Some fraying in the job market

Summary

Marketplace Morning Report: "Some Fraying in the Job Market" – June 6, 2025

In this episode of the Marketplace Morning Report, host David Brancaccio delves into the current state of the U.S. job market, explores the rise in consumer fraud, and examines Nintendo's strategic maneuvers amidst ongoing trade tensions. The episode provides listeners with insightful analysis, real-world stories, and expert opinions to paint a comprehensive picture of the economic landscape.

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1. Job Market Shows Signs of Slowing

Overview: David Brancaccio opens the discussion by addressing recent data indicating a cooling in the U.S. job market. While hiring numbers appear stable on the surface, a deeper dive reveals underlying weaknesses across various sectors.

Key Points:

• May Job Growth: The U.S. added 139,000 jobs in May, surpassing expectations by 14,000 (timestamp [01:09]).
• Revised Figures: Previous months' job gains for March and April were significantly revised downward by 90,000, highlighting a trend of sluggish growth this year compared to the robust hiring seen at the end of last year ([01:41]).
• Sector Analysis:
  • Strong Sectors: Healthcare and education continue to see healthy hiring.
  • Weakening Sectors: Construction, retail, and business services are experiencing declines, partly due to uncertainty over tariffs and closed borders affecting industries reliant on migrant workers ([02:15]).

Notable Quotes:

• Christopher Lowe, Chief Economist at FHN Financial: “There are a lot of foreign workers who help in that sector [retail].” ([02:32])
• David Brancaccio: “The unemployment rate just a touch higher. It still rounds to 4.2%, but it's been creeping incrementally higher now for three or four months.” ([02:15])

Implications: The gradual rise in the unemployment rate and the slowdown in job creation across key sectors suggest potential headwinds for the broader economy. Businesses may adopt a more cautious approach to hiring, and consumers might experience reduced spending power if the trend continues.

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2. High-Profile Meltdowns and Shareholder Value

Overview: The episode briefly touches on recent high-profile incidents involving influential figures like Elon Musk and former President Donald Trump, examining the impact of their actions on shareholder value.

Key Points:

• Elon Musk's public behavior has raised concerns among investors about potential risks to Tesla's stock and overall shareholder value.
• President Trump's public statements have led to volatile reactions in the market, exemplified by a 14% drop in Tesla's stock following his dismissal of a peace report, later recovering to a 5% increase ([03:42]).

Notable Quotes:

• David Brancaccio: “President Trump knocked down the published report of maybe peace talks today after Tesla stock closed down 14% yesterday. It's up 5% now.” ([03:42])

Implications: The actions of high-profile individuals can significantly influence market perceptions and stock prices, underscoring the importance of leadership behavior in maintaining investor confidence and corporate stability.

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3. Rising Consumer Fraud and Online Scams

Overview: A substantial portion of the episode is dedicated to the alarming increase in consumer fraud, particularly online scams. James Graham shares his personal experience with a fraudulent website, highlighting the challenges consumers face in combating digital deceit.

Key Points:

• FTC Report: The Federal Trade Commission reported that consumer fraud surged by 25% last year, with online scams being particularly prevalent ([06:01]).
• James Graham's Experience:
  • Attempted to purchase posters online for his son but received only digital download links after payment.
  • Discovered over 80 negative reviews on Trustpilot, indicating a widespread scam.
  • Efforts to report the scam led to limited responses from the hosting company, Shopify, which deferred responsibility to the scammer ([07:00] - [09:05]).
• Industry Response:
  • Reg Levy, Associate General Counsel for Tucows Domains: “We work closely with law enforcement, with abuse reporters and with our partners in the industry to look at the domain and evaluate whether or not there is something going on.” ([07:34])
  • Despite these efforts, shutting down scam sites remains challenging, emphasizing the need for consumer vigilance ([08:38]).

Notable Quotes:

• James Graham: “As a consumer, I've seen firsthand how hard it is to get smaller scam sites shut down.” ([07:43])
• Reg Levy: “All we can do is remove the domain so the content is still on the Internet.” ([07:43])
• James Graham: “Perhaps the best strategy for staying safe online is Vigilance.” ([08:57])

Implications: The rise in online scams underscores the importance of heightened consumer awareness and robust regulatory measures. While companies like Shopify have mechanisms to address fraud, the persistence of scam sites necessitates continuous improvement in detection and prevention strategies.

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4. Nintendo’s Strategic Moves Amid Trade Tensions

Overview: Nancy Marshall Genzer reports on Nintendo's launch of the Switch 2 console during a temporary lull in the U.S.-China trade war, exploring the company's efforts to navigate the complexities of international tariffs.

Key Points:

• Launch Timing: Nintendo chose to release the Switch 2 during a 90-day truce in trade tensions, aiming to capitalize on a favorable market window ([09:20]).
• Production Shift: To mitigate tariff impacts, Nintendo moved Switch production from China to Vietnam. However, the subsequent imposition of steep tariffs on Vietnam products poses new challenges ([09:38]).
• Pricing Strategy:
  • The console is priced at approximately $450, with pre-orders delayed from April to assess tariff effects.
  • Nintendo may maintain console prices by relying on revenue from online subscriptions and software sales, despite rising costs for accessories ([09:38]).
• Future Outlook: If tariffs on Vietnamese imports are reinstated, prices may increase during the holiday season, potentially impacting consumer demand ([09:38]).

Notable Quotes:

• Nancy Marshall Genzer: “Nintendo may try to hold down the price of the console, since much of its profits come from online subscriptions and software for the Switch.” ([09:38])

Implications: Nintendo's proactive adjustment of its supply chain highlights the intricate balance companies must maintain between production costs and consumer pricing. The potential reimposition of tariffs could affect not only Nintendo's profitability but also consumer purchasing behavior during peak seasons.

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Conclusion

This episode of the Marketplace Morning Report offers a multifaceted look at the current economic environment. From the subtle signs of job market cooling to the surge in online consumer fraud and the strategic responses of major corporations like Nintendo, listeners gain a nuanced understanding of the forces shaping today's economy. The discussions underscore the interconnectedness of global trade policies, corporate strategies, and consumer protections in maintaining economic stability and growth.

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For more insights and updates, tune in to the next episode of the Marketplace Morning Report.

Transcript

[Podcast Host]

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[David Brancaccio]

The month gone by, but we're seeing some fraying in the job market when you look beyond the averages. I'm David Brancaccio in Los Angeles. There's news that hiring in America was still okay in the aggregate, with 139,000 more people drawing paychecks in May. That's a bit higher than expected. The numbers for the month before, though, were revised down. Let's untangle this with Christopher Lowe, chief economist at FHN Financial in New York. Morning.

[Christopher Lowe]

Good morning, David.

[David Brancaccio]

Yeah, could have been worse, right? It's not terrible, but it's not fabulous.

[Christopher Lowe]

No, I think that's a really nice description of it. You know, 139,000 jobs added in May. That's just a little bit better than the 125,000 or so expected. But then you notice a 90,000 downward revision to March and April. And what that does is it means that job growth this year has five months of steady but sluggish numbers compared to some pretty heady job growth at the end of last year.

[David Brancaccio]

Yeah, and if you look at sectors, yes, there's decent hiring still in healthcare, teachers still getting hired at the state level, but there's a whole bunch of sectors here where things are looking a little weak. And that's gotta be in part due to uncertainty over tariffs.

[Christopher Lowe]

I think the tariff uncertainty is definitely part of it the fact that the borders are closed is also part of it. You know, you've got weakness, for example, in construction, which is seasonal and relies on a lot of migrant workers. You have retail's weakness. And retail is another category where hiring picks up in the summertime. And again, there are a lot of foreign workers who help in that sector. Leisure and hospitality growth decent, but you know, business services negative. Temp workers negative. That's the kind of thing you don't want to see because it tends to be a leading indicator of a slowdown in economic activity. And then digging into the separate household survey, what we saw was a really significant drop both in the number of people working and in in the labor force. So the unemployment rate just a touch higher. It still rounds to 4.2%, but it's been creeping incrementally higher now for three or four months.

[David Brancaccio]

Economist Christopher Lowe, in fact the chief economist at FHN Financial. Thank you, thank you, David. The Influencer Musk President Trump public meltdown brings with it lessons in the duty of CEOs not to destroy shareholder value with their extracurricular activities. The Marketplace Morning Report podcast has that discussion now. If you missed it on the air, Musk offered a piece of de escalation now, but President Trump knocked down the published report of maybe peace talks today after Tesla stock closed down 14% yesterday. It's up 5% now.

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[David Brancaccio]

In the US we collectively got swindled out of 12 and a half billion dollars last year. The Federal Trade Commission says consumer fraud up 25% in just a year. Online scams were one pervasive scheme. My Marketplace, BBC colleague James Graham found himself in the middle of an online scam and tells us the story of what he's learning.

[James Graham]

It all started with good intentions. I wanted to buy my brothers a present. This is my son. 12 year old Eric went on the website. It gives like really trustworthy reviews and it never arrived. The site suggested real posters at great prices, but all we received was an email with a few links supposedly to digital downloads. It turns out this was mentioned in the small print on the review site Trustpilot. There were more than 80 reviews, all negative. Here are a few read by BBC producers. Complete scam the sites designed and worded.

[Nancy Marshall Genzer]

To mislead you into thinking you're going.

[James Graham]

To receive a physical product says free.

[David Brancaccio]

Worldwide delivery, takes your address and then.

[Greenlight Representative]

Doesn'T send the poster.

[James Graham]

We'd only lost $30 but I called my bank and sent a report to UK fraud body Action Fraud. In the meantime, I tried to look into the ownership of the site. The global domain name system is managed by a non profit called icann. It has a site called Lookup which gives some information. This led me to a company called Tucows in Toronto which sells and manages domain names. It's actually one of the biggest in the world.

[Reg Levy]

My name is Reg Levy and I'm Associate General counsel for Tucows domains.

[James Graham]

What steps are taken when a potential scam site has been reported?

[Reg Levy]

We work closely with law enforcement, with abuse reporters and with our partners in the industry to look at the domain and evaluate whether or not there is something going on and then identify who is best situated to take action. Often it is the hosting company. Because the domain name registrar cannot remove content from a domain name, all we can do is remove the domain so the content is still on the Internet.

[James Graham]

In this case, the hoster was Shopify, the online payments giant also headquartered in Canada.

[Greenlight Representative]

With Shopify you have everything you need to supercharge your business.

[James Graham]

Shopify was also processing the payments. It has a complaints process. So I sent an email and got this reply voiced by a producer to.

[Greenlight Representative]

Discuss this issue further, please contact the store directly. Please note there will be no follow up from Shopify on your report.

[James Graham]

I wanted to ask Shopify if it was doing enough here, but despite sending several emails to its media team, I've still had no response. As a consumer, I've seen firsthand how hard it is to get smaller scam sites shut down. Perhaps the best strategy for staying safe online is Vigilance. Katyada is from the UK consumer magazine.

[Dana Farber Representative]

Which if a price seems too good.

[Greenlight Representative]

To be true, then it probably is.

[James Graham]

Don't feel pressured into making any purchases.

[Dana Farber Representative]

And always do your research.

[James Graham]

As for my case, the bank refunded the money, but Action Fraud said there were no lines of inquiry for the police to pursue. The site is still up and people are still complaining on Trustpilot in the UK I'm the BBC's James Graham for Marketplace.

[David Brancaccio]

The blasts came from import taxes, but electronics giant Nintendo has managed to dodge some of the incoming. It launched its Switch 2 video game console yesterday, as scheduled during a lull in tariffs. But after a successful launch will come new challenges marketplaces. Nancy Marshall Genzer reports.

[Nancy Marshall Genzer]

Nintendo launched the new switch during a 90 day truce in the Trump administration's trade war. Fans lined up for simultaneous launches in San Francisco and New York, barely blinking at the nearly $450 price tag. Nintendo Switch 2 pre orders were supposed to start in early April, but the company delayed that, saying it needed to assess the potential impact of tariffs. Nintendo moved production of the Switch from China to Vietnam at the end of the first Trump administration to avoid tariffs on import from China, but the second Trump administration slapped steep tariffs on Vietnam. They're on hold for now, but if they snap into place later this year, that could affect prices during the holiday season. Consumers are already paying more for some Switch accessories. Nintendo may try to hold down the price of the console, since much of its profits come from online subscriptions and software for the Switch. I'm Nancy Marshall Genzer for Marketplace.

[David Brancaccio]

It's a Marketplace morning report from APM American Public Media. Really quick before you go, please complete a short anonymous survey by going to marketplace.org survey. It should only take about 10 minutes, and as a token of our appreciation, you can enter your name to win a $75 gift card. When you've completed the survey, you do all of us at Marketplace a huge favor by filling it out.