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America registered disappointing job growth for the second month in a row.

By the numbers: Just 194,000 jobs were created in September, a significantly slower pace than the 366,000 number a month earlier. Economists had been hoping and expecting to reach at least 500,000 this time around.

The good news, such as it was, came with the unemployment rate, which dropped sharply to just 4.8%, from 5.2% in August. Unemployment for Black Americans dropped even faster, to 7.9% from 8.8%.

The big picture: Private-sector employment growth was OK, if not great, in September. The big disappointment came in the public sector, especially teachers. Women dominate the teaching profession, and they've been leaving the job market.

Local government school districts lost 144,000 jobs in September, with a further 17,000 job losses at the state level.

Those numbers are seasonally adjusted — schools simply didn't add the number of teachers at the beginning of the academic year that they normally do.

Bars and restaurants saw essentially no growth in September, repeating their weak showing from August. They had been driving the recovery this year, with an average gain of 197,000 jobs per month from January through July.

What they're saying: "The recovery has stalled," tweeted economist Justin Wolfers. "We're missing about 8 million jobs, and at this rate, we're not bringing them back any time soon."

President Biden later on Friday said the pandemic and fears over the Delta variant contributed to the disappointing jobs report.

"Today's report is based on a survey that was taken during the week of September 13. Not today, September the 13th — when COVID cases were averaging more than 150,000 per day," Biden said. "Since then, we've seen the daily cases fall by more than one-third and they're continuing to trend down, and we're continuing to make progress."

Biden also touted the unemployment rate saying, "today's report has the unemployment rate down to 4.8%, a significant improvement from when I took office and a sign that our recovery is moving forward even in the face of a COVID pandemic."

What's next: After two successive disappointing months of job growth, economists are now pinning hopes on the October job report to show what the economy is capable of as the Delta variant recedes.

But the low unemployment rate can be taken as a warning that not a lot of Americans are looking for work. It's hard to add net jobs if no one particularly wants to come out of unemployment to fill them.

Editor's note: This story has been updated with additional details throughout. 

U.S. economy adds just 194,000 jobs in September

Worker pushing carts with a now hiring sign

A Winn-Dixie supermarket in  Florida. Photo by Joe Raedle/Getty Images

Jobs report

Stock market

Jobs

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

The pace of strikes slowed when the pandemic hit. Now there are signs picket lines are bouncing back amid fresh worker angst.

What's new: Production has been halted at Kellogg cereal plants across America after 1,400 workers walked off the job in a bid for better benefits (and worries about job outsourcing).

The last time a cereal workers strike hit the company was nearly 50 years ago.

Also this week: Hollywood production workers signed off to authorize a strike over better labor conditions and higher pay.

There's no strike now, but the move — the first in its 128-year history — means they can call one at any time.

Data: Bureau of Labor Statistics; Note: 2021 data year-to-date, includes Kellogg strike; Chart: Thomas Oide/Axios

The big picture: Workers are harder to come by, possibly giving employees more leverage for demands. That could be one reason why strikes are well below pre-pandemic levels.

Still, employers aren't bending all the way, causing enough of a stalemate for strikes in the first place.

What to watch: From Hollywood studios to factories, the work stoppages could threaten America’s recovery — already plagued by a shortage of stuff. 

"My guess is Kellogg will try to bring in outside workers to start some of our lines up to keep food in their network," says Daniel Osborn, a maintenance planner at Kellogg's Omaha, Nebraska, plant, adding that might be difficult for the company. (That worker shortage again.)

Osborn is the local head of the national union behind the weekslong strike at Nabisco factoriesthat ended last month.

Workers strike back

Production has been halted at Kellogg cereal plants across America, the first strike at the company in 50 years.

Labor strikes

A government watchdog will review whether the financial market trading activity of two top economic officials at the Fed violated the central bank’s rules or the law, a Fed spokesperson said on Monday.

Why it matters: It’s the latest fallout from a rare public scandal at one of the world’s most influential economic bodies — one that's led to rapid resignations, raised questions about conflicts of interest and drawn ire from lawmakers.

Catch up quick: Financial disclosures showed two regional Fed presidents owned — and in one case, actively traded — assets that could have benefited from the monetary policy they helped shape as the economy was on the brink of collapse.

The officials last week resigned within mere hours of one another  — a development virtually unheard of at the Fed.

Speaking to reporters, Fed chairman Jerome Powell said last month its current rules around what Fed officials can trade or own are inadequate —  and an internal review of said rules (and changes to them) would come. 

He went a step further during a congressional hearing last week, hinting the problem may not just be the rules, but that the trades might not have been compliant with those rules after all.

What’s new: “As part of our comprehensive review, we began discussions last week with the Office of Inspector General for the Federal Reserve Board (OIG) to initiate an independent review of whether trading activity by certain senior officials was in compliance with both the relevant ethics rules and the law.  We welcome this review and will accept and take appropriate actions based on its findings,” a Fed spokesperson said on Monday.

The backdrop: Sen. Elizabeth Warren (D-Mass.) today said the SEC should look into whether those officials’ trades amounted to  insider trading.

She also took a direct shot at Powell — who’s renomination by President Biden still hangs in the balance: "It is not clear why … Powell did not stop these activities.”

Warren said last week she would not support Powell's renomination.

Fed says government watchdog will probe trades by top officials

It's the latest fallout from the trading controversy that's rocked the Fed.

Photographer: Samuel Corum/Bloomberg via Getty Images

Federal Reserve

Chicago

Axios Chicago

If you want to get Chicago workers back in the office for a big meeting, you'd do well to schedule it on Thursday and lay out a spread of free food, according to data gathered by a leading workplace management software company. 

Why it matters: Many employers in Chicago and across the nation had their autumn return-to-work plans scuttled by the Delta variant. Now, companies that still want to schedule important in-person meetings have to get workers on board first. 

Driving the news: Robin, a company that makes workspace logistics software, released its most current national data on who is returning to the office, who isn't and where. 

The data is based on insights gleaned from Robin's software, which helps employers implement a desk booking system at their offices. 

Zoom in: The percentage of Chicago employees returning to the office rose just 3% in August after a 90% bump in July. 

The number of desk bookings decreased by about 18% in August compared to a 168% rise in July.

Thursday is the preferred day to work in the office for Chicagoans, followed closely by Tuesday and Wednesday.

The big city picture: Many Chicago workers — like those in other big cities — have moved further from the office and don't want to make the daily commute on public transportation or pay big parking fees, Robin co-founder Zach Dunn tells Axios. 

What turns workers off, according to Robin intel:        

Requiring workers to return on certain days without a good reason.

Requiring all workers to wear masks when alone at their desks.

Knowing when other key co-workers will be present.

The promise of free breakfast and/or lunch.

What's next: Dunn expects more companies to defer full returns to next year, but to still hold occasional in-person meetings. And he warns employers to remain flexible.  

When employers tighten rules on the days "people have to be in the office, they see an exodus of employees," he says. "Because guess what, you're competing against people who don't have those rules."

Free food, vaccine mandates key to wooing back office workers

New data shows the dos and don'ts of getting workers back to the office.

Illustration of a woman from behind looking at a red carpet leading to an empty office desk

Finish Line

Axios Finish Line

Job postings requiring employees to get vaccinated before applying are on the rise, and more and more firms say they'll terminate existing employees who refuse to get the jab.

Why it matters: Corporate America is playing a key role in upping the U.S. vaccination rate. It'll get harder for those who are hesitant to avoid the shot as vaccination status becomes increasingly linked to livelihood.

By the numbers: The share of job postings per million on Indeed that require vaccination spiked 242% in the last month, from about 1,700 to over 4,000. And — while it's clearly a very small amount of total postings — it keeps rising. 

For example, 2% of personal care and home health jobs mandate vaccination, and 1.5% of child care jobs do the same. These are among the sectors with the highest share of postings requiring vaccination.

In Arizona, 1.3% of postings required vaccinations — more than any other state.

"Some companies may also be requiring vaccination but not listing it in the job description," Indeed economist AnnElizabeth Konkel says. "Given that vaccination has become political, some employers may ponder whether or not to write it into the job description." 

The share of job searches on Indeed in which applicants are explicitly looking for roles that don't require vaccination is up 20-fold in the last month. The bulk of those searches are for health care jobs that aren't mandating vaccines, Konkel says.

What's happening: The government is stepping in too. Expect more companies to mention vaccines in job posts as the forthcoming government rules on vaccines at work become more clear.

The Biden administration has directed the Department of Labor’s Occupational Safety and Health Administration (OSHA) to develop a temporary rule that'll require companies with 100 or more employees to either require vaccination or implement weekly testing. Such a rule would affect 80 million U.S. workers.

For some jobs, testing won't be enough. The government is set to put vaccination requirements in place for all health care workers. On top of that, most federal employees and millions of government contractors already have been told they must get the vaccine.

A federal appeals court ruled Monday that New York City can require all its teachers to be vaccinated — their deadline for the first dose is Friday.

State of play: Many companies are raising questions, like who will pay for testing and how OSHA will determine which businesses must comply. And several Republican lawmakers are encouraging businesses to push back or openly rebel.

But many other firms already have — and are continuing to — move forward with vaccine mandates.

The list includes Google, Facebook, Netflix, Walt Disney Co., Morgan Stanley, Lyft and The Washington Post.

Per a new Gartner survey of legal and human resources officers at companies across the country, 46% of firms plan to issue vaccine mandates, while 36% say they're still unsure and 17% say they won't issue mandates.

15% of companies said they'd fire workers who refuse to get the shot.

What's next: New vaccination rules may add to the "great resignation." Some 69% of firms fear increased turnover with vaccine mandates, per Gartner.

The rise of hiring (and firing) based on vaccination status

It'll get harder for those who are hesitant to avoid the shot as vaccination status becomes increasingly linked to livelihood.

Illustration of a briefcase with a vaccination record card in it.

COVID-19 vaccines

Coronavirus

The U.S. faces a range of health care flashpoints — unaffordable drugs, opioids, vaping — as we debate whether to adopt universal care. For now, the Affordable Care Act is the law of the land, but Republicans want to issue it a final death blow.

Health

A North Carolina-based hospital system has fired roughly 175 unvaccinated employees for failing to comply with its vaccine mandate.

Why it matters: It's one of the largest-ever cases of mass terminations spurred by a vaccine requirement. Over 99% of its 35,000 employees have adhered to the mandate, according to Novant director of media and influencer relations Megan Rivers.

How it happened: Novant Health announced its vaccine policy for employees in July. The organization operates 15 hospitals and 800 clinics.

Last week, Novant suspended 375 workers without pay for not following the mandate. 

They were given five days to get at least a first shot, which nearly 200 did by Friday, and will have until Oct. 15 to get fully vaccinated.

Our thought bubble, via Axios Charlotte's Michael Graff: The fact that they got to 99% is a testament to how suspensions really do make change.

Slowly, a lot of the employees’ pushback stopped when the employers showed they were serious about suspending people and taking away their paychecks. 

What they're saying: "Less than 1% opted not to comply. We're proud of the 35,000+ team members who chose to participate in the vaccine mandate program with patient safety at forefront," Rivers tweeted.

The big picture: The courts have upheld private employers' right to issue vaccine mandates. 

North Carolina hospital system fires 175 unvaccinated workers

Over 99% of its 35,000 employees have adhered to the mandate, the organization said.

Photo of a masked health care worker holding up a COVID vaccine needle

Photo: Jason Armond/Los Angeles Times via Getty Images

Coronavirus vaccines

Hard workplace reality: The heightened pandemic-era surveillance that workers thought was temporary is showing signs of longevity.

Why it matters: The pandemic popularized surveillance and data collection as America's workforce rapidly pivoted to remote work.

It ranged from temperature-reading infrared cameras to detect fevers among warehouse employees to keystroke-tracking programs to monitor remote workers’ activity.

The big picture: 60% of large employers now track and monitor their workers and that's expected to grow, Gartner human resources research head Brian Kropp told the Washington Post.

Attorney Kerrie Krutchik shared her experience with the Post:

Krutchik's work laptop included facial recognition software that required her to do a three-angle sign-in each time she looked away too long.

“It’s just this constant, unnecessary, nerve-racking stress: You’re trying to concentrate and in the back of your mind you know you’re on camera the entire time,” she said. “While you’re reviewing a document, you don’t know who is reviewing you.”

The bottom line: Employers have broad rights to keep an eye on workers, with the limits often governed by what employees will tolerate, Axios chief tech correspondent Ina Fried notes.

Pandemic-era surveillance of remote workers may be here to stay

“While you’re reviewing a document, you don’t know who is reviewing you.”

Illustration showing computer keys forming a face.

Surveillance

The role of charting the future of work and workplaces is no longer just the purview of the chief executive officer or the chief technology officer — it's also front-and-center for the chief people officer.

Why it matters: The human resources department is vaulting in importance as companies grapple with return-to-work plans and the war for talent is won on corporate values and culture.

What's happening: Not only are listings for HR jobs spiking — up 52.5% from their pre-pandemic baseline, per data from the jobs site Indeed — but the scope of the work that HR departments must do has widened enormously in the age of COVID-19.

As HR has gone from a back-office job to a C-suite job, more firms are hiring chief people officers to work side by side with CEOs to navigate the challenges of the future.

Modern issues that newly muscular HR departments must grapple with include mask and vaccination policies, managing remote teams, therapy pets in the office, gender designations for restrooms, removing college degree requirements for hiring and much more.

All this new clout and respect is reflected in evolving nomenclature: HR (a term that has sometimes induced eye-rolls) is increasingly known as the more prestigious-sounding "People Team."  

Flashback: Before the pandemic, the favorable hiring environment meant that "HR wasn’t able to demonstrate that what it was doing mattered," says Peter Cappelli, a professor and director of Wharton's Center for Human Resources.

"For a long time, it was on the chopping block," he says. "The people at the top had no idea about the harmful effects of bad management and the cost of turnover."

Mass layoffs pushed many people in service or hospitality to rethink their careers. And people in plenty of other fields had more than a year to think about what they really wanted to do with their lives.

Now upward of 40% of workers are considering quitting their jobs in what's now being routinely called the "great resignation." And many of them don't just want to change jobs — they want to change industries.

On top of that, the rise of remote and distributed teams is making engagement at work even more important. Workers say company culture is as important to them as getting promoted.

All that's pushing firms to beef up HR departments for recruitment and hiring, and bring in chief people officers to strategize on how to set a positive and inclusive company culture.

And the increased pressure and demands are leading to burnout and churn among HR professionals themselves.

The bottom line: After a long period in the shadows, HR is gaining power. "What’s going on right now is that the top people can finally see the problem," says Cappelli.

The golden age of HR

human-resources-chief-people-officer-golden-age

Illustration of one large golden rubber ducky, and two smaller yellow rubber duckies following behind it.

Future of work

Data: YouGov on behalf of LinkedIn; Chart: Axios Visuals

Half of U.S. Latinos feel their workplace does not have a nurturing environment for diverse professionals, even as a majority think their office leaders do consider inclusion to be important, per a poll carried out by YouGov and LinkedIn.

By the numbers: The survey found that 37% of Latino professionals said they are considering leaving their jobs because of lack of recognition, of opportunities and of leaders with shared experiences who can offer mentorship.

That number is greater than the 1 in 4 American workers who are planning to look for other work post-pandemic, in what’s been dubbed the Great Resignation.

Bottom line: The survey shows dissatisfaction at work and feeling constrained in their careers even after a number of big and small corporations made promises to diversify and work towards equity in the wake of racial justice protests. 

51% of those surveyed pointed out that their company talked a lot about making office culture changes, but those did not come to pass.

Of note: 60% of polled Latinos feel they have been overlooked for career advancements because of elements from their ethnic and racial background. 

That number increases to nearly 70% amongst darker-skinned Latinos and Afro-Latinos, a majority of whom feel lighter-skinned Latinos and white Hispanics can advance further.

Go deeper: Government Accountability Office hits media for lacking Latinos

Survey: Most Latino professionals feel overlooked for promotions

Nearly 70% of darker Latinos said their skin color prevented their job advancement.

Hispanic and Latino Americans

Closer

Axios Closer

Companies are narrowing the blue- and white-collar experience as they're forced to adapt to a worker-led market.

Driving the news: Basic office tools and concepts like corporate communications and schedule flexibility are migrating to frontline operations through investments in technology.

Why it matters: Employee retention is a high priority for companies with lower-paid frontline workers who have plenty of options right now. 

High turnover and supply chain breaks limit the growth or recovery of goods and services sectors. 

State of play: Nearly 4 million people quit their jobs in July, close to the all-time high set in April.

Quit rates were highest in nondurable manufacturing (food, clothing, cosmetics, etc.) at 3%, retail (4.4%), and accommodation and food services (5.4%). 

What’s changing: To deepen retention rates, companies are trying to create a sense of care for frontline workers by sending more messages about diversity and inclusion, allowing workers to split long shifts, or encouraging work from different locations to make time for family and child care, WorkJam CEO Steven Kramer tells Axios.

WorkJam makes software for workers in high quit-rate sectors as well as the companies that employ them. It has added about 1.5 million essential workers in North America, Europe and Asia to its platforms since the start of 2020, a 75% increase, Kramer says.

The details: WorkJam and similar companies provide digital training, messaging and schedules for employees to look for, sign up, split or swap their hours.

Compare that to bulletin board posts in a break room or multiple calls to managers, Kramer says. "That digital relationship between employee and manager and the company has never existed before." 

Trends to watch: Setting overtime as optional and creating an environment where employees aren’t frowned upon for having to move their schedules, Becky Frankiewicz, president at ManpowerGroup North America, tells Axios.

The bottom line: While the pandemic is accelerating many of these improvements and other social metrics, it’s also prompted companies to plan for automation, a worrying outcome for the same group of vulnerable workers. 

Corporations turn focus to retraining frontline workers

Employee retention is a high priority for companies with lower-paid frontline workers.

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