupons - Up until the One Big Beautiful Bill Act became law on July 4 manufacturers have been living in a world of uncertainty, including on the tax front, Clement said. Now there are opportunities,
• Tariffs: ‘Shock to the business’ - While the Supreme Court will hear oral arguments on whether to uphold President Donald Trump’s tariff powers on Nov. 5, it doesn’t mean the duties will disappear, Clement said.
• Using saved tax money to invest in technology - The new tax law could offer opportunities to invest in AI-assisted technology that can help a manufacturer’s business.

Read more at Manufacturing Dive

Gold And Related Stocks Are Falling For A Second Day. The Metal Is Off 8% From High

Gold prices fell for a second day on Wednesday, as investors took profits after a weeks-long rally. The precious metal sold off sharply Tuesday, losing 5.74% to close at $4,109.10 in its worst performance since 2013. The two-day selloff comes after gold futures hit a intraday record of $4,398 per ounce on Monday. There is no macroeconomic or geopolitical event driving the pullback in gold prices this week, according to Swiss bank UBS.

“If we look at adjustments to non-commercial positioning, we believe the decline was largely technical,” UBS analysts led by Wayne Gordon told clients Wednesday. “With slowing price momentum and rising option volatility, more speculative investors decided to take profit.” Gold prices are still up more than 50% this year and nearly 5% this month. The fundamentals that have driven the metal to record highs this year will likely persist, according to UBS. These include inflation, tariffs, threats to Federal Reserve independence and polical instability in the U.S.

Read more at CNBC

Middle East

• Trump Threatens Hamas Amid Push On Next Gaza Truce Steps – Reuters
• UN's Top Court Says Israel Obliged To Allow UN Aid Into Gaza - BBC
• State Department Rebukes International Court Of Justice Opinion Demanding Israel Faciliate UNRWA Gaza Aid - Politico
• Trump Officials Ratchet Up Pressure on Israel and Hamas - WSJ
• Iran Risks Severe Economic Downturn, Unrest As Renewed UN Sanctions Bite - Reuters
• Syria Launches Operation Against Foreign Jihadists In Push To Capture French Fighters – France 24
• Trump Is Expected To Host Saudi Crown Prince Mohammed Bin Salman Next Month, AP Sources Say - AP
• Interactive Map- Israel’s Operation In Gaza – Institute For The Study Of War
• Map – Conflicts in the Middle East – Live Universal Awareness Map

Ukraine

• Ukraine Launches Storm Shadow Missile Strike On Russia While Kremlin Pounds Kyiv – Politico
• Russia Was Smug About Trump-Putin Talks. Now They’re On Hold, Moscow’s Anxious -CNBC
• Trump Meets NATO’s Rutte Amid Canceled Putin Meeting: 'It Didn't Feel Right To Me' - Fox
• Trump Administration Sanctions Big Russian Oil Companies - CNBC
• Russia Bombs Kindergarten In Kharkiv, Ukraine Says - Politico
• Russia Holds Nuclear Drills After Delay To Putin-Trump Summit - Reuters
• EU Approves 19th Package Of Russian Sanctions Including LNG Ban - Reuters
• Ukraine's 'Sea Baby' Drones Are Growing Up With Longer Range, Bigger Payload - Reuters
• Interactive Map: Assessed Control Of Terrain In Ukraine – Institute For The Study Of War
• Map – Tracking Russia’s Invasion Of Ukraine – Live Universal Awareness Map

Other Headlines

• New PM Takaichi Assembles Rivals and Allies for a Reform and Realism Cabinet – Japan Forward
• Imprisoned Journalists In Belarus And Georgia Win Top EU Human Rights Award - Politico
• How A ‘Dark Fleet’ Of Tankers Helped A Mexican Cartel Build A Fuel-Smuggling Empire - Reuters
• The U.S. Is Trying to Drive a Wedge Between Argentina and China - WSJ
• AUKUS Should Move Faster, Trump Says – Nikkei Asia
• North Korea Has Fired A Ballistic Missile Toward The East, Seoul Says - BBC
• Super-Warming Methane Gas Is Being Tackled Too Slowly, UN Says Ahead Of COP30 - Reuters
• Lithium: Can Bolivia’s New President Revive The Country's 'White Gold’ Dream? – France 24
• Parliament Stalls EU’s First Effort To Simplify Rules For Business – Politico

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Pressure Grows As Shutdown Enters Fourth Week

Lawmakers in both parties are grappling with growing pressure amid a stalemate that has brought Washington to a near standstill. The government shutdown entered its fourth week on Wednesday, becoming the second longest in U.S. history after surpassing another from the mid-1990s. Congress is still a long way from coming up with a solution to end the shutdown, with no major breakthroughs 22 days in. But pressure is growing on both parties to find a possible exit ramp. The Hill’s Al Weaver reports that Republican leadership has planned specific votes this week to pay military members and essential federal workers, which they hope will drive more of a wedge among Democrats tempted to vote in favor.

Efforts so far haven’t been successful, as the Democratic caucus has stayed mostly unified in rejecting the House-passed continuing resolution (CR), except for the three who have voted for the bill from the beginning. While Senate Majority Leader John Thune (R-S.D.) has said he’s committed to maintaining the 60-vote threshold to advance legislation, chatter has increased about the party going “nuclear” to overrule the Democrats and reopen the government, The Hill’s Alexander Bolton reports. Meanwhile, House Republicans are considering a new stopgap measure that could run into January or beyond. As each day passes, Nov. 21, the date through which the House-passed CR would continue funding the government, gets closer and closer.

Read more at The Hill

Moderate Assembly Dems Push Hochul To Delay All-Electric Buildings Mandate

Several Assembly Democrats plan to petition Gov. Kathy Hochul to roll back the statewide mandate to build all-electric buildings starting next year. The All-Electric Buildings Act was tucked in the state budget in 2023, and bans new gas hookups in new buildings under seven stories starting Jan. 1. The mandate would apply to all other buildings constructed after Jan. 1, 2029.

Moderate Democrats in the lower house, especially upstate, are signing on to a letter asking Hochul to pause implementing the law after recent New York Independent System Operator reports show the state's electric grid has significant reliability shortfalls over the next decade. At least nine Assembly Democrats agreed to sign the letter in the first day Conrad circulated it, including Assemblymembers John McDonald III, William Magnarelli, Carrie Woerner, Judy Griffin, Paula Kay, Sam Berger and Simcha Eichenstein. NYISO reports show the electric grid could have reliability issues in New York City, Long Island and the Hudson Valley within five years.

Read more at NY State of Politics

The Average Cost of a Family Health Insurance Plan Is Now $27,000

The cost of health insurance rose steeply for a third year in a row in 2025, reaching just under $27,000 for a family plan, according to an annual survey from the nonprofit KFF, which provides the broadest picture of U.S. employer health coverage. That is a 6% increase from the year before, and builds on two prior years of 7% gains. The cost is rising faster than inflation, and economists and business leaders said it could bite into employment and wage growth.

“If healthcare costs go up faster than the economy in general, that means there’s less money left over to go to wages,” said Gary Claxton, a senior vice president at KFF. The KFF survey, which includes more than 1,860 employers and was completed earlier this year, offers a detailed snapshot of workplace insurance. Nearly half the U.S. population gets health coverage through a job.

Read more at The WSJ

• John E. Sununu Jumps Into New Hampshire Senate Race – Politico
• Democratic Donors Sit on Sidelines as Party Schism Persists - WSJ
• Senate’s 12th Attempt To End Shutdown Fails – The Hill
• Flight Delays Hit Major US Airports Amid FAA Staffing Woes – USA Today
• Trump Office Of Special Counsel Nominee Withdraws From Hearing After Report Of Racist Texts - WSJ
• Trump Backs US Nuclear Submarine Deal For Australia – Defense News
• Trump Administration to Release $3B in Farm Aid Frozen by Shutdown - WSJ
• US Strikes Eighth Alleged Drug-Carrying Boat, This Time In The Pacific Ocean - AP
• White House's Entire East Wing To Be Demolished 'Within Days,' Officials Say – NBC

More Than 100 Cases of Measles Reported in Utah and Arizona

The nation's second-largest measles outbreak this year is spreading beyond its epicenter along the Utah-Arizona border. Most of the known measles cases — 123 as of Wednesday — are linked to a tight-knit community of twin towns: Colorado City, in Mohave County, Arizona, and Hildale, which is in Washington County, Utah. Within the past few weeks, there have been three cases in nearby, larger towns, such as Hurricane and St. George, Utah. Those exposures occurred in hospital and urgent care settings, according to the Southwest Utah Public Health Department.

Many of the clusters started in schools, said David Heaton, public information officer for the health department. "But now we have community spread," he said. All three affected counties have vaccination rates far lower than the 95% experts say is needed for herd immunity. According to an NBC News data investigation, the vaccination rate in Iron County is 82.4%. In Washington County, it’s 79.2%. It’s even lower in Mohave County, Arizona, at 78.4%.

Read more at NBC News

Upcoming Council Programs

Events

2025 Annual Luncheon - November 21, 2025 -11:00 AM Expo, 12:00 Lunch. The Grandview, Poughkeepsie.

Networks

HR Sub Council Meeting Topic TBD, January 14, 2026, 8:15 - 11:00. Selux Corporation, Highland.

Insight Exchange On Demand Webinars

• See previous episodes here!

Webinars and Seminars

Check back soon

Training

NEXT WEEK - FILLING FAST Introduction to Lean with Simulation - This full-day Lean Foundations course, led by Vin Buonomo from RIT CQAS, is designed as a starting point for those interested in Lean certification—including Yellow Belt and Green Belt. October 28, 2025 - Location TBD.

2 Seats Left Lean Six Sigma: Yellow Belt - Yellow Belt is an approach to process improvement that merges the complementary concepts and tools from both Six Sigma and Lean approaches. 3 Full days - November 12, 13 & 14 - DCC Fishkill.

Trade Wars

• US Chemical Firms Set For Another Weak Quarter On China-Led Supply Glut, Tariffs – Reuters
• Japan’s Exports And Imports Grow In September Despite Trump’s Tariffs - AP
• Trump Says He Expects To Reach Deal With China On Trade, Soybeans, Possibly Nuclear Arms - Reuters
• U.S. Consumers' Tariff-Driven Inflation Perceptions – Morning Consult
• Tariffs Are Starting To Bite Consumers And Businesses, Economists Say - CBS
• Airbus Opens Second Jet Assembly Line In China As It Targets Production Growth - Reuters
• The Beef Over Trump’s Beef Plan – US News

IBM Tops Third-Quarter Estimates And Lifts Guidance

IBM reported third-quarter results that topped Wall Street estimates and lifted its guidance, citing ongoing artificial intelligence tailwinds. Still, the stock dropped 5% in extended trading. Earnings per share were $2.65 adjusted vs. $2.45 expected and revenue increased 9% from about $15 billion in the year-ago period, IBM said. The company reported net income of $1.74 billion, or $1.84 per share, after recording a loss of $330 million, or 36 cents per share, a year earlier. The results from last year included the impact of a $2.7 billion pension settlement charge.

“Clients globally continue to leverage our technology and domain expertise to drive productivity in their operations and deliver real business value with AI,” CEO Arvind Krishna said in release. IBM upped its revenue guidance and said it now expects “more than” 5% revenue growth, up from “at least” 5%. Free cash flow for the year is expected to hit $14 billion, up from a $13.5 billion estimate last quarter. Infrastructure, which includes its mainframe computers built in Poughkeepsie, jumped 17% to $3.6 billion.

 Read more at CNBC

Tesla Reports Revenue Growth After Two Down Quarters.

Tesla reported a 12% increase in third quarter revenue on Wednesday following two straight periods of declines. However, earnings missed analyst estimates, pushing the stock down almost 5% in extended trading. Earnings per sharwere 50 cents adjusted vs. 54 cents estimated and total revenue climbed from $25.18 billion a year earlier. Automotive revenue increased 6% to $21.2 billion from $20 billion in the year-ago period, Tesla said.

Net income fell 37% to $1.37 billion, or 39 cents per share, from $2.17 billion, or 62 cents per share a year earlier. The profit drop reflected lower EV prices and a 50% increase in operating expenses, which the company said was in part due to artificial intelligence and “other R&D projects.” The company also said it’s now building out “first generation production lines” for the company’s humanoid Optimus robots. Musk said Tesla expects to show its Optimus V3 in the first quarter.

Read more at CNBC

Amazon Unveils AI Smart Glasses For Its Delivery Drivers

Amazon announced on Wednesday that it’s developing AI-powered smart glasses for its delivery drivers. The idea behind the glasses is to give delivery drivers a hands-free experience that reduces the need to keep looking between their phone, the package they’re delivering, and their surroundings. The e-commerce giant says the glasses will allow delivery drivers to scan packages, follow turn-by-turn walking directions, and capture proof of delivery, all without using their phones. The glasses use AI-powered sensing capabilities and computer vision alongside cameras to create a display that includes things like hazards and delivery tasks.

Also on Wednesday, Amazon unveiled a new robotic arm called “Blue Jay” that can work alongside warehouse employees to pick items off shelves and sort them. Additionally, the tech giant announced a new AI tool called Eluna that will help provide operational insights at Amazon warehouses.

Read more at Tech Crunch

3M Raises Annual Profit Forecast Amid Margin Expansion Drive

3M on Tuesday raised annual profit forecast for the second time this year, bolstered by a shift toward higher-margin products and tighter cost controls, sending its shares up nearly 4%. The Scotch-tape and Post-it maker expects 2025 operating margin to grow 1.8 to 2 percentage points, compared with its previous projection for a rise of 1.5 to 2 percentage points. 3M has leaned on product innovation under CEO Bill Brown, who took the helm in 2024, when the company was grappling with slowing sales and the fallout from several lawsuits. The Saint Paul, Minnesota-based company launched 70 new products in the third quarter. It expects to reach 250 product launches by the end of this year, exceeding its initial target of 215.

3M posted third-quarter adjusted profit of $2.19 per share, beating analysts' estimate of $2.08, according to data compiled by LSEG. Total quarterly adjusted revenue came in at $6.32 billion, while analysts estimated $6.25 billion. 3M expects 2025 adjusted profit to be between $7.95 and $8.05 per share, compared with its previous forecast of $7.75 to $8 per share.

Read more at Reuters

Caterpillar invests in U.S. manufacturing, workforce training

During an event at its large engine plant in Lafayette, Ind., Caterpillar Inc. said Indiana will be among the first states to receive funding from its five-year, $100 million workforce pledge, and has committed up to $5 million to training and upskilling efforts across the state. The pledge aims to grow interest in advanced manufacturing careers and prepare U.S workers for the future, unlocking quality jobs and industry-wide innovation.

The company recently announced a $725 million capital expansion at its Lafayette facility – reportedly one of the largest single manufacturing investments in the company’s global history – to increase engine production and help meet the nation’s growing power needs. The expansion is expected to add at least 100 jobs in Lafayette. “The demand for energy is increasing like never before,” said Jason Kaiser, Caterpillar Energy & Transportation Group President. “Many of the engines manufactured here in Lafayette will support power generation customers by providing reliable power – keeping operations running during outages and helping meet the growing energy needs driven by AI, data centers and other critical infrastructure across America and around the world.”

Read more at Construction Briefing

Developing Rare-Earth-Free Electric Motors

Niron Magnetics has announced a collaboration with Stellantis to develop a new generation of electric motor designs for automotive use using magnets free of rare-earth elements. The project builds on Stellantis Ventures’ 2023 investment in Niron Magnetics and includes $2.7 million in additional support from the US Department of Energy’s Advanced Materials and Manufacturing Technologies Office (AMMTO). The initiative aligns with the Department’s goals to strengthen domestic manufacturing and reduce reliance on foreign critical materials.

Conventional permanent magnets depend on rare earth elements, most of which are sourced from China. Niron Magnetics’ Iron Nitride technology offers an alternative made from iron and nitrogen, which are abundant materials available in the United States and globally. The joint project, titled “Variable Flux Field Intensifying Motors Using Iron Nitride Permanent Magnets,” will focus on optimizing motor architecture across vehicle platforms to improve performance and efficiency using Niron’s rare-earth-free magnets.

Read more at EV Engineering

Space Warfare Emerges As Nations Invest In ASAT Tech

Anti-satellite technologies (ASATs) are becoming the new military "must-have" for spacefaring nations — like China, Russia, India, as well as the United States. U.S. military leaders have openly stated that the nation needs space-based weaponry "to deter a space conflict and to be successful if we end up in such a fight." The Chief of Space Operations for the U.S. Space Force stated earlier this year that the service must " harness the benefits of technological innovation and emerging capabilities if we're going to be able to out-compete our competitors."

But what exactly is at stake in orbit, what's up there to strike, and why? Those are issues being thrashed out as countries appear to be investing in capabilities that can take out or disrupt other spacecraft.

Read more at Executive Biz

Quote of the Day

“Success is no accident. It is hard work, perseverance, learning, studying, sacrifice and most of all, love of what you are doing or learning to do.”

 Pele - Brazilian Footbal legend who was born on this day in 1940.

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