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Ukraine recap: Ukraine and allies maintain optimism despite slow progress on the battlefield

A selection of the best of our coverage of the conflict from the past fortnight.

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At a press conference after talks with the Ukrainian president, Volodymyr Zelensky, this afternoon, Nato secretary general Jens Stoltenberg sounded like a man determined to take a “glass half full” attitude when he said that “every metre that Ukrainian forces regain is a metre that Russia loses”.

His statement, if a bit obvious, showed commendable optimism. Reports from the frontlines in Ukraine have been mixed over the past few months, with nothing like the lightning-fast territorial gains made by Ukraine in its late summer offensive last year, when it liberated vast swathes of territory occupied by Russia. Some of this was retaken only days after it had been declared part of the motherland by Vladimir Putin, who annexed four regions in the east and south on September 30 – only to hear that quite a lot of these regions were now Ukrainian soil once again.

This year, Kyiv’s planned counteroffensive was late coming, partly due to the slow delivery of western military aid. This gave Russia ample time to build imposing defensive fortifications. The sort of swift manoeuvring responsible for last year’s successful counterpunches have been nigh on impossible this year.


Since Vladimir Putin sent his war machine into Ukraine on February 24 2022, The Conversation has called upon some of the leading experts in international security, geopolitics and military tactics to help our readers understand the big issues. You can also subscribe to our fortnightly recap of expert analysis of the conflict in Ukraine.


It hasn’t helped that western commentators have continuously talked up Ukraine’s chances of a signifcant military success. Ukraine’s allies should manage their expectations, writes Frank Ledwidge, a lecturer in military strategy at the University of Portsmouth and former military intelligence officer.

ISW map showing the state of the conflict in Ukraine as at September 27 2023.
The state of the conflict in Ukraine as at September 27, 2023. Institute for the Study of War

Ledwidge points to mounting Ukrainian losses this year. The body count is significantly higher than last year, with more to come as Ukraine struggles to push Russian forces back literally metre by metre. Beware all the talk of “gamechanging weapons” and “breakthroughs”, he warns. This is going to be a long, bloody and bitter struggle, and there is no prospect of an end in sight.


Read more: Ukraine war: beware all the talk of 'breakthroughs' or 'gamechangers' – it's going to be a long, bloody and costly struggle


This time last year, we were talking about Ukrainian morale being sky high and things being grim in Russia, where Putin had been forced to announce the first mobilisation since 1941 to shore up Russia’s faltering military. Then came the battle for Bakhmut – a “meatgrinder”, as it has been described, for both sides, but principally for Russia’s Wagner group mercenaries, 20,000 of whom are estimated to have been killed in the bid to take what was, in reality, a strategically insignificant target.

Alexander Titov, who researches Russian history and foreign policy at Queen’s University Belfast, visits Russia regularly and says the mood on the Moscow street in May this year was at rock bottom. Bad news from the front was amplified by the likes of the now late and unlamented Wagner group boss, Yevgeny Prigozhin, whose viral videos regularly savaged Russian military commanders for their shambolic conduct. Meanwhile, there was trepidation as the Russian people awaited Ukraine’s counteroffensive.

Titov was back in Russia last month and reports a far more buoyant mood there, given the apparent failure of the counteroffensive to score any significant breakthroughs. Now, says Titov, it is Ukraine that is having to strengthen its conscription laws – and a recent scandal concerning people bribing recruitment officers has hit morale hard. Russia’s annual round of conscription, meanwhile, has delivered 300,000 fresh troops from its military reserves without Putin having to resort to what would have been a deeply unpopular second mobilisation.


Read more: Ukraine war: Putin avoids further mobilisation while Kyiv suffers manpower shortage


Diverse theatres of war

While things haven’t moved as quickly as Ukraine might have hoped on the battlefield, Kiev’s military has diversified its strategy by attacking Russian targets in the Black Sea region and Crimea. A missile strike on September 22 is reported to have killed 34 officers and wounded 105 others. Initially, the dead were said to include the commander of Russia’s Black Sea fleet, Admiral Viktor Sokolov – but this has been denied by the Kremlin, which has released an undated and unverified picture of Sokolov, apparently still alive.

Basil Germond, a maritime expert at the University of Lancaster, believes that this is akin to a second front in the war. Not only do these attacks undermine Russian morale, they have effectively denied it control of the Black Sea. This not only has implications for Russia’s grain blockade, but means Moscow will need to deploy troops away from the main defensive lines in the south and east of Ukraine.


Read more: Ukraine War: why the Black Sea is key to Kyiv’s counteroffensive


Meanwhile, one of the Kremlin’s reasons to be more cheerful is the recent deal it struck with North Korea, enabling it to address its shortage of ammunition. And according to Robert M. Dover – a professor of intelligence and security at the University of Hull – there are other reasons the west needs to be concerned about Moscow’s ever-closer relations with Pyongyang.

Once of these, Dover writes, is the fact that both countries have highly developed and sophisticated cyber-warfare capabilities. We’ve already seen how North Korea’s Lazarus group of hackers has been able to steal tens of millions of dollars in cryptocurrency, and the potential to wreak havoc by hacking into western military systems could be extremely dangerous.


Read more: Russian and North Korea artillery deal paves the way for dangerous cyberwar alliance


Conflict fatigue

As the war creeps towards its 600th day and the body count mounts on both sides, Kyiv’s allies in the west are also looking to their own depleted armouries, not to mention their national budgets. It has been calculated the US alone has spent or allocated US$113 billion (£92 billion) on supporting Ukraine, and the UK, the EU and Kyiv’s other allies have also strained their coffers. Meanwhile, the strain of increased energy and food prices has been heavy.

Stefan Wolff, from the University of Birmingham, and Tetyana Malyarenko, from the University of Odesa, have been watching for signs of combat fatigue among Ukraine’s allies, as well as anger from those countries in the global south who feel as if their concerns have been sidelined.

Zelensky’s visit to the US, where a growing number of Republicans are openly questioning Washington’s commitment to supporting Kyiv “whatever it takes”, as well as a recent row with Poland over Ukraine selling cheap grain to the disadvantage of its own farmers, are signs that there may be limits to the solidarity that was so evident last year.


Read more: Ukraine war: mixed signals among Kyiv's allies hint at growing conflict fatigue


Another country where support for Kyiv, once rock solid, looks to be crumbling is neighbouring Slovakia, which goes to the polls on Saturday. The election is too close to call, but one of the people most tipped to be able to form a coalition government is three-times former prime minister Robert Fico. Fico has said if successful, he will halt his country’s military aid to Ukraine.

As Veronika Poniscjakova, an expert in international relations and security at the University of Portsmouth, writes, it’s a campaign pledge which may mean Fico has to get into coalition with some extreme far-right partners. But with support for Ukraine falling among the Slovakian people, it’s certainly not a pledge that will lose him votes this weekend.


Read more: Ukraine war: Slovakia may be about to elect a government which plans to halt aid to Kyiv


Another war with Russian fingerprints

While Russia has been busy in Ukraine – or perhaps because Russia has been busy in Ukraine – hostilities have erupted once again in the troubled Nagorno-Karabakh region. Azerbaijan launched a massive assault on September 19 on the mainly ethnic Armenian enclave.

Map of Azerbaijan and Armenia showing Nagorno Karabakh.
Contested region: Azerbaijan and Armenia have fought two all-out wars over the contested territory of Nagorno-Karabakh. kamilewski/Shutterstock

Stefan Wolff recounts the history of this troubled region and tracks the motivations of Russia, once a staunch ally of Armenia. Moscow, he writes, may be preoccupied with its war in Ukraine, but Putin is no fan of Armenia’s prime minister, Nikol Pashinyan, so may not be dismayed at the mounting anti-government protests in Armenia’s capital, Yerevan, calling for him to go.


Read more: Nagorno-Karabakh: longest war in post-Soviet space flares yet again as Russia distracted in Ukraine


Writing as the flow of ethnic Armenian refugees across the Lachin corridor into Armenia grew steadily into a flood, Anna Matveeva – a visiting professor at King’s College London and expert in the post-Soviet space – took a broader look at the geopolitical implications of the 24-hour assault. Azerbaijan has its own enclave inside Armenia, Nakhichevan, which borders Turkey and Iran and is only accessible to Azerbaijan by air. Any peace deal over Nagorno-Karabakh, therefore, will have to involve Iran and Turkey as well as Russia, and could have consequences for the whole region.


Read more: Nagorno-Karabakh: crisis in the Caucasus could destabilise the whole of Eurasia


Ukraine Recap is available as a fortnightly email newsletter. Click here to get our recaps directly in your inbox.

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February Employment Situation

By Paul Gomme and Peter Rupert The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000…

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By Paul Gomme and Peter Rupert

The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000 average over the previous 12 months. The payroll data for January and December were revised down by a total of 167,000. The private sector added 223,000 new jobs, the largest gain since May of last year.

Temporary help services employment continues a steep decline after a sharp post-pandemic rise.

Average hours of work increased from 34.2 to 34.3. The increase, along with the 223,000 private employment increase led to a hefty increase in total hours of 5.6% at an annualized rate, also the largest increase since May of last year.

The establishment report, once again, beat “expectations;” the WSJ survey of economists was 198,000. Other than the downward revisions, mentioned above, another bit of negative news was a smallish increase in wage growth, from $34.52 to $34.57.

The household survey shows that the labor force increased 150,000, a drop in employment of 184,000 and an increase in the number of unemployed persons of 334,000. The labor force participation rate held steady at 62.5, the employment to population ratio decreased from 60.2 to 60.1 and the unemployment rate increased from 3.66 to 3.86. Remember that the unemployment rate is the number of unemployed relative to the labor force (the number employed plus the number unemployed). Consequently, the unemployment rate can go up if the number of unemployed rises holding fixed the labor force, or if the labor force shrinks holding the number unemployed unchanged. An increase in the unemployment rate is not necessarily a bad thing: it may reflect a strong labor market drawing “marginally attached” individuals from outside the labor force. Indeed, there was a 96,000 decline in those workers.

Earlier in the week, the BLS announced JOLTS (Job Openings and Labor Turnover Survey) data for January. There isn’t much to report here as the job openings changed little at 8.9 million, the number of hires and total separations were little changed at 5.7 million and 5.3 million, respectively.

As has been the case for the last couple of years, the number of job openings remains higher than the number of unemployed persons.

Also earlier in the week the BLS announced that productivity increased 3.2% in the 4th quarter with output rising 3.5% and hours of work rising 0.3%.

The bottom line is that the labor market continues its surprisingly (to some) strong performance, once again proving stronger than many had expected. This strength makes it difficult to justify any interest rate cuts soon, particularly given the recent inflation spike.

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Mortgage rates fall as labor market normalizes

Jobless claims show an expanding economy. We will only be in a recession once jobless claims exceed 323,000 on a four-week moving average.

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Everyone was waiting to see if this week’s jobs report would send mortgage rates higher, which is what happened last month. Instead, the 10-year yield had a muted response after the headline number beat estimates, but we have negative job revisions from previous months. The Federal Reserve’s fear of wage growth spiraling out of control hasn’t materialized for over two years now and the unemployment rate ticked up to 3.9%. For now, we can say the labor market isn’t tight anymore, but it’s also not breaking.

The key labor data line in this expansion is the weekly jobless claims report. Jobless claims show an expanding economy that has not lost jobs yet. We will only be in a recession once jobless claims exceed 323,000 on a four-week moving average.

From the Fed: In the week ended March 2, initial claims for unemployment insurance benefits were flat, at 217,000. The four-week moving average declined slightly by 750, to 212,250


Below is an explanation of how we got here with the labor market, which all started during COVID-19.

1. I wrote the COVID-19 recovery model on April 7, 2020, and retired it on Dec. 9, 2020. By that time, the upfront recovery phase was done, and I needed to model out when we would get the jobs lost back.

2. Early in the labor market recovery, when we saw weaker job reports, I doubled and tripled down on my assertion that job openings would get to 10 million in this recovery. Job openings rose as high as to 12 million and are currently over 9 million. Even with the massive miss on a job report in May 2021, I didn’t waver.

Currently, the jobs openings, quit percentage and hires data are below pre-COVID-19 levels, which means the labor market isn’t as tight as it once was, and this is why the employment cost index has been slowing data to move along the quits percentage.  

2-US_Job_Quits_Rate-1-2

3. I wrote that we should get back all the jobs lost to COVID-19 by September of 2022. At the time this would be a speedy labor market recovery, and it happened on schedule, too

Total employment data

4. This is the key one for right now: If COVID-19 hadn’t happened, we would have between 157 million and 159 million jobs today, which would have been in line with the job growth rate in February 2020. Today, we are at 157,808,000. This is important because job growth should be cooling down now. We are more in line with where the labor market should be when averaging 140K-165K monthly. So for now, the fact that we aren’t trending between 140K-165K means we still have a bit more recovery kick left before we get down to those levels. 




From BLS: Total nonfarm payroll employment rose by 275,000 in February, and the unemployment rate increased to 3.9 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in health care, in government, in food services and drinking places, in social assistance, and in transportation and warehousing.

Here are the jobs that were created and lost in the previous month:

IMG_5092

In this jobs report, the unemployment rate for education levels looks like this:

  • Less than a high school diploma: 6.1%
  • High school graduate and no college: 4.2%
  • Some college or associate degree: 3.1%
  • Bachelor’s degree or higher: 2.2%
IMG_5093_320f22

Today’s report has continued the trend of the labor data beating my expectations, only because I am looking for the jobs data to slow down to a level of 140K-165K, which hasn’t happened yet. I wouldn’t categorize the labor market as being tight anymore because of the quits ratio and the hires data in the job openings report. This also shows itself in the employment cost index as well. These are key data lines for the Fed and the reason we are going to see three rate cuts this year.

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Inside The Most Ridiculous Jobs Report In History: Record 1.2 Million Immigrant Jobs Added In One Month

Inside The Most Ridiculous Jobs Report In History: Record 1.2 Million Immigrant Jobs Added In One Month

Last month we though that the January…

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Inside The Most Ridiculous Jobs Report In History: Record 1.2 Million Immigrant Jobs Added In One Month

Last month we though that the January jobs report was the "most ridiculous in recent history" but, boy, were we wrong because this morning the Biden department of goalseeked propaganda (aka BLS) published the February jobs report, and holy crap was that something else. Even Goebbels would blush. 

What happened? Let's take a closer look.

On the surface, it was (almost) another blockbuster jobs report, certainly one which nobody expected, or rather just one bank out of 76 expected. Starting at the top, the BLS reported that in February the US unexpectedly added 275K jobs, with just one research analyst (from Dai-Ichi Research) expecting a higher number.

Some context: after last month's record 4-sigma beat, today's print was "only" 3 sigma higher than estimates. Needless to say, two multiple sigma beats in a row used to only happen in the USSR... and now in the US, apparently.

Before we go any further, a quick note on what last month we said was "the most ridiculous jobs report in recent history": it appears the BLS read our comments and decided to stop beclowing itself. It did that by slashing last month's ridiculous print by over a third, and revising what was originally reported as a massive 353K beat to just 229K,  a 124K revision, which was the biggest one-month negative revision in two years!

Of course, that does not mean that this month's jobs print won't be revised lower: it will be, and not just that month but every other month until the November election because that's the only tool left in the Biden admin's box: pretend the economic and jobs are strong, then revise them sharply lower the next month, something we pointed out first last summer and which has not failed to disappoint once.

To be fair, not every aspect of the jobs report was stellar (after all, the BLS had to give it some vague credibility). Take the unemployment rate, after flatlining between 3.4% and 3.8% for two years - and thus denying expectations from Sahm's Rule that a recession may have already started - in February the unemployment rate unexpectedly jumped to 3.9%, the highest since February 2022 (with Black unemployment spiking by 0.3% to 5.6%, an indicator which the Biden admin will quickly slam as widespread economic racism or something).

And then there were average hourly earnings, which after surging 0.6% MoM in January (since revised to 0.5%) and spooking markets that wage growth is so hot, the Fed will have no choice but to delay cuts, in February the number tumbled to just 0.1%, the lowest in two years...

... for one simple reason: last month's average wage surge had nothing to do with actual wages, and everything to do with the BLS estimate of hours worked (which is the denominator in the average wage calculation) which last month tumbled to just 34.1 (we were led to believe) the lowest since the covid pandemic...

... but has since been revised higher while the February print rose even more, to 34.3, hence why the latest average wage data was once again a product not of wages going up, but of how long Americans worked in any weekly period, in this case higher from 34.1 to 34.3, an increase which has a major impact on the average calculation.

While the above data points were examples of some latent weakness in the latest report, perhaps meant to give it a sheen of veracity, it was everything else in the report that was a problem starting with the BLS's latest choice of seasonal adjustments (after last month's wholesale revision), which have gone from merely laughable to full clownshow, as the following comparison between the monthly change in BLS and ADP payrolls shows. The trend is clear: the Biden admin numbers are now clearly rising even as the impartial ADP (which directly logs employment numbers at the company level and is far more accurate), shows an accelerating slowdown.

But it's more than just the Biden admin hanging its "success" on seasonal adjustments: when one digs deeper inside the jobs report, all sorts of ugly things emerge... such as the growing unprecedented divergence between the Establishment (payrolls) survey and much more accurate Household (actual employment) survey. To wit, while in January the BLS claims 275K payrolls were added, the Household survey found that the number of actually employed workers dropped for the third straight month (and 4 in the past 5), this time by 184K (from 161.152K to 160.968K).

This means that while the Payrolls series hits new all time highs every month since December 2020 (when according to the BLS the US had its last month of payrolls losses), the level of Employment has not budged in the past year. Worse, as shown in the chart below, such a gaping divergence has opened between the two series in the past 4 years, that the number of Employed workers would need to soar by 9 million (!) to catch up to what Payrolls claims is the employment situation.

There's more: shifting from a quantitative to a qualitative assessment, reveals just how ugly the composition of "new jobs" has been. Consider this: the BLS reports that in February 2024, the US had 132.9 million full-time jobs and 27.9 million part-time jobs. Well, that's great... until you look back one year and find that in February 2023 the US had 133.2 million full-time jobs, or more than it does one year later! And yes, all the job growth since then has been in part-time jobs, which have increased by 921K since February 2023 (from 27.020 million to 27.941 million).

Here is a summary of the labor composition in the past year: all the new jobs have been part-time jobs!

But wait there's even more, because now that the primary season is over and we enter the heart of election season and political talking points will be thrown around left and right, especially in the context of the immigration crisis created intentionally by the Biden administration which is hoping to import millions of new Democratic voters (maybe the US can hold the presidential election in Honduras or Guatemala, after all it is their citizens that will be illegally casting the key votes in November), what we find is that in February, the number of native-born workers tumbled again, sliding by a massive 560K to just 129.807 million. Add to this the December data, and we get a near-record 2.4 million plunge in native-born workers in just the past 3 months (only the covid crash was worse)!

The offset? A record 1.2 million foreign-born (read immigrants, both legal and illegal but mostly illegal) workers added in February!

Said otherwise, not only has all job creation in the past 6 years has been exclusively for foreign-born workers...

Source: St Louis Fed FRED Native Born and Foreign Born

... but there has been zero job-creation for native born workers since June 2018!

This is a huge issue - especially at a time of an illegal alien flood at the southwest border...

... and is about to become a huge political scandal, because once the inevitable recession finally hits, there will be millions of furious unemployed Americans demanding a more accurate explanation for what happened - i.e., the illegal immigration floodgates that were opened by the Biden admin.

Which is also why Biden's handlers will do everything in their power to insure there is no official recession before November... and why after the election is over, all economic hell will finally break loose. Until then, however, expect the jobs numbers to get even more ridiculous.

Tyler Durden Fri, 03/08/2024 - 13:30

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