THE HOT STORY

OpenAI pays $3.2m in U.S. probe over hiring foreign workers

OpenAI and Statsig, a subsidiary which makes product development software, will pay $3.2m to settle U.S. government claims that they favored foreign workers with temporary employment visas and discriminated against U.S. job applicants when hiring. The Justice Department said various steps were taken to discourage U.S. workers from applying for positions, including requiring applicants to mail paper applications instead of submitting electronic ones, advertising jobs on the radio late at night, and ⁠not posting the openings on an external website. Assistant Attorney General Harmeet Dhillon said that "this substantial settlement ensures that OpenAI redresses harm and changes its recruitment practices so that U.S. ⁠workers receive a fair opportunity for highly sought-after technology positions."

Reuters

LEGAL

Amazon accused of ‘grueling working conditions' and wage suppression

New Jersey has filed an antitrust lawsuit against Amazon, alleging that the company unlawfully uses its dominant position in the market for delivery drivers to suppress competition, keep wages artificially low, and impose poor working conditions on contractors in its Delivery Service Partner (DSP) network. In the lawsuit filed in U.S. District Court, New Jersey charged that Amazon “orchestrated a deliberate and unlawful scheme” to harm thousands who were forced to work under “grueling and often inhumane conditions” through its creation and control over DSPs. Amazon has rejected the allegations, saying its delivery partners are independent businesses that control their own hiring and operations.

CNBC

NJ.com

HIRING

Job openings ease in June as hiring strengthens and layoffs stay low

U.S. job openings fell by 178,000 to 7.36m in June, slightly below economists’ expectations, reflecting softer labor demand led by a 147,000 decline in healthcare and social assistance vacancies, according to the Labor Department’s JOLTS report. The job openings rate edged down to 4.4% from 4.5%, although economists continue to characterize the labor market as stable rather than weakening. Despite fewer open positions, hiring increased by 96,000 to 5.35m, lifting the hires rate to 3.4%, while layoffs and discharges remained largely unchanged at 1.77m, with the layoffs rate holding at 1.1%. The combination of modest hiring gains and low layoffs reinforces the view that the labor market remains in a "slow-hire, slow-fire" environment, allowing the Federal Reserve to keep its focus on inflation ahead of Friday’s July employment report, where economists expect payroll growth of 80,000 and the unemployment rate to remain at 4.2%.

Bloomberg

Boston Herald

Reuters

TRAINING & DEVELOPMENT

AI skills 'more valuable than MBA'

According to a PwC survey of over 1,000 financial service executives, 86% believe that AI skills training is more beneficial than an MBA for new hires. The survey highlights that 91% of executives are increasing compensation for employees with AI skills, and 58% are willing to pay a premium for expertise in this area. The findings raise questions about the return on investment for an MBA, which can exceed $250,000. The Graduate Management Admission Council (GMAC) notes that "the demand for AI-related skills grew faster than any other capability surveyed this year." As AI continues to reshape the job market, business schools are adapting by expanding AI course offerings. Despite concerns about job losses, many employers, including 35% in a ZipRecruiter survey, expect AI to increase employment in their companies over the next few years.

The Hill

REGULATION

CFPB supervisor warned staff against aggressive oversight of financial firms

A senior supervisor at the U.S. Consumer Financial Protection Bureau (CFPB) warned staff they could face "the most unpleasant" consequences if they made inflammatory or overly aggressive remarks during examinations of financial firms, according to an internal email obtained by Reuters. The message, sent by Chief Examiner Fatima Batie in May as the agency resumed inspections after a lengthy pause, has prompted criticism from former officials, who argue it could discourage rigorous oversight and embolden the companies the CFPB regulates. The email reflects the Trump administration's broader effort to scale back financial regulation. Former acting CFPB Director Russell Vought has said the agency has recalibrated its supervisory approach to minimize burdens on businesses, while agency leadership has reduced the number of examinations by around 50% and shifted focus away from areas such as student loans and medical debt. Similar changes have been introduced by other federal banking regulators, which have encouraged financial institutions to report concerns about examiner conduct.

Reuters

ECONOMY

Factory orders unexpectedly decline in June despite strong AI-driven investment

The Commerce Department reported on Tuesday that U.S. factory orders unexpectedly fell 0.3% in June, following a revised 1.1% decline in May, missing expectations for a modest rebound. The weakness was driven by sharp declines in orders for defense aircraft and mining, oil, and gas field machinery, although overall manufacturing activity continued to benefit from robust business investment in artificial intelligence infrastructure and front-loaded purchases aimed at mitigating supply chain disruptions and higher costs linked to the Middle East conflict. Underlying business investment remained resilient, with orders for non-defense capital goods excluding aircraft - a key measure of equipment spending plans - rising 1.2%, while shipments of those goods increased 2.0%. Demand for computers and electronic products climbed 3.2% from the previous month and 13.9% year over year, underscoring continued strength in AI-related spending, while orders also increased for electrical equipment, motor vehicles, commercial aircraft, and primary metals.

Reuters

INTERNATIONAL

Survey supports a better deal for PALM workers

A survey of more than 2,000 people has found that more than two-thirds support giving workers on the Pacific Australia Labour Mobility (PALM) scheme the right to change jobs if they are underpaid. About 33,000 temporary migrant workers from the Pacific Islands and East Timor currently live in Australia to fill the local shortage of unskilled and low-skilled labor. Morgan Harrington, a research manager at the Australia Institute, which carried out the poll, said that although the PALM scheme ensures a minimum wage, businesses working alongside the program can make deductions, including flights to Australia, visa costs, accommodation, and transportation of workers from their housed residence to the work site. "Once all of those deductions are made, PALM scheme workers can be left with very little in their pocket," Harrington said.

Yahoo News Australia

DSM-Firmenich to cut 1,000 jobs worldwide

Swiss-Dutch multinational chemical company DSM-Firmenich has launched a restructuring program aimed at reducing annual costs by €100m. The company, which employs over 28,500 people globally, has not disclosed the specific locations of job cuts. "It is a global cost-cutting program, but exactly where and how many jobs will be affected still has to be discussed with employee representatives," said a company spokesperson, who added that some positions will also be eliminated through natural attrition. Ed Leunissen, a board member at the CNV trade union, said he is not convinced the job cuts are justified. "I always have mixed feelings when a company posts strong profits but still decides to eliminate jobs," he observed. "It doesn't always have to be about constant growth, but we're seeing that mindset more and more."

NL Times

Congo's Ebola response hit by worker protests over late pay

Ebola response workers at treatment centers in eastern Congo are protesting as they call for the government to pay salaries and allowances that they say are nearly three months overdue. "We are facing an unjust situation that seriously jeopardizes the continuation of the response effort," the health workers said in a letter to President Felix Tshisekedi. The outbreak has infected 3,802 people and killed 1,707 since it was declared ⁠on May 15.

Reuters

OTHER

Italian garbagemen help recover lost €1m lottery ticket

An Italian woman's €1m lottery ticket was recovered from rubbish after she called on refuse collectors to help her retrieve it, according to the waste management company. The ticket was "miraculously still in one piece" after garbage workers combed through mounds of trash on their truck, said Roberto Nicola Toscano, the administrator of the SANB company in Italy's southern Puglia region. “We reconstructed the journey of the ticket, without much hope of finding it, as it had already been picked up by a garbage truck,” Toscano said. However, workers managed to identify the correct lorry and stopped it.

Daily Sabah

Deutsche Welle (EN)

France 24

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