The U.S. economy added 261,000 jobs in October and the unemployment rate rose to 3.7%, according to the latest monthly employment snapshot from the Bureau of Labor Statistics released Friday morning.

While the 261,000 jobs added for October is the the smallest monthly jobs gain for the U.S. economy since December 2020, it is also a solid gain by historical standards. The economy added an average of 183,000 jobs a month over the course of the decade before the pandemic.

The U.S. labor market has remained very strong despite growing fears by many economists that a recession looms, and efforts by the Federal Reserve to tamp down the pace of economic growth as a way of combating higher prices.

Fed Chair Jerome Powell has warned that the economy may need to shed jobs if price pressures are to be brought under control, but so far the Fed’s string of large interest rate hikes has not stopped employers from seeking more help. The continued strength in the labor market could leave the door open for the Fed to continue to hike rates at its upcoming meetings.

The Unemployment Insurance Advisory Council (UIAC) is welcoming suggestions to improve Wisconsin’s Unemployment Insurance (UI) program during two public hearings and a public comment period.

The Council represents employee and employer interests and submits recommendations for improving unemployment law to the Legislature.

The Council will hold two public hearings on Nov. 17, 2022. The hearings will be virtual, conducted by teleconference and WebEx web conferencing technology. The first hearing is from 2 to 4 p.m.; the second is from 5 to 6 p.m.

“The public hearing is a great opportunity for members of the public to provide input on the laws that govern Wisconsin’s UI system,” Department of Workforce Development (DWD) Secretary-designee Amy Pechacek said. “I encourage interested individuals to attend one of the two public hearings scheduled for Nov. 17 or submit written comments through the avenues outlined below.”

Advanced registration is required. Find the details at: https://dwd.wisconsin.gov/uibola/uiac/pubhearings/2022.htm

If unable to attend a hearing, the council is taking public comments on suggested changes to the state’s UI laws from November 9 to 18, 2022. The comments will help inform the council’s legislative agenda during the following year.

Submit written comments and suggestions to:

• Email: UILawChange@dwd.wisconsin.gov
  (Note: Emails will only be accepted from Nov. 9 to 18, 2022)
• Mail to: Janell Knutson, Chair
  Unemployment Insurance Advisory Council
  P.O. Box 8942
  Madison, WI 53708

The Consumer Financial Protection Bureau on Wednesday said it issued guidance to end two particular bank fees that can catch customers by surprise — and are “likely unfair and unlawful,” according to the agency’s release. The move is the latest in the CFPB’s ongoing initiative to scrutinize junk fees, which generally are fees that are unexpected or excessive.

The new guidance first targets surprise overdraft fees, which can be as much as $36 each, the CFPB said. These fees can happen when a customer had enough money in their account to cover a debit charge at the time the bank authorized it, but then is charged an overdraft fee due to the timing of other charges hitting their account.

The second fee the CFPB addresses can happen when a customer deposits a check that ends up bouncing — despite the overdraft being due to the check writer’s insufficient funds. The charge is typically $10 to $19 per instance, according to the CFPB.

Already this year, many banks have been eliminating overdraft and non-sufficient funds fees or making their policies more consumer-friendly. The CFPB estimates those changes translate into $3 billion in savings for consumers.

Beginning November 1 and running through January 15, consumers may select plans at HealthCare.gov for 2023. To be sure coverage is in place at the first of the year, shoppers must enroll or renew their insurance by December 15. For those who sign up for coverage between December 16 and January 15, coverage will not kick in until February.

Anyone who misses the January 15 deadline may only sign up for a plan during a Special Enrollment Period, offered in the instance of losing other coverage, moving, getting married or having a baby.

Whether an individual is looking for coverage for the first time or considering a switch, there are a number of changes this year to be aware of when weighing options.

A seriously low U.S. and global diesel supply is likely to drive up fuel costs and worsen inflation, raising concerns as the cold weather months approach.

Analysts say that a confluence of factors, long bubbling beneath the surface, are now coming to a head as colder temperatures bring more seasonal demand for diesel, a fuel that powers trucks and buses and is also used in heating.

“This is the start of heating oil season. This is when demand really starts picking up as we enter the winter months,” said Debnil Chowdhury, the head of North and Latin American refining and marketing research at S&P Global Commodity Insights.

A confluence of factors has also strained diesel markets.  These factors include reduced refining capacity due to the pandemic, increased demand amid COVID-19 recovery and Chinese export quotas, Chowdhury said.

“Diesel demand came back a lot faster than other products. There are refineries that shut down across the globe so the ability to supply was hindered,” he said. “And then finally, China, which is a larger diesel exporter … wasn’t able to export.”

In a recent interview with Bloomberg, National Economic Council Director Brian Deese called the inventory levels “unacceptably low” and called on industry to build up its inventory.

Energy Secretary Jennifer Granholm called on industry to cut back its exports of “refined products” which include diesel and gasoline, in recent weeks, arguing that the supply is needed stateside.

About two million people in Wisconsin and three other Midwestern states could have better access to specialty health care.

That’s if a merger between Marshfield Clinic Health System and Essentia Health moves forward. Marshfield Clinic operates hospitals and clinics throughout Wisconsin. This month, it announced a potential merger with the Minnesota-based Essentia Health. Both signed a written agreement on October 12 to explore the logistics of forming an integrated health system.

The health systems have complementary geographies and capabilities, officials said. If combined, the merged health system would include 3,500 providers, 150 care sites and 25 hospitals. Around 1,600 of those providers would come from Marshfield Clinic, along with 11 hospitals and 60 clinics. Essentia, meanwhile, has 70 clinics and 14 hospitals.

While the Marshfield Clinic and Essentia merger discussion is the most recent hospital merger dialogue in Wisconsin, it likely won’t be the last.

The hospital industry has consolidated substantially over the last two decades, and at a more rapid pace since 2010, according to a 2020 study by Harvard Medical School scientists.

The Harvard scientists examined patient outcomes from almost 250 hospital mergers between 2009 and 2013. They found that hospital mergers lead to higher prices for commercially insured patients and the quality of care at consolidated hospitals has either gotten worse or stayed the same.

Real gross domestic product (GDP) increased at an annual rate of 2.6 percent in the third quarter of 2022, according to the “advance” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP decreased 0.6 percent.

The increase in real GDP reflected increases in exports, consumer spending, nonresidential fixed investment, federal government spending, and state and local government spending, that were partly offset by decreases in residential fixed investment and private inventory investment. Imports, which are a subtraction in the calculation of GDP, decreased.

The increase in exports reflected increases in both goods and services. Within exports of goods, the leading contributors to the increase were industrial supplies and materials (notably petroleum and products as well as other nondurable goods), and nonautomotive capital goods. Within exports of services, the increase was led by travel and “other” business services (mainly financial services). Within consumer spending, an increase in services (led by health care and “other” services) was partly offset by a decrease in goods (led by motor vehicles and parts as well as food and beverages).

Within nonresidential fixed investment, increases in equipment and intellectual property products were partly offset by a decrease in structures. The increase in federal government spending was led by defense spending. The increase in state and local government spending primarily reflected an increase in compensation of state and local government employees.

Within residential fixed investment, the leading contributors to the decrease were new single-family construction and brokers’ commissions. The decrease in private inventory investment primarily reflected a decrease in retail trade (led by “other” retailers). Within imports, a decrease in imports of goods (notably consumer goods) was partly offset by an increase in imports of services (mainly travel).

Real GDP turned up in the third quarter, increasing 2.6 percent after decreasing 0.6 percent in the second quarter. The upturn primarily reflected a smaller decrease in private inventory investment, an acceleration in nonresidential fixed investment, and an upturn in federal government spending that were partly offset by a larger decrease in residential fixed investment and a deceleration in consumer spending. Imports turned down.

The Internal Revenue Service (IRS) has released Notice 2022-55, containing cost-of-living adjustments for 2023 that affect amounts employees can contribute to 401(k) plans and individual retirement accounts (IRAs).

2023 Increases

The employee contribution limit for 401(k) plans in 2023 has increased to $22,500, up from $20,500 for 2022. Other key limit increases include the following:

• The employee contribution limit for IRAs is increased to $6,500, up from $6,000.
• The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan is increased to $7,500, up from $6,500.
• The employee contribution limit for SIMPLE IRAs and SIMPLE 401(k) plans is increased to $15,500, up from $14,000.
• The limits used to define a “highly compensated employee” and a “key employee” are increased to $150,000 (up from $135,000) and $215,000 (up from $200,000), respectively.
• The annual limit for defined contribution plans (for example, 401(k) plans, profit-sharing plans and money purchase plans) is increased to $66,000, up from $61,000.
• The annual compensation limit (applicable to many retirement plans) is increased to $330,000, up from $305,000.

The income ranges for determining eligibility to make deductible contributions to traditional IRAs, contribute to Roth IRAs and claim the Saver’s Credit (also known as the Retirement Savings Contributions Credit) also increased for 2023. The IRS’ news release contains more details.

A supply chain specialist warns the United States will be “in a world of hurt” if semiconductor production coming out of Taiwan is disrupted.

Rosemary Coates, founder and executive director of the Reshoring Institute, discussed logistics trends yesterday during a webinar hosted by the Metropolitan Milwaukee Association of Commerce’s World Trade Association.

She said new U.S. semiconductor plants are being built in Ohio, New York, Texas, California and Arizona in order to “reduce the vulnerability that we have right now” in the global semiconductor industry. According to most estimates, Taiwan currently produces more than 90 percent of the world’s most advanced semiconductor chips, which are used in a wide variety of technology including computers, vehicles and military applications.

“Because of the geopolitics with China, Taiwan is in a vulnerable position,” Coates said. “So it’s really important we rebuild the semiconductor industry in the U.S.”

Coates noted the percentage of semiconductors produced in the United States has fallen from 40 percent to just 12 percent in the past 20 years. And she added most of the chips produced domestically are “fairly low level” in terms of sophistication.

She also stressed the importance of the CHIPS and Science Act, which aims to boost the U.S. semiconductor industry. She argued “that is incredibly important” as the country is “vulnerable not only in our everyday consumer products, but also in high-tech defense products.”

This vulnerability has been exacerbated by the conflict in Ukraine, as the eastern European country produces two-thirds of the world’s supply of neon gas, which is required for semiconductor production.

Along with the efforts to boost this industry, Coates also discussed the shift toward “reshoring” of manufacturing more broadly, both in the United States and around the world. She explained the “mood of America has changed” around importing for a variety of factors, including pandemic supply chain disruptions, instability in the global economy and the impacts of tariffs.

She said the 301 tariffs on Chinese imports to the United States were meant to help support domestic production by raising the cost of these imports. But Coates explained the tariffs largely just resulted in higher costs being paid by U.S. consumers.

Student test scores saw precipitous declines in math and reading over the past two years, according to new data from the National Assessment of Educational Progress, commonly known as the nation’s report card.

The 2022 scores, which measure student proficiency in reading and math, is the first edition of the nation’s report to be released since COVID-19 pandemic policies forced schools nationwide to close their doors, in some cases up to a full year.

The biggest score declines were in math, which the National Center for Education Statistics said in a press release were the biggest decline ever recorded. For fourth graders, math scores declined by five points to 236 from their 2019 number of 241, while eighth grade scores plummeted a whopping eight points from 282 to 274.

In reading, both fourth and eighth graders saw three point declines from 2019. Fourth grade scores fell from 220 to 217 and eighth grade scores from 263 to 260.

“The results show the profound toll on student learning during the pandemic, as the size and scope of the declines are the largest ever in mathematics,” Peggy Carr, the commissioner of the National Center of Education Statistics, said in a press release. “The results also underscore the importance of instruction and the role of schools in both students’ academic growth and their overall wellbeing. It’s clear we all need to come together—policymakers and community leaders at every level—as partners in helping our educators, children, and families succeed.”

Not a single state saw an increase in scores for either subject, although a handful of states saw no change in their results. In all, 51 out of 53 states or territories saw declines in eighth grade math scores, with Delaware, West Virginia, and Oklahoma registering the largest declines. Only Utah and the Department of Defense Education Activity —which provides public schooling to military families—did not register declines in eighth grade math scores.

For eighth grade reading, scores declined in 33 states and territories, remained even with previous results in 18, and rose within DOD schools by two points. Maine, Delaware, Oklahoma, and Oregon saw the largest declines in reading scores, with scores dropping by eight points in Maine, and seven points in the other three states.

The abysmal state of student proficiency in math and reading was largely expected due to the prolonged school closures brought on by pandemic policies. But Monday’s results are the most comprehensive measurement of student achievement since the beginning of the pandemic more than two years ago.