Benjamin Whitely headed to a Safeway supermarket in Washington D.C. on Tuesday to grab some items for dinner. But he was disappointed to find the vegetable bins barren and a sparse selection of turkey, chicken and milk.

“Seems like I missed out on everything,” Whitely, 67, said. “I’m going to have to hunt around for stuff now.”

Shortages at U.S. grocery stores have grown more acute in recent weeks as new problems — like the fast-spreading omicron variant and severe weather — have piled on to the supply chain struggles and labor shortages that have plagued retailers since the coronavirus pandemic began.

The shortages are widespread, impacting produce and meat as well as packaged goods such as cereal. And they’re being reported nationwide. U.S. groceries typically have 5% to 10% of their items out of stock at any given time; right now, that unavailability rate is hovering around 15%, according to Consumer Brands Association President and CEO Geoff Freeman.

Part of the scarcity consumers are seeing on store shelves is due to pandemic trends that never abated – and are exacerbated by omicron. Americans are eating at home more than they used to, especially since offices and some schools remain closed.

The average U.S. household spent $144 per week at the grocery last year, according to FMI, a trade organization for groceries and food producers. That was down from the peak of $161 in 2020, but still far above the $113.50 that households spent in 2019.

A deficit of truck drivers that started building before the pandemic also remains a problem. The American Trucking Associations said in October that the U.S. was short an estimated 80,000 drivers, a historic high.

And shipping remains delayed, impacting everything from imported foods to packaging that is printed overseas.

Retailers and food producers have been adjusting to those realities since early 2020, when panic buying at the start of the pandemic sent the industry into a tailspin. Many retailers are keeping more supplies of things like toilet paper on hand, for example, to avoid acute shortages.

“All of the players in the supply chain ecosystem have gotten to a point where they have that playbook and they’re able to navigate that baseline level of challenges,” said Jessica Dankert, vice president of supply chain at the Retail Industry Leaders Association, a trade group.

Generally, the system works; Dankert notes that bare shelves have been a rare phenomenon over the last 20 months. It’s just that additional complications have stacked up on that baseline at the moment, she said.

As it has with staffing at hospitals, schools and offices, the omicron variant has taken a toll on food production lines. Sean Connolly, the president and CEO of Conagra Brands, which makes Birds Eye frozen vegetables, Slim Jim meat snacks and other products, told investors last week that supplies from the company’s U.S. plants will be constrained for at least the next month due to omicron-related absences.

Worker illness is also impacting grocery stores. Stew Leonard Jr. is president and CEO of Stew Leonard’s, a supermarket chain that operates stores in Connecticut, New York and New Jersey. Last week, 8% of his workers – around 200 people – were either out sick or in quarantine. Usually, the level of absenteeism is more like 2%.

One store bakery had so many people out sick that it dropped some of its usual items, like apple crumb cake. Leonard says meat and produce suppliers have told him they are also dealing with omicron-related worker shortages.

Still, Leonard says he is generally getting shipments on time, and thinks the worst of the pandemic may already be over.

Weather-related events, from snowstorms in the Northeast to wildfires in Colorado, also have impacted product availability and caused some shoppers to stock up more than usual, exacerbating supply problems caused by the pandemic.

Lisa DeLima, a spokesperson for Mom’s Organic Market, an independent grocer with locations in the mid-Atlantic region, said the company’s stores did not have produce to stock last weekend because winter weather halted trucks trying to get from Pennsylvania to Washington.

That bottleneck has since been resolved, DeLima said. In her view, the intermittent dearth of certain items shoppers see now are nothing compared to the more chronic shortages at the beginning of the pandemic.

“People don’t need to panic buy,” she said. “There’s plenty of product to be had. It’s just taking a little longer to get from point A to point B.”

Experts are divided on how long grocery shopping will sometimes feel like a scavenger hunt.

Dankert thinks this is a hiccup, and the country will soon settle back to more normal patterns, albeit with continuing supply chain headaches and labor shortages.

“You’re not going to see long-term outages of products, just sporadic, isolated incidents __ that window where it takes a minute for the supply chain to catch up,” she said.

But others aren’t so optimistic.

Freeman, of the Consumer Brands Association, says omicron-related disruptions could expand as the variant grips the Midwest, where many big packaged food companies like Kellogg Co. and General Mills Inc. have operations.

Freeman thinks the federal government should do a better job of ensuring that essential food workers get access to tests. He also wishes there were uniform rules for things like quarantining procedures for vaccinated workers; right now, he said, companies are dealing with a patchwork of local regulations.

“I think, as we’ve seen before, this eases as each wave eases. But the question is, do we have to be at the whims of the virus, or can we produce the amount of tests we need?” Freeman said.

In the longer term, it could take groceries and food companies a while to figure out the customer buying patterns that emerge as the pandemic ebbs, said Doug Baker, vice president of industry relations for food industry association FMI.

“We went from a just-in-time inventory system to unprecedented demand on top of unprecedented demand,” he said. “We’re going to be playing with that whole inventory system for several years to come.”

In the meantime, Whitely, the Safeway customer in Washington, said he’s lucky he’s retired because he can spend the day looking for produce if the first stores he tries are out. People who have to work or take care of sick loved ones don’t have that luxury, he said.

“Some are trying to get food to survive. I’m just trying to cook a casserole,” he said.
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Це рішення урядовці пояснюють тенденцією до зростання споживчих цін на харчові продукти від початку 2021 року на внутрішньому ринку України
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Cyberthreats and the growing space race are emerging risks to the global economy, adding to existing challenges posed by climate change and the coronavirus pandemic, the World Economic Forum said in a report Tuesday.  

The Global Risks Report is usually released ahead of the annual elite winter gathering of CEOs and world leaders in the Swiss ski resort of Davos, but the event has been postponed for a second year in a row because of COVID-19. The World Economic Forum still plans some virtual sessions next week. 

Here’s a rundown of the report, which is based on a survey of about 1,000 experts and leaders:  

World outlook 

As 2022 begins, the pandemic and its economic and societal impacts still pose a “critical threat” to the world, the report said. Big differences between rich and poor nations’ access to vaccines mean their economies are recovering at uneven rates, which could widen social divisions and heighten geopolitical tensions. 

By 2024, the global economy is forecast to be 2.3% smaller than it would have been without the pandemic. But that masks the different rates of growth between developing nations, whose economies are forecast to be 5.5% smaller than before the pandemic, and rich countries, which are expected to expand 0.9%.  

Digital dangers 

The pandemic forced a huge shift — requiring many people to work or attend class from home and giving rise to an exploding number of online platforms and devices to aid a transformation that has dramatically increased security risks, the report said.  

“We’re at the point now where cyberthreats are growing faster than our ability to effectively prevent and manage them,” said Carolina Klint, a risk management leader at Marsh, whose parent company Marsh McLennan co-authored the report with Zurich Insurance Group and SK Group.  

Cyberattacks are becoming more aggressive and widespread, as criminals use tougher tactics to go after more vulnerable targets, the report said. Malware and ransomware attacks have boomed, while the rise of cryptocurrencies makes it easy for online criminals to hide payments they have collected.  

While those responding to the survey cited cybersecurity threats as a short- and medium-term risk, Klint said the report’s authors were concerned that the issue wasn’t ranked higher, suggesting it’s a “blind spot” for companies and governments. 

Space race 

Space is the final frontier — for risk.  

Falling costs for launch technology has led to a new space race between companies and governments. Last year, Amazon founder Jeff Bezos’ space tourism venture Blue Origin and Virgin Galactic’s Richard Branson took off, while Elon Musk’s Space X business made big gains in launching astronauts and satellites.  

Meanwhile, a host of countries are beefing up their space programs as they chase geopolitical and military power or scientific and commercial gains, the report said.  

But all these programs raise the risk of friction in orbit.  

“Increased exploitation of these orbits carries the risk of congestion, an increase in debris and the possibility of collisions in a realm with few governance structures to mitigate new threats,” the report said.  

Space exploitation is one of the areas that respondents thought had among the least amount of international collaboration to deal with the challenges.  

Experts and leaders responding to the survey “don’t believe that much is being done in the best possible way moving forward,” World Economic Forum’s managing director, Saadia Zahidi, said at a virtual press briefing from Geneva.  

Other areas include artificial intelligence, cyberattacks and migration and refugees, she said.  

Climate crisis  

The environment remains the biggest long-term worry.  

The planet’s health over the next decade is the dominant concern, according to survey respondents, who cited failure to act on climate change, extreme weather, and loss of biodiversity as the top three risks.  

The report noted that different countries are taking different approaches, with some moving faster to adopt a zero-carbon model than others. Both approaches come with downsides. While moving slowly could radicalize more people who think the government isn’t acting urgently, a faster shift away from carbon intense industries could spark economic turmoil and throw millions out of work.  

“Adopting hasty environmental policies could also have unintended consequences for nature,” the report added. “There are still many unknown risks from deploying untested biotechnical and geoengineering technologies.” 
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Warning that high inflation could make it harder to restore the job market to full health, Federal Reserve Chair Jerome Powell said Tuesday that the Fed will raise interest rates faster than it now plans if needed to stem surging prices.

With America’s households squeezed by higher costs for food, gas, rent, autos and many other items, the Fed is under pressure to rein in inflation by raising rates to slow borrowing and spending. At the same time, the economy has recovered enough that the Fed’s ultra-low-interest rate policies are no longer needed.

“If we have to raise interest rates more over time, we will,” Powell said during a hearing of the Senate Banking Committee, which is considering his nomination for a second four-year term.

The stark challenge for Powell if he is confirmed for a new term, as expected, was underscored by the questions he faced Tuesday from both Democratic and Republican senators. They pressed him to raise rates to reduce inflation, though without ramping up borrowing costs so much that the economy tumbles into a recession.  

Fed officials have forecast three increases in their benchmark short-term rate this year, though some economists say they envision as many as four hikes in 2022.  

Powell’s nomination is expected to be approved by the committee sometime in the coming weeks and then confirmed by the full Senate with bipartisan support. At Tuesday’s hearing, he drew mostly supportive comments from senators from both parties. A Republican first elevated to the chair by then-President Donald Trump, Powell has also been credited by many Democrats for sticking with ultra-low-rate policies to support rapid hiring for the past 18 months.  

In his testimony, Powell rebuffed suggestions from some Democratic senators that rate increases would weaken hiring and potentially leave many people, particularly lower-income and Black Americans, without jobs. Fed rate increases usually boost borrowing costs on many consumer and business loans and have the effect of slowing the economy.

But Powell argued that rising inflation, if it persists, also poses a threat to the Fed’s goal of getting nearly everyone who wants a job back to work. Low-income families have been particularly hurt by the surge in inflation, which has wiped out the pay increases that many have received.

“High inflation is a severe threat to the achievement of maximum employment,” he said.

The economy, the Fed chair added, must grow for an extended period to put as many Americans back to work as possible. Controlling inflation before it becomes entrenched is necessary to keep the economy expanding, he said. If prices keep rising, the Fed could be forced to slam on the brakes much harder by sharply raising interest rates, threatening hiring and growth.  

Powell won praise from Ohio Democratic Sen. Sherrod Brown, the chairman of the committee, and Pennsylvania Sen. Pat Toomey, the senior Republican on the panel.  

“The president is putting results over partisanship, re-nominating a Federal Reserve chair of the other political party,” Brown said. “As chair, together with President Biden, he has helped us deliver historic economic progress.”

“There is broad bipartisan backing for Chairman Powell’s re-nomination,” Toomey added.

Still, Toomey also criticized some of the Fed’s 12 regional banks for holding events that addressed climate change and “so-called racial justice,” which, Toomey argued, went far beyond the Fed’s mandate. He cited one event, organized by the Federal Reserve Bank of Boston, in which he said participants called for defunding police.  

“The troubling politicization of the Fed puts its independence and effectiveness at risk,” Toomey said.

And Sen. Richard Shelby, an Alabama Republican, criticized Powell for the central bank’s initial characterization of the price spikes that began this spring as “transitory.”

“I’m concerned if the Fed missed the boat on addressing inflation sooner, a lot of us are,” Shelby said. “As a result of that, the Fed under your leadership has lost a lot of credibility.”

Inflation has soared to the highest levels in four decades, and on Wednesday the government is expected to report that consumer prices jumped 7.1% over the past 12 months, which would be the largest such jump since 1982.

Powell said the Fed mistakenly expected that supply chain bottlenecks driving up prices for goods such as cars, appliances and furniture would not last nearly as long as they have. Once unsnarled, prices for things like used cars, which have spiked in the past year, would come back down, he said.  

But for now, those supply chain problems have persisted, and while there are signs they are loosening, Powell said that progress is limited. He noted that many cargo ships remain docked outside the port of Los Angeles and Long Beach, the nation’s largest, waiting to unload.  

The number of people working or looking for work also remains far below pre-pandemic levels, Powell noted. Millions of Americans have retired early or are avoiding jobs because of fear of the coronavirus. The Fed had anticipated that more of those people would return to the workforce than have done so.  

The smaller workforce has forced businesses to offer much higher pay to attract and keep employees. Powell said that isn’t mainly why prices are high right now, but it “can be an issue going forward for inflation.”

Economists and former Fed officials are raising concerns that the Fed is behind the curve on inflation. Last Friday’s jobs report for December, which showed a sharp drop in the unemployment rate to a healthy 3.9%, and an unexpected wage increase, has helped fan those concerns. While lower unemployment and higher pay benefit workers, those trends can potentially fuel rising prices by encouraging more spending.  

At the Fed’s most recent meeting in December, Powell said the central bank was rapidly accelerating its efforts to tighten credit with the goal of reining in inflation. The Fed will stop buying billions of dollars of bonds in March, ahead of its previously announced goal of doing so in June. Those bond purchases have been intended to encourage more borrowing and spending by lowering longer-term rates.  

And Fed officials’ expectation that they will raise short-term rates three times this year marks a sharp shift from September, when they were divided over doing it even once.  

The flood of new omicron infections won’t slow the Fed’s shift toward policies more appropriate for an economy getting back to normal, Powell said at the hearing, because so far it doesn’t appear to be weighing on the economy.  

“It is really time for us to move away from those emergency pandemic settings to a more normal level,” he added. “It’s a long road to normal from where we are.”
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На міжбанку в останню годину торгів 11 січня фіксуються котирування 27 гривень 61–63 копійки за долар
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За підсумками 2021 року держава отримала 1,62 мільярда гривень
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На міжбанку в останню годину торгів 10 січня фіксуються котирування 27 гривень 49–51 копійка за долар
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За даними помпанії, на правій основній опорі шасі літака зрізало болти фіксації датчика, але несправність «не вплинула на безпеку польоту та посадки»
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As the raging omicron variant of COVID-19 infects workers across the nation, millions of those whose jobs don’t provide paid sick days are having to choose between their health and their paycheck.

While many companies instituted more robust sick leave policies at the beginning of the pandemic, some of those have since been scaled back with the rollout of the vaccines, even though omicron has managed to evade the shots. Meanwhile, the current labor shortage is adding to the pressure of workers having to decide whether to show up to their job sick if they can’t afford to stay home. 

“It’s a vicious cycle,” said Daniel Schneider, professor of public policy at the Harvard Kennedy School of Government. “As staffing gets depleted because people are out sick, that means that those that are on the job have more to do and are even more reluctant to call in sick when they in turn get sick.” 

Low-income hourly workers are especially vulnerable. Nearly 80% of all private sector workers get at least one paid sick day, according to a national compensation survey of employee benefits conducted in March by the U.S. Bureau of Labor Statistics. But only 33% of workers whose wages are at the bottom 10% get paid sick leave, compared with 95% in the top 10%. 

A survey this past fall of roughly 6,600 hourly low-wage workers conducted by Harvard’s Shift Project, which focuses on inequality, found that 65% of those workers who reported being sick in the last month said they went to work anyway. That’s lower than the 85% who showed up to work sick before the pandemic, but much higher than it should be in the middle of a public health crisis. Schneider says it could get worse because of omicron and the labor shortage. 

What’s more, Schneider noted that the share of workers with paid sick leave before the pandemic barely budged during the pandemic — 50% versus 51% respectively. He further noted many of the working poor surveyed don’t even have $400 in emergency funds, and families will now be even more financially strapped with the expiration of the child tax credit, which had put a few hundred dollars in families’ pockets every month. 

The Associated Press interviewed one worker who started a new job with the state of New Mexico last month and started experiencing COVID-like symptoms earlier in the week. The worker, who asked not to be named because it might jeopardize their employment, took a day off to get tested and two more days to wait for the results.

A supervisor called and told the worker they would qualify for paid sick days only if the COVID test turns out to be positive. If the test is negative, the worker will have to take the days without pay, since they haven’t accrued enough time for sick leave.

“I thought I was doing the right thing by protecting my co-workers,” said the worker, who is still awaiting the results and estimates it will cost $160 per day of work missed if they test negative. “Now I wish I just would’ve gone to work and not said anything.” 

A Trader Joe’s worker in California, who also asked not to be named because they didn’t want to risk their job, said the company lets workers accrue paid time off that they can use for vacations or sick days. But once that time is used up, employees often feel like they can’t afford to take unpaid days.

“I think many people now come to work sick or with what they call ‘allergies’ because they feel they have no other choice,” the worker said. 

Trader Joe’s offered hazard pay until last spring, and even paid time off if workers had COVID-related symptoms. But the worker said those benefits have ended. The company also no longer requires customers to wear masks in all of its stores. 

Other companies are similarly curtailing sick time that they offered earlier in the pandemic. Kroger, the country’s biggest traditional grocery chain, is ending some benefits for unvaccinated salaried workers in an attempt to compel more of them to get the jab as COVID-19 cases rise again. Unvaccinated workers enrolled in Kroger’s health care plan will no longer be eligible to receive up to two weeks paid emergency leave if they become infected — a policy that was put into place last year when vaccines were unavailable.

Meanwhile, Walmart, the nation’s largest retailer, is slashing pandemic-related paid leave in half — from two weeks to one — after the Centers for Disease Control and Prevention reduced isolation requirements for people who don’t have symptoms after they test positive. 

Workers have received some relief from a growing number of states. In the last decade, 14 states and the District of Columbia have passed laws or ballot measures requiring employers to provide paid sick leave, according to the National Conference of State Legislatures.

On the federal front, however, the movement has stalled. Congress passed a law in the spring of 2020 requiring most employers to provide paid sick leave for employees with COVID-related illnesses. But the requirement expired on Dec. 31 of that same year. Congress later extended tax credits for employers who voluntarily provide paid sick leave, but the extension lapsed at the end of September, according to the U.S. Department of Labor. 

In November, the U.S. House passed a version of President Joe Biden’s Build Back Better plan that would require employers to provide 20 days of paid leave for employees who are sick or caring for a family member. But the fate of that bill is uncertain in the Senate. 

“We can’t do a patchwork sort of thing. It has to be holistic. It has to be meaningful,” said Josephine Kalipeni, executive director at Family Values @ Work, a national network of 27 state and local coalitions helping to advocate for such policies as paid sick days. 

The U.S. is one of only 11 countries worldwide without any federal mandate for paid sick leave, according to a 2020 study by the World Policy Analysis Center at the University of California, Los Angeles. 

On the flipside are small business owners like Dawn Crawley, CEO of House Cleaning Heroes, who can’t afford to pay workers when they are out sick. But Crawley is trying to help in other ways. She recently drove one cleaner who didn’t have a car to a nearby testing site. She later bought the cleaner some medicine, orange juice and oranges.

“If they are out, I try to give them money but at the same time my company has got to survive,” Crawley said. ″If the company goes under, no one has work.” 

Even when paid sick leave is available, workers aren’t always made aware of it. 

Ingrid Vilorio, who works at a Jack in the Box restaurant in Castro Valley, California, started feeling sick last March and soon tested positive for COVID. Vilorio alerted a supervisor, who didn’t tell her she was eligible for paid sick leave — as well as supplemental COVID leave — under California law. 

Vilorio said her doctor told her to take 15 days off, but she decided to take just 10 because she had bills to pay. Months later, a co-worker told Vilorio she was owed sick pay for the time she was off. Working through Fight for $15, a group that works to unionize fast food workers, Vilorio and her colleagues reported the restaurant to the county health department. Shortly after that, she was given back pay. 

But Vilorio, who speaks Spanish, said through a translator that problems persist. Workers are still getting sick, she said, and are often afraid to speak up. 

“Without our health, we can’t work,” she said. “We’re told that we’re front line workers, but we’re not treated like it.” 
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