Latest news with #wage
Yahoo
17 hours ago
- Business
- Yahoo
Ford CEO Found Young People Didn't Want to Work There Because $17 Wages Left Them 'So Stressed' - Then He Made An Expensive Change 'The Country Needs'
Turns out, a $17-an-hour paycheck doesn't go as far as it used to—especially if you're young, exhausted, and juggling two jobs just to survive. Ford (NYSE:F) CEO Jim Farley heard this loud and clear from his own factory floors. And instead of shrugging it off or blaming "kids these days," he made a move that echoed the bold playbook of Henry Ford himself—one that he says America desperately needs more of. In a June interview at the Aspen Ideas Festival with Walter Isaacson—the renowned biographer best known for his books on Steve Jobs, Leonardo da Vinci, and Elon Musk—Farley peeled back the curtain on what younger workers were really telling him about life on a $17 wage. Don't Miss: 7,000+ investors have joined Timeplast's mission to eliminate microplastics—now it's your turn to $100k+ in investable assets? – no cost, no obligation. "The older workers who'd been at the company said, 'None of the young people want to work here. Jim, you pay $17 an hour, and they are so stressed,'" Farley recalled. "They've got to work at Amazon for eight hours, then they come over to Ford for seven hours, and then they sleep for three or four hours—and then they go back. And they're barely getting by." Rather than issue a tone-deaf memo or wait for another generation to settle for less, Farley made a decisive, expensive change: he converted every temporary worker into a full-time employee. "It wasn't easy to do," he admitted. "It was expensive. But I think that's the kind of changes we need to make in our country." Farley's move isn't just about better paychecks—it's about reviving an old-school idea that once turned Ford into a powerhouse: when you pay workers well, they can afford the products they help build. Trending: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can Quoting the legendary Henry Ford, Farley said, "'I'm doing this because I want my factory worker to buy my cars. If they make enough money, they'll buy my own product.'" Then he added, "It's a self-fulfilling prophecy, in a way." In 1914, Henry Ford famously raised factory wages to $5 a day—nearly double the going rate. It wasn't a random act of generosity. It was a smart bet that higher wages would lead to a more stable, productive workforce and—bonus—more people who could afford to drive off in a Model T. According to Farley, it worked then, and it can work now. He also pointed to deeper structural issues. For Farley, the wage issue is just one layer of a bigger challenge: the U.S. hasn't kept up in preparing young people for careers in skilled trades. "Our governments have to get really serious about investing in trade schools and skilled trades," Farley said. "You go to Germany—every one of our factory workers has an apprentice starting in junior high school. Every one of those jobs has a person behind it for eight years that is trained."Farley's big bet may not please Wall Street, but it's not aimed at them. "We decided as a company that a cooler problem than full autonomy in an urban setting was high-speed, eyes-off driving on highways—push a button, read a book," he told Isaacson, in reference to how Ford picks its battles. When it comes to labor, he's taking that same eyes-on-the-road approach—focusing on people, not just profits. And while turning temps into full-timers might not boost short-term stock prices, Farley's betting on a longer game: one where the people building America's cars can actually afford to drive them. Read Next: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? FORD MOTOR (F): Free Stock Analysis Report This article Ford CEO Found Young People Didn't Want to Work There Because $17 Wages Left Them 'So Stressed' - Then He Made An Expensive Change 'The Country Needs' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Solve the daily Crossword
Free Malaysia Today
3 days ago
- Business
- Free Malaysia Today
Median monthly wage for formal sector hits RM3,000 in Q1 2025
As of March, the formal sector workforce stood at 6.8 million, comprising 55.1% men and 44.9% women. PUTRAJAYA : The median monthly wage for Malaysia's formal sector rose 5.5% to RM3,000 in March, up from RM2,844 a year earlier, according to the Employee Wages Statistics (Formal Sector) Report for the first quarter of 2025, released by the statistics department today. Chief statistician Uzir Mahidin said the increase reflected the country's continued economic growth and the impact of the revised minimum wage policy, which he said had positively influenced the labour market. In a statement, he said that as of March, the formal sector workforce stood at 6.8 million, comprising 55.1% men and 44.9% women. The median wage for male employees remained at RM3,000, while female employees saw a 6.5% increase to RM2,982. The highest year-on-year wage growth was recorded among workers under 20, whose median wage rose 13.3% to RM1,700, largely driven by the reimplementation of the minimum wage policy in February. However, a slight drop was observed in the number of workers aged 20 to 24. Uzir said the mining and quarrying sector posted the highest median wage at RM8,800, although it accounted for just 0.6% of total formal employment. The agriculture sector remained the lowest, with a median wage of RM2,200. Geographically, Kuala Lumpur recorded the highest median monthly wage at RM4,445 in March 2025, followed by Selangor at RM3,300. At the other end of the spectrum, Sabah posted a median wage of RM2,000, while Kelantan and Perlis recorded the lowest at RM1,800. Uzir said 27.4% of Malaysian formal sector workers earned below RM2,000 per month as of March, down 3.8 percentage points from 31.2% in the same month last year. He said a percentile analysis revealed that workers in the bottom 10th percentile earned RM1,700 or less, while those in the top 10th percentile earned at least RM11,000 per month. 'This reflects an income gap where the top 10% earn six times more than the bottom 10%,' he said.
Globe and Mail
5 days ago
- Business
- Globe and Mail
Social Security's 2026 COLA Has the Makings of a No-Win Situation
Key Points Many Social Security recipients are hoping for a generous cost-of-living adjustment (COLA) in 2026. Recent inflation data indicates that next year's raise may be larger than this year's. A more generous COLA isn't necessarily a good thing for Social Security beneficiaries, even though it might seem like it is. The $23,760 Social Security bonus most retirees completely overlook › When you're waiting on big news that affects your day-to-day finances, it's never easy to sit tight and keep calm. Say you're anticipating a large holiday bonus from your employer and you know that announcement is coming in a matter of months. It can be difficult to push thoughts of that bonus out of your mind and focus on other things. Similarly, seniors on Social Security are ready to know what their 2026 cost-of-living adjustment (COLA) is going to amount to -- and we're getting closer to when an official announcement will be made. Recent inflation data just gave us a big clue as to what to expect out of next year's Social Security COLA. Unfortunately, the news isn't so great -- even though it might seem positive at first. Why seniors on Social Security won't win out in 2025 The purpose of Social Security COLAs is to help beneficiaries maintain their buying power as inflation makes life more expensive across the board. Social Security COLAs are based on third-quarter changes to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Because we don't have any third-quarter CPI-W data yet, it's too soon to figure out what the upcoming COLA will be. That said, experts can use the most current inflation data to make an educated guess about 2026's COLA. Based on June's inflation numbers, the Senior Citizens League, an advocacy group, is estimating a 2.6% COLA for 2026. On the one hand, that's good news, since the group's last estimate pointed to a 2026 COLA of just 2.5%. On the other hand, a larger Social Security increase is not necessarily a good thing. Because COLAs and inflation go hand in hand, a larger COLA is an indication that living costs are rising at a more uncomfortable pace. Put another way, what seniors on Social Security gain in the form of a more generous COLA, they might easily lose in the form of paying more for food, utilities, fuel, and other essentials. It's important to have realistic expectations There are people who hope each year that their Social Security COLA will help them gain buying power. But that's unlikely to happen. The purpose of COLAs isn't to help Social Security recipients get ahead financially. Rather, it's simply to make sure they don't fall behind. Over the years, Social Security COLAs have failed seniors due to problems in the way they're measured. There's unfortunately a good chance that 2026's COLA will fall short as well, no matter what it amounts to. For this reason, in the context of COLAs, there are unlikely to be any real winners in 2026 -- and it's important to recognize that and have realistic expectations. In a best-case scenario, seniors will break even next year. But that's not particularly helpful for retirees on Social Security who feel financially strained already. Anyone in that boat should look at cutting expenses or seeking out part-time work, rather than banking on a COLA. Even if next year's number is surprisingly high, it ultimately may not do a world of good. The $23,760 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.
