Reuters World News - No experience required: A Minnesota factory’s hunt for staff

Episode Date: May 2, 2023

It’s a jobseeker’s market across America. No experience, no qualifications? No problem, says one Minnesota factory searching for workers. The Filipino president’s tightrope walk between keeping the U.S. sweet and maintaining bonds with China. And conflict in Sudan threatens to spill over. Visit the Thomson Reuters Privacy Statement for information on our privacy and data protection practices. You may also visit megaphone.fm/adchoices to opt-out of targeted advertising Learn more about your ad choices. Visit megaphone.fm/adchoices

Today, the Philippines and the US reaffirmed their decades-old security alliance. But when it comes to China, Ferdinand Marcos has his red lines. We're in Minnesota, where a red-hot jobs market has employers duking it out for staff. It's a really body-by-body job-by-job battle. And all the glamour from the Met Gala, where a cockroach almost stole the show. It's Tuesday, May 2nd. This is Reuters World News, bringing you everything you need to know from the front lines in 10 minutes. I'm Kim Vennel in London.

But first, the headlines. Thousands of film and television writers go on strike today, throwing Hollywood into turmoil. The Writers Guild of America called its first strike in 15 years after failing to reach a last-minute deal with major studios for more pay. Tensions are high in Gaza after the death. of a prominent Palestinian militant on hunger strike in an Israeli jail. Qadar Adnan had refused food for 87 days. He's the first Palestinian hunger striker to die in over 30 years. The latest dust up in the Disney and Ron DeSantis feud.

A board, backed by the Florida governor, is counter-sewing Walt Disney for authority over its Florida theme parks. Australia has banned recreational vaping and the biggest crackdown on the tobacco industry in years. Under the rules, vapes will only be sold in pharmacies and require pharmaceutical-type packaging. Philippine President Ferdinand Marcos is navigating some tricky geopolitical waters right now. At the White House, he stressed the importance of the security alliance with the US.

But he also wants to keep the peace with neighbouring China, So how was he pivoting back to the U.S. while keeping things friendly with Beijing? Our Philippine Bureau Chief, Karen Lema, explains. Hey, Karen. Hi, Kim. Why is it so important for President Marcos to court both the U.S. and China? Well, you know, from when he was campaigning for president, he already made it clear that he was going to walk a tightro balancing his country's relationship

between the United States and China. On the one hand, he said that he could not see the future of his country without the United States. So that says a lot. On the other hand, China is the Philippines's largest trading partner. So it really is a difficult balancing act for the president. How far is the Philippines willing to go in terms of military cooperation with the U.S.? Philippine President Ferdin Marcus Jr. in February decided to grant the United States expanded access to its military basis. And three of these sites are located on the main island of Luzon, which is closest to Taiwan.

So while President Marcus made it clear that none of these sites would be used in any offensive action, that wasn't enough to allay the concerns of China, which reason they accused. the Philippines of stoking fire. Karen, thanks so much. You're welcome. While Biden was discussing defence in the economy with President Marcos, his Treasury secretary issued a dire warning

about US debt. Our own Campbell Crimmons is here to explain. Jan has said the US could run out of money to pay its bills by June 1st. That's if Congress doesn't raise or suspend the debt limit. That's sooner, obviously, than we had previously expected. It's definitely fired a rock under efforts to sort this situation out. Joe Biden has now invited the four leaders of Congress

to come to the White House on May 9th to discuss the debt ceiling. So that the negotiations begin. Kamel, thanks so much. Sounds of gunfire echo in Khartoum, puncturing yet another ceasefire in Sudan. UN officials are warning that 800,000 people may flee Sudan as fighting between rival military forces rages for a third week. At this refugee camp in neighbouring Chad, many families fleeing the conflict arrived by foot, carrying few possessions, while others used horses and donkeys to travel across the border. The UN said at least 20,000 have made the trip into Chad. Joining me now is Reuters Bureau Chief for Egypt and Sudan.

Aidan, Aidan. Hi, Aidan. Hello. Just give us a sense of the scale of the exodus happening right now. I think there's already been enormous pressure. at some of the borders, including the Egyptian one and the people trying to leave Port Sudan across the Red Sea. On the west and the southern borders, it's going to be a particular challenge just because these countries, the countries that border Sudan, are very poor. So in one sense, this kind of turmoil isn't new to them, but they're also incredibly ill-equipped

to deal with humanitarian emergencies. Is there a risk the violence could spill over here? Yes, I think many people are worried about the risk of spillover across Sudan's borders. Sudan is in a volatile region between the Middle East and Africa, and many of the countries surrounding it have been affected by their own conflicts. There are cross-border conflicts, particularly in Western Sudan, crossing over from Darfur into Chad and the Central African Republic. In the other direction, you've got countries like Ethiopia and Eritrea, which have been also affected by conflict and which have complicated relations with Sudan.

Aiden Lewis, thanks so much. For those who stayed put in the capital, just cooking a meal is a struggle without access to water, electricity or food. Heber and her family left their house where RSF forces have been stationed and rented a room in another part of Khartoum. She says she's concerned not only about the barrage of gunfire,

but also about rationing the little food she has to keep herself and her family fed. The number of out-of-work Americans right now is near an historic low, and that's leading employers in fields like nursing and manufacturing to scramble, to attract and then keep workers. Our reporter Howard Schneider visited a factory, in Minnesota, to understand why the strong economy for workers is turning the screws on employers. So there's a Dikin, which is a subsidiary of a Japanese company. They make big, big air conditioners. And this is in a rural part of Minnesota, as many factories are right now, sort of carved into

what used to be farm fields. A lot of robotics, not so many people, but even amidst all this automation, they still need bodies. So what are they doing to attract workers? Yeah, well, look, everybody's having trouble hiring. They have put bonuses on the table. They have recruited directly in places like women's shelters, immigrant care groups, things like that. They don't really even look so much at a resume. They will take people without a high school degree,

without manufacturing experience. This is our dojo. This is where we train all new hires in everything from the beginning, entry level, power tool, skills. In the back, you got brazing where... I talked to a one mention. I'm from Brazil. Uh-huh.

I've been here in Minnesota for 14 months. As soon as he got his work papers and things like that in order, he went online, applied, got an email for a phone interview the next, and had a job offer in nine days. Dikin's a big company. Sometimes you just need an opportunity. So things are moving really, really super fast. Wow. And that's not unique to this one company, right? Oh, not at all. I mean, this is happening throughout the... the American economy, in the service sector, in the good sector, wherever you look, there is a premium on people showing up for a job right now.

So what does that say about the Federal Reserve's efforts to try and cool the economy? Well, listen, this is what I was trying to understand by going out to Minnesota, and I think there is some evidence that you could slow the economy through job openings, not necessarily a loss in jobs, unemployment, right? And you do see job openings in Minnesota. Minnesota start to cool down a little bit without any rise in the unemployment rates. So that's the upside of what the Fed's trying to do. Downside, I would say, is this. The job opening rates in a lot of industries remain super, super high.

And in places like food service, you can see where a slowing economy, slowing demand, might actually translate into fewer job openings. But some of the big dislocations are in things like nursing, healthcare. These are not discretionary goods. land is not going to change so much, even if the economy overall slows. All right. Thanks so much for joining me, Howard. Sure thing. The glitz, the glamour, the cockroach.

The surprise insect guest joined A-List celebrities walking the red carpet for the Met Gala. This year's theme was in honor of late Chanel designer Carl Lagerfield. Actor Jared Lederdo took the homage to another level, dressing as Lagerfield's beloved cat, Shuppet. Tennis star Serena Williams was also at the gala and used the opportunity to confirm that she is expecting her second child. That's it for today's edition of Reuters World News. We're back tomorrow.

Before you go, we'd love for you to tell us what you think about the show. There's a survey in the pod's description on the Reuters website or your preferred podcast platform.