The Labor Department reported Friday that job growth fell to its slowest pace this year with 194,000 new jobs, down from August’s 366,000, which was revised upward significantly by 131,000. Economists had projected 500,000.
The unemployment rate dropped to 4.8% from 5.2%, with the number of unemployed people falling by 710,000 to 7.7 million. Total private sector jobs increased by 317,000. Public sector jobs, however, offset the gain with a loss of 123,000, mostly at the local education level.
On Wednesday, ADP reported an increase of 568,000 in private payroll jobs to beat expectations by roughly 168,000.
Global Minimum Tax Deal Hits MilestoneMore than 130 countries have agreed to set a minimum corporate tax rate of 15% on multinational companies.
The Organization for Economic Cooperation and Development announced Friday that 136 countries of its 140 members had signed onto reforming international tax rules in an effort to reduce the financial impact of tax havens.
Estonia, Ireland and Hungary were the most recent to join the agreement. Kenya, Nigeria, Pakistan and Sri Lanka haven’t signed it.
The OECD said in its announcement that the goal isn’t to eliminate tax competition but puts limits on it through the agreement. The minimum tax would be applied to companies generating at least $866 million in revenue per year, which would bring in an estimated $150 billion in taxes collectively each year starting in 2023.
President Biden started pushing for the minimum tax after being elected and seeks to raise corporate taxes in the United States while reducing incentives for companies to shift profits out of the country to lower their tax burden.
Source: CoStar Group, www.costar.com