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  • Think landing a job is hard? Try having ‘DEI’ on your resume

    Think landing a job is hard? Try having ‘DEI’ on your resume

    After seven rounds of grueling interviews, an offer for a recruiting job seemed within reach for David Daniels IV. Until a reference check that Daniels learned had involved wary discussions of his background in diversity, equity, and inclusion. The offer never came.

    Having DEI experience on a resume can feel like a scarlet letter in an already difficult job market, said Daniels, who lives in New York and held roles at companies including yoga wear retailer Lululemon Athletica Inc. “There’s this sense of, if you did DEI, we don’t want to hire you,” he said. For Daniels and others like him, working in diversity made them hot commodities in corporate America just a few years ago. Now it’s a liability. Conservatives have lambasted diversity work as exclusionary, while President Donald Trump’s ire against what he has termed “illegal DEI” has spurred a retrenchment in many companies. Fearing lawsuits and the loss of government contracts, businesses quickly pivoted, downsizing or dismantling their diversity groups.

    That left DEI professionals who lost their jobs stranded, competing for roles in a tight job market. Among the jobless population in the broader economy, about a quarter have been unemployed for a half-year or longer — the highest share since the mid-2010s, excluding the pandemic-era years. DEI specialists say they’re getting less interest from recruiters than they did several years ago and fewer interviews from companies. To bolster their chances, professionals have stripped the three letters from resumes and sought roles in adjacent departments such as in human resources, public affairs, and marketing. Others have weighed changing careers.

    One job hunter is Josue Mendez in New York, who used to work in the diversity group at Ogilvy, an advertising agency owned by WPP PLC. In June, weeks after his team won an industry award for a leadership program for its Black male employees, he was among those let go. Since then, Mendez spends his days scouring job listings and attending job fairs.

    A conversation with a recruiter was going well, he said, until Mendez mentioned his experience in diversity. “It suddenly went very cold,” Mendez recalled. “The second they see any previous work specifically in DEI, they want to stay away.” The call ended ahead of schedule. The recruiter later told Daniels he was out of the running for the job.

    A handful of large corporations remain publicly committed to workplace diversity. Delta Air Lines Inc., Southwest Airlines Co. and Coca-Cola Co. have kept the DEI label on their websites. And others are now emphasizing veterans and disabled employees.

    But there’s been a wave of reversals in the past year. Amazon.com Inc. halted some of its programs, McDonald’s Corp. stopped setting “representation goals” and Goldman Sachs Group Inc. ended a policy of only taking some companies public if they had diverse board members. Corporate fears around legal risks earlier this year overshadowed everything else, said Tynesia Boyea-Robinson, whose firm CapEQ advises companies on diversity and other social issues. “A lot of people basically looked to their legal counsel and asked: What is the way we can protect ourselves from being sued?” Job ads reflect the changed landscape. New postings for diversity roles have approximately halved this year to about 1,500 from 2019 levels, according to Revelio Labs, a firm that analyzes workforces. Postings had almost quadrupled to about 10,000 during the height of the DEI boom in 2022 compared with 2019.

    Since losing her position at a firm advising clients on their diversity efforts late last year, Victoria Person in New Orleans has been attending networking events held by the local Chamber of Commerce to help find clients for her new consulting business while she searches for a job. The moment Person mentions her 15-year career working in diversity, people give an uncomfortable laugh, change the subject or look over her shoulder to find someone else to talk to, she said. “I see and feel people reel back,” Person said. “There’s a lot of fear around this, people don’t want to be associated with it.” Still, in spite of the current malaise, Person said she hopes that diversity programs will reemerge stronger and more inclusive, serving all demographics rather than specific groups.

    Marie — who didn’t want her full named published because she fears online attacks from DEI critics — lost her role as a diversity manager, making $150,000, following Trump’s election win. Her job hunt initially yielded call backs and interviews. Now, responses have all but disappeared. Marie said she noticed some companies had posted the same diversity role multiple times over the course of months only to pull them later on. And in one interview, a chief diversity officer told her that the executive team wasn’t fully sold on workplace diversity, even though the company had posted a role. Given the scarcity of roles in diversity, Marie said she’s considering leaving the field. But returning to public education, her previous field, would mean risking cutting her income in half. In the meantime, she’s joined a group dedicated to professionals laid off from their diversity jobs. Its founder, Michael Streffery, who was let go from his job as director of DEI at Realtor.com earlier this year, says the group’s members have skills that are applicable to many other positions. “They’re systems thinkers, culture shapers, and crisis navigators,” he said.

    Before leaving his job earlier this year, Carlos Ayala experienced a slide. Once a chief diversity and inclusion officer at an energy company, his title was changed and his role downgraded. He stayed at the company for several months to help “de-risk” the department he once ran. That meant watering down or removing diversity policies to help reduce legal risks.

    Ayala quickly experienced firsthand the liability of having worked in DEI. He said he had applied for a role overseeing diversity efforts at a company that appeared, at least publicly, to be sticking with the strategy. Midway through his interviews, Ayala got an email from the recruiter who said the business was “reframing the role’’ and shifting it to a generalist human resources position. “I thought, God, that’s disappointing, they’ve been stringing me along,” said Ayala, whose based in the Chicago area. Weeks later, he’s still waiting to hear whether he got the job. Back in New York, Daniels is continuing his job search. He’s picked up some consulting work including a client in the United Kingdom, where the political backlash to diversity is less severe. He said he’s got more interviews after removing the DEI label from his online profile. In some interviews, Daniels said he’s repeatedly had to reassure hiring managers that he’s still comfortable working for a company even if it’s not focused on diversity. Despite the DEI retrenchment, Daniels is taking the long view. There’s an ebb and flow when it comes to social justice issues, he said. “America has always been this way.”

  • Amazon delivery contractors are bailing amid rising costs, meager profit

    Amazon delivery contractors are bailing amid rising costs, meager profit

    In 2022, Jake Clay started an Amazon delivery firm in Odessa, Texas, after hearing about the company’s program from a friend. He sank $75,000 into the business and earned more than $200,000 in the first year. An Air Force veteran, Clay, 50, felt like he’d joined an elite unit.

    The feeling didn’t last. Before long, rising insurance and other costs began eating into his profit. One of Clay’s drivers was badly bitten by a dog and went on workers’ compensation for a year, while his annual vehicle insurance rates soared fivefold to almost $500,000. Clay mulled laying off all his managers and running the business on his own, figuring he would clear about $75,000. In the end, he decided it wasn’t worth it. He quit last month.

    “I earned significantly less as I got more seasoned, which is the most upside-down business I’ve ever heard of,” Clay said. “Amazon wants a bunch of pawns and they keep a bunch of extra pawns on the bench to replace anyone who leaves.”

    Clay said he rejected an offer to sign an exit contract with Amazon that would have paid him $75,000, but ban him from speaking publicly about the program.

    Amazon.com Inc. launched its Delivery Service Partner program in 2018, offering aspiring entrepreneurs an opportunity to run their own businesses. The world’s biggest online retailer pledged to use its negotiating clout to help them lease vans and hire drivers. All they needed, the company said at the time, was can-do spirit and as little as $10,000 up front to earn as much as $300,000 (now $400,000) in yearly profit.

    Today, some who answered the call fear the best days are behind them. While many prospered during the pandemic-era e-commerce boom, they say their profits are dwindling owing to rising costs for insurance and vehicle maintenance even as Amazon tightens performance metrics that determine how much they earn. Like Clay, several delivery owners told Bloomberg that making money has become so hard they’re getting out — a wrenching decision with the economy slowing and unemployment rising.

    Amid the mounting discontent, Amazon recently announced a 20% hike to 12 cents for each package the firms deliver. It was the first such increase since the company launched the Delivery Service Partner program and an acknowledgment that inflation has driven up costs. But many contract delivery firms said the gesture was too little, too late. And because it doesn’t take effect until January, some saw it as a carrot to keep them working through the holidays when Amazon needs them most.

    Still, they recognize they have little leverage because Amazon can simply replace them. Last month, during the annual Ignite conference for delivery service partners, the company touted its “Road to Ownership” program, which is designed to persuade drivers to start their own delivery companies. Many owners saw the presentation as a reminder that there are plenty of people eager to step in. And a number of newbies attended the Las Vegas conference, looking for tips on how to run their businesses.

    Bloomberg interviewed 23 delivery partners who operate in 11 states around the U.S. Five said they quit the program because they were making less money each year, and several others are contemplating getting out. Four owners said they were happy with the program and that their income was growing. In online forums, delivery contractors have debated how to negotiate larger exit packages with Amazon and tried to establish how many have already quit. One chat room was set up specifically for contractors thinking of shuttering their firms and features more than 100 mostly anonymous members.

    Most of the delivery partners interviewed, including those who quit and one who liked the program, spoke on condition of anonymity because they feared repercussions from Amazon.

    “The anecdotes shared by a small number of DSPs don’t reflect the experience of the vast majority,” Amazon spokesperson Dannea DeLisser said in an emailed statement. “Interest in the program continues to grow as entrepreneurs recognize the opportunity to build their own businesses with Amazon’s support, and we’re proud of the thousands of DSPs that are doing well and making a positive impact in their communities.” Amazon has invested $16.7 billion in the program, which currently encompasses more than 4,400 firms — most of them in the U.S.

    Inflationary pressure

    Contract delivery firms have tangled with Amazon for years, often over what they consider unreasonable delivery targets that are monitored by artificial intelligence. Those concerns remain, but business owners trace their current woes to the inflationary environment and the company’s unwillingness to provide sufficient support at a time when Amazon is focused on cutting costs and boosting profits.

    Tension between the company and its delivery businesses flared earlier this year when the company passed along big bills to repair aging delivery vans. Some contractors said they were getting hit with repair bills of up to $20,000 per vehicle that they couldn’t afford to pay. The delivery firms used an app called Pave to estimate damages based on photos of the vehicle, but Amazon instituted a more rigorous inspection process this year that resulted in repair bills as much as 10 times higher than the app estimate.

    With delivery contractors balking, Amazon in September backpedaled and told them it would cover 20% of van repairs estimated in the Pave app going back to April and that it would send out revised invoices this month.

    The delivery firms are also grappling with the rising cost of insurance. Typically when they start out, insurance rates are reasonable. But the longer they are in business, the more chance there is for accidents, dog bites, and other issues, which in turn push up the costs of covering their operation.

    A person checks an address before making an Amazon delivery in Chicago in January 2025.

    One owner who started an Amazon delivery business in 2019 blames skyrocketing premiums for slashing his annual profit from $400,000 to $150,000. He mostly employs young male drivers, whom insurers consider high-risk. His premiums soared after one driver was involved in a crash with serious injuries. When the case settled out of court for $1.4 million, the owner realized the risk wasn’t worth the reward.

    He went to the Amazon delivery station one Saturday evening to tell them he’d cease operating the next day, leaving the company scrambling to reassign thousands of packages to other firms. “They weren’t happy,” he said.

    Another delivery contractor who started when Amazon launched the program in 2018 said his yearly profits have been trending downward from about $200,000 to $160,000, which he expected to continue. His problems started when Amazon switched 10-hour delivery routes to begin later in the day at 11 a.m., meaning drivers made more deliveries in the dark when it’s harder to see street signs, addresses, and potential hazards like muddy puddles on dirt roads. That drove up his costs since he had to pay drivers overtime to complete routes and hire tow trucks to free vans stuck in mud. Amazon never increased his payments to reflect the increased costs associated with later deliveries.

    Amazon said it conducted a financial performance of 648 delivery contractors last year and found that about 80% of them generated annual profits of at least $100,000. The company said their profits, on average, increased each year. The average business has been operating for five years and fewer than 10% of them quit the program, according to Amazon.

    Some owners accept that running an Amazon delivery firm isn’t necessarily a long-term bet and prepare by diversifying. One delivery contractor in the Midwest started a plumbing franchise and encouraged his hardest-working delivery drivers to work there and learn a trade. Fred Vernon, 36, said starting an Amazon delivery business in 2019 in Houston has been life-changing. It’s hard work and he emphasizes driver safety to keep his insurance costs in line. Meanwhile, Vernon is using his proceeds to pay for law school.

    “We’re doing very well and I’m grateful for the opportunity to pursue other goals,” he said.

    Amazon delivery contractors quickly learn that bailing is no panacea. Unlike many small business owners, they have no hard assets to sell. They lease the vans, and the packages are stored in Amazon facilities. They could try to sell the business but it’s tied to a one-year contract with Amazon, which has veto power over any prospective buyer. So they can either quit with nothing or keep limping along with the knowledge that they could be replaced once the contract expires — perhaps with someone like Shannon Joseph.

    A former driver, Joseph launched her own delivery business in Austin in 2022. She says her experience hauling packages has helped build rapport with her 92 employees. Joseph has heard the complaints from other delivery firms, but is confident she’ll keep making money and growing by outperforming the pack.

    “I want to be one of the delivery partners who makes it for 10 years,” she said.

  • Social Security recipients get a 2.8% cost-of-living boost in 2026, average of $56 per month

    Social Security recipients get a 2.8% cost-of-living boost in 2026, average of $56 per month

    WASHINGTON — The Social Security Administration’s annual cost-of-living adjustment will go up by 2.8% in 2026, translating to an average increase of more than $56 for retirees every month, agency officials said Friday.

    The benefits increase for nearly 71 million Social Security recipients will go into effect beginning in January. And increased payments to nearly 7.5 million people receiving Supplemental Security Income will begin on Dec. 31.

    Friday’s announcement was meant to be made last week but was delayed because of the federal government shutdown.

    The cost-of-living adjustment, or COLA, for retirees and disabled beneficiaries is financed by payroll taxes collected from workers and their employers, up to a certain annual salary, which is slated to increase to $184,500 in 2026, from $176,100 in 2025.

    Recipients received a 2.5% cost-of-living boost in 2025 and a 3.2% increase in their benefits in 2024, after a historically large 8.7% benefit increase in 2023, brought on by record 40-year-high inflation.

    The smaller increase for 2026 reflects moderating inflation. The agency will notify recipients of their new benefit amount by mail in early December.

    Some seniors say the increase isn’t enough

    Some seniors say the cost-of-living adjustment won’t help much in their ability to pay for their daily expenses. Linda Deas, an 80-year-old Florence, South Carolina, resident said “it does not match the affordability crisis we are having right now.”

    Deas, a retired information systems network operations specialist, moved to South Carolina from New York in 2022 to be closer to family. She says her monthly rent has increased by $400 in the past two years.

    She listed other items that have become more expensive for her in the past two years, including auto insurance and food. “If you have been into the supermarkets lately you will notice how prices are going up, not down,” she said.

    Deas is not alone in feeling that costs are getting out of control. Polling from the AARP shows that older Americans are increasingly struggling to keep up in today’s economy. The poll states that only 22% of Americans over age 50 agree that a COLA of right around 3% for Social Security recipients is enough to keep up with rising prices, while 77% disagree. That sentiment is consistent across political party affiliations, according to the AARP.

    In Deas’ case, the MIT Living Wage Calculator estimates that an adult living alone in Florence, South Carolina, would spend per year $10,184 for housing, $3,053 for medical expenses and $3,839 for food.

    AARP CEO Myechia Minter-Jordan said the COLA is “a lifeline of independence and dignity, for tens of millions of older Americans,” but even with the annual inflation-gauged boost in income, “older adults still face challenges covering basic expenses.”

    Social Security Administration Commissioner Frank Bisignano said in a statement Friday that the annual cost-of-living adjustment “is one way we are working to make sure benefits reflect today’s economic realities and continue to provide a foundation of security.”

    Emerson Sprick, the Bipartisan Policy Center’s director of retirement and labor policy, said in a statement that cost-of-living increases “can’t solve all the financial challenges households face or all the shortcomings of the program.”

    The agency has been in turmoil in recent months

    The latest COLA announcement comes as the Social Security Administration has been navigating almost a year of turmoil, including the termination of thousands of workers as part of the Trump administration’s efforts to shrink the size of the federal workforce. Trump administration officials have also made statements they later walked back that raised concerns about the future of the program.

    Treasury Secretary Scott Bessent said in July that the Republican administration was committed to protecting Social Security hours after he said in an interview that a new children’s savings program President Donald Trump signed into law “is a back door for privatizing Social Security.”

    And in September, Bisignano had to walk back comments that the agency is considering raising the retirement age to shore up Social Security. “Raising the retirement age is not under consideration at this time by the Administration,” Bisignano said at the time in an e-mailed statement to The Associated Press.

    “I think everything’s being considered, will be considered,” Bisignano said in the statement when asked whether raising the retirement age was a possibility to maintain the old age program’s solvency.

    Efforts to boost benefits for seniors

    In addition, the Social Security Administration faces a looming bankruptcy date if it is not addressed by Congress. The June 2025 Social Security and Medicare trustees’ report states that Social Security’s trust funds, which cover old age and disability recipients, will be unable to pay full benefits beginning in 2034. Then, Social Security would only be able to pay 81% of benefits.

    Social Security benefits were last reformed roughly 40 years ago, when the federal government raised the eligibility age for the program from 65 to 67.

    While a permanent solution for shoring up the benefits program has not been passed into law, both the Trump and Biden administrations have recently signed into law new benefits for retirees, which are expected to boost their finances.

    The Trump administration, as part of Republicans’ tax and spending bill, gave tax relief to many seniors through a temporary tax deduction for seniors aged 65 and over, which applies to all income — not just Social Security. However, those who won’t be able to claim the deduction include the lowest-income seniors who already don’t pay taxes on Social Security, those who choose to claim their benefits before they reach age 65 and those above a defined income threshold.

    Additionally, former President Joe Biden in 2024 repealed two federal policies — the Windfall Elimination Provision and the Government Pension Offset — that previously limited Social Security payouts for roughly 2.8 million people, including largely former public workers.

    These measures have accelerated the insolvency of the old-age benefits program.

    Sprick at the Bipartisan Policy Center said “there have been longstanding questions about whether benefits are adequate for low-income seniors, which should inspire urgency among policymakers to work toward broader reforms instead of ignoring Social Security’s long-term solvency.”

  • What is the Shutdown Fairness Act 2025?

    The Shutdown Fairness Act 2025 is a GOP-backed bill that would pay federal employees who are working during the government shutdown, with Republicans continuing to put pressure on Democrats to reopen the government.

    Senate Majority Leader John Thune earlier this week announced the measure, Senate Bill 3012, as hundreds of thousands of federal workers will miss their paychecks, while the military, while paid Oct. 15, face missing their Oct. 31 paychecks. This as families face food security issues, with SNAP benefits stretched thin.

    Senate Bill 3012, known as the S. 3012, is a measure that would pay federal employees who are working through the shutdown, including members of the military and contractors who support “excepted” work.

    Majority Whip Sen. John Barrasso, a Wyoming Republican, said live on the Senate floor on Thursday, Oct. 23, that there was “no single argument against passing it immediately” since it would pay the troops, Coast Guard, Border Patrol, members of ICE, air traffic controllers, TSA agents at airports, and Capitol police officers in Washington, D.C.

    The bill would provide “such sums as are necessary” to pay non-furloughed workers; however, Democrats have argued that all federal workers, including those on furlough, should be paid.

    The bill, sponsored by GOP Sen. Ron Johnson of Wisconsin, applies only to “excepted” federal employees whose work is considered essential during a period of prolapsed funding. Those employees continue to work but cannot get back pay until the shutdown is over. Nonessential workers are placed on furlough, and also get back pay.

    The bill was first proposed by Senate Majority Leader John Thune this week. The legislation requires the backing of Democrats, but some have warned the bill would give power to President Donald Trump.

    “We know what will happen — any agencies that he doesn’t like won’t get paid,” Sen. Chris Murphy, a Connecticut Democrat, told reporters earlier this week, per CBS News.

  • Women hold 9 CEO positions at Philadelphia’s top 100 public companies

    Women hold 9 CEO positions at Philadelphia’s top 100 public companies

    Women filled more of the top leadership positions at large public companies in the Philadelphia area in fiscal year 2024 than they did the previous year. But workplace parity remains to be achieved.

    “We’re showing measurable but slow progress,” said Meghan Pierce, president and CEO of the Forum of Executive Women, which this week released its annual report measuring women in CEO positions and on corporate boards. “As we look at this data year to year, we are definitely discouraged by how slow progress is.”

    The Forum counted women in leadership positions in fiscal 2024 across the region’s largest 100 public companies by revenue, using data from U.S. Security and Exchange Commission filings.

    Pierce says the forum is using its platform to highlight some factors holding women back in the workforce, such as the lack of paid family leave in Pennsylvania and lack of pay transparency. These are “structural issues that might prevent someone from getting to where they deserve to be,” she said.

    Who are the region’s female CEOs?

    Still, the number of women CEOs in the Philadelphia area more than doubled last year, from four in 2023 to nine last year.

    Three were on the list last year:

    • Ellen Cooper at Lincoln National Corp.
    • Denise Dignam at Chemours Co.
    • Susan Hardwick of American Water Works Co.

    Hardwick, however, recently retired and was succeeded by John Griffith.

    The newcomers are:

    • Lori Koch of DuPont de Nemours Inc.
    • Winnie Park of Five Below
    • Mojdeh Poul of Integra LifeSciences Holdings Corp.
    • Suzanne Foster of AdaptHealth Corp.
    • Natalia Shuman of Mistras Group Inc.,
    • Nicholle Taylor of Artesian Resources Corp.

    Carole Ben-Maimon, of Larimar Therapeutics, was included on the list last year and remains CEO of that company, but Larimar is no longer among the top 100 local public companies by revenue.

    Getting more women in to CEO roles, Pierce said, will require “making long-term investments in women and putting them in the pipeline for those top jobs.”

    More female board members

    On the boards of 100 Philly-area businesses in 2024, women occupied 15 more seats than the previous year, bringing women’s representation on boards up to 30%.

    Despite that progress, six companies still have no women on their boards, an increase from three last year. That number has not increased since 2013.

    “We have to call that out,” said Pierce. “A company with no women on their boards is troubling for us.”

    In 2013, 35 of the 100 companies didn’t have women on their boards.

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    A “troubling” decline in DEI reporting

    This year’s report noted that fewer area companies had chosen to report their DEI policies, racial and ethnic makeup of their boards, and/or of their workforce. In 2023, 87% of the region’s top 100 companies had shared at least some of this information, but that dropped to 62% a year later.

    Pierce said this is “troubling.” She said she expects that number to continue dropping amid President Donald Trump’s curtailing of DEI efforts, “just given the environment that we’re operating in — but maybe I’ll be pleasantly surprised.”

    The Trump administration has called for the end of federal DEI programs, and offered universities greater access to federal funding if they agreed to make certain changes, including removing gender and ethnicity from admissions decisions.

    A recent Gallup and Bentley University report also indicates that fewer people believe DEI should be a top business priority. This year, 69% of people thought DEI was “extremely or somewhat important for businesses to promote,” down from 74% in 2024, the report said.

    Editor’s note: A previous version of this story contained a percentage that could not be verified. It has been removed.

  • Sixers and Comcast hope to open up a block of East Market for ‘pop-ups’ during the World Cup and America 250

    Sixers and Comcast hope to open up a block of East Market for ‘pop-ups’ during the World Cup and America 250

    The companies that own the 76ers and Flyers earlier this year made a high-profile commitment to help transform the long-distressed East Market Street corridor.

    The first development to come out of that promise? Perhaps a mini-soccer pitch. Or a pop-up beer garden.

    The teams recently hired a contractor to demolish buildings they own on the 1000-block of the beleaguered thoroughfare with the goal of eventually erecting a major development that could help revitalize the area.

    But, until then, City Councilmember Mark Squilla said Friday the teams and city leaders hope to “activate” the lots slated for demolition with “pop-up” opportunities related to the FIFA World Cup and the nation’s 250th birthday being hosted in Philadelphia next summer.

    “The goal was: If they could demolish it by then and fill it, we could program an open space on 1000 Market Street,” Squilla said, tossing out the soccer pitch and beer garden ideas as examples. “This will give us an opportunity to try to do something special for 2026 while we’re doing a longterm plan for East Market.”

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    Jacklin Rhoads, a spokesperson for the teams’ development venture, said Friday the demolitions come as the partners “continue to make progress towards future development on East Market Street.”

    “The demolition of these vacant storefronts improves the streetscape and will give us the ability to work with community partners to activate the site ahead of groundbreaking,” Rhoads said. “We are committed to working with the City to help jump start the revitalization of Market East and this is the next step in that process.”

    The teams’ commitment to work together as Market East boosters stems from the controversial and since-abandoned proposal by the 76ers’ owner, Harris Blitzer Sports & Entertainment, to build an arena in Center City.

    The basketball team had pitched that proposal as an opportunity to rejuvenate the blocks east of City Hall. But when the plan crumbled in January — in no small part due to opposition from the Flyers’ owner, Comcast Spectacor — the teams vowed to work as partners both on a new arena in the South Philadelphia stadium complex as well as on a joint development venture for East Market Street.

    The Sixers and Flyers recently hired a joint venture of New York-based Turner Construction Co. and Indiana-based AECOM Hunt to manage construction of the arena, which will be home to the city’s NBA and NHL teams and its planned, as-yet-unnamed WNBA team.

    And the teams have hired Philadelphia- and Norristown-based contractor Pride Enterprises Inc. to demolish the vacant storefronts they own on East Market Street in Center City.

    Tearing down and popping up

    Demolitions are so far only planned for part of the 1000-block, across the street from where the Sixers had previously envisioned building their new home.

    HBSE and Comcast Spectacor — a subsidiary of the Philadelphia-based entertainment, cable television, and internet giant — bought properties on East Market Street in a series of transactions totaling $56 million earlier this year. The buildings were formerly home to Rite Aid, Reebok, and other stores totaling 112,000 square feet.

    The properties currently slated for demolition are 1000-1024 E. Market St. That includes most of the former stores on the block’s south side. The teams also own 920-938 E. Market St., the western half of the adjacent block, but those properties are not currently planned for tear-downs.

    The teams’ plan to flatten the stores, making the space temporarily available for events related to the FIFA World Cup or the nation’s 250th anniversary next summer.

    Squilla said an East Market task force will be announced soon, and that group would have input on what happens at the site assuming it is demolished in time for the 2026 celebrations.

    After that, the teams will redevelop the properties, although plans aren’t finalized, Rhoads said. The teams declined to provide any details about the redevelopment project’s ambitions or scale.

    The city Department of Planning & Development did not respond to a request on the status of the development plans.

    The neighborhoods around East Market, a thriving department store district that has languished for decades, have recently begun to rebound with the development of hundreds of apartments and neighborhood retail to serve new residents.

    Stadium construction vets tapped for South Philly arena

    The new arena in South Philly will replace the Flyers and Sixers’ current home at the recently renamed Xfinity Mobile Arena, which was known as the Wells Fargo Center until this year.

    Currently, Comcast Spectacor owns the building, and the 76ers pay rent. For the next facility, the teams will be joint owners.

    The teams have tapped an outfit with ample experience in stadium and arena construction for the job. Over the past 20 years, Turner-AECOM Hunt joint ventures have built the Barclays Center in Brooklyn, the SoFi Stadium and Intuit Dome in Los Angeles, State Farm Arena in Atlanta, and Nissan Stadium in Nashville.

    In Philadelphia, they built the Eagles’ Lincoln Financial Field, the FMC Tower, the One uCity Square office building in University City, and the Chubb Center in Center City, the insurance company offices set to open next year.

    For the South Philly project, the partners, doing business as PACT+, have brought on Philadelphia-based union contractors to do much of the work, including Black-owned general construction company Perryman Construction, construction manager Hunter Roberts Construction Group, and Camfred Construction.

    The teams haven’t said how large the arena will be. HBSE and Comcast Spectacor in June hired a design team at the firm Populous and Moody Nolan.

    David Adelman, the Philadelphia student housing developer and investor who chairs the teams’ development venture, in a statement promised “the most technologically advanced and fan-focused sports and entertainment venue.”

    Adelman earlier said the new arena will open in 2030, and the WNBA team will play its first game there.

    The project “is a chance to build something that becomes part of Philadelphia’s fabric,” said Turner’s Philadelphia-based vice president, Dave Kaminski, in a statement.

    Jason Kopp of AECOM Hunt promised “cutting-edge amenities for athletes, performers, and visitors.”

    Although the teams are making moves related to the new arena, they don’t yet appear to have shared much of their plan with City Council President Kenyatta Johnson, whose 2nd District includes the South Philadelphia stadium complex.

    Building an arena at that location will likely require involve fewer legislative and bureaucratic hurdles than the 76ers’ abandoned Center City proposal. But in Philadelphia, Council members hold enormous sway over their districts, and the teams will likely need Johnson’s support if they want a smooth approval process.

    Johnson was asked Thursday what the teams need to do to meet their proposed timeline for opening the arena in 2030.

    “I have no idea,” Johnson told reporters. “That’s not even on my radar at the moment.”

    Staff writer Mike Newall contributed to this article.

  • Is artificial intelligence our economy’s friend or foe?

    As a professional economist, I have the opportunity to weigh in on many issues. In some of my views I’m highly confident, some less so. When it comes to artificial intelligence and its impact on the economy, I’m less confident.

    Having said this, AI has — at least so far — been mostly beneficial for the economy. It has provided a strong tailwind to economic growth since its commercial introduction with the release of ChatGPT nearly three years ago. Over the past year, an estimated more than one-third of the growth in real GDP — the value of all goods and services produced by the economy — has been powered by AI.

    One could make a strong case that without this tailwind, the economy would be in or near a recession. The higher tariffs, the highly restrictive immigration policy, large cuts to federal government jobs, and the interminable federal government shutdown are stiff headwinds to growth.

    But the economy hasn’t buckled — thanks to AI. It is lifting growth via the massive investments being made to erect the AI infrastructure. This includes data centers that are being feverishly built across the country, electric power capacity that is needed to keep the data centers humming, and the fabrication plants that make the semiconductors powering AI‘s intense calculations.

    Even more important to economic growth is the blockbuster increase in the stock prices of AI companies. Stocks for the “magnificent seven,” the seven most iconic AI companies, are up some 40% over the past year and 300% since the unveiling of ChatGPT. Investors are anticipating huge profits from these companies.

    These gains equate to trillions of dollars in increased stock wealth, owned mostly by well-to-do Americans. The wealthy, with suddenly much larger nest eggs, are able and happily willing to spend more, and that’s what they are doing. Consumer spending by those in the top part of the income distribution is on a tear.

    AI has not eliminated lots of jobs as feared, at least not yet. Most businesses are cautious in their hiring, but that has more to do with the uncertainty created by the wild swings in economic policy, the poster child of which is the up-and-down tariffs. Businesses are also waiting to hear from the Supreme Court about the legality of these policies before making any expansion decisions.

    There is some indication that younger workers, those just entering the workforce, may be feeling the early ill effects of AI on their job opportunities. The unemployment rate for those aged 20-24 exceeds 9%, up more than 3 percentage points during the past couple of years, and is on the rise despite a decline in labor force participation. But even here, it is tough to connect the dots from AI to this group‘s difficulties landing a job.

    Of course, it is still early days in the adoption of AI. Just how disruptive AI will be to the job market depends on how quickly companies adopt it. So far, it has been slow going. Less than one-tenth of U.S. companies, mostly large companies, have begun to meaningfully incorporate AI into their workflows. It stands to reason that the most intensive users of AI would be information-technology companies, but even here, the adoption rate is no more than one-fourth.

    AI adoption by businesses is slow because it is hard. Companies don’t have employees with the right skills, their information-technology systems aren’t set up to take advantage of AI, and they are fearful of releasing AI-driven products and services, given that they might cannibalize their existing offerings. A range of compliance and legal issues must also be resolved before adoption.

    If the history of the adoption of pathbreaking technologies is a guide — for example, electricity and the internal combustion engine more than a century ago, or the personal computer and the internet several decades ago — it’s only when new businesses form and optimize around that technology that its economic impact is truly felt. But this takes years.

    AI’s adoption rate is sure to be faster than that of other technologies, but you get my point. There will be disruptions as AI replaces some jobs, and the nature of work will change as AI assumes some of the more menial tasks done by workers. But all of this should happen slowly enough to allow disrupted workers to gain new skills and new jobs.

    This isn’t to say AI raises no concerns for the economy.

    Most immediately, I worry about those high-flying AI stock prices. If I’m even close to right about slower AI adoption rates, this will come as a disappointment to euphoric investors, and stock prices will quickly come back to earth. Wealthy investors will take it on the financial chin, and so too will the economy.

    And abstracting from the near-term gyrations in the stock market, there is a reasonable concern that the financial benefits of AI will accrue largely to the well-to-do. Our already highly skewed income and wealth distribution will become even more so. The economic and political struggle between the haves and have-nots will intensify, to everyone’s detriment.

    Of course, there are even more dystopic views of where AI is set to take us, and they can’t and shouldn’t be dismissed when thinking about legal and regulatory guardrails.

    But when it comes to the economy, AI should be much more friend than foe.

  • Trump pardons Binance founder Changpeng Zhao, high-profile cryptocurrency figure

    Trump pardons Binance founder Changpeng Zhao, high-profile cryptocurrency figure

    WASHINGTON — President Donald Trump has pardoned Binance founder Changpeng Zhao, who created the world’s largest cryptocurrency exchange and served prison time for failing to stop criminals from using the platform to move money connected to child sex abuse, drug trafficking and terrorism.

    The pardon caps a monthslong effort by Zhao, a billionaire commonly known as CZ in the crypto world and one of the biggest names in the industry. He and Binance have been key supporters of some of the Trump family’s crypto enterprises.

    “Deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice,” Zhao said on social media Thursday.

    Zhao served four months in prison after reaching a deal with the Justice Department to plead guilty to charges of enabling money laundering at Binance. But, in explaining the pardon, Trump said of Zhao, “He was recommended by a lot of people.”

    “A lot of people say that he wasn’t guilty of anything,” Trump said. “He served four months in jail and they say that he was not guilty of anything.”

    The president added that he didn’t believe he’d ever met Zhao personally, but had “been told” he “had a lot of support, and they said that what he did is not even a crime.” He said Zhao had been “persecuted by the Biden administration.”

    “I gave him a pardon at the request of a lot of very good people,” Trump said.

    It’s the latest move by a president who has flexed his executive power to bestow clemency on political allies, prominent public figures and others convicted of crimes.

    White House press secretary Karoline Leavitt announced the pardon in a statement and later told reporters in a briefing that the White House counsel’s office “thoroughly reviewed” the request. She said the administration of Democratic President Joe Biden pursued “an egregious oversentencing” in the case, was “very hostile to the cryptocurrency industry” and Trump “wants to correct this overreach.”

    The crypto industry has also long complained it was subject to a “regulation by enforcement” ethos under the Biden administration.

    Trump’s pardon of Zhao fits into a broad pattern of his taking a hands-off approach to an industry that spent heavily to help him win the election in 2024. His administration has dropped several enforcement actions against crypto companies that began during Biden’s term and disbanded the crypto-related enforcement team at the Justice Department.

    Former federal prosecutor Mark Bini said Zhao went to prison for what “sounds like a regulatory offense, or at worst its kissing cousin.”

    “So this pardon, while it involves the biggest name in crypto, is not very surprising,” said Bini, a white collar defense lawyer who handles crypto issues at Reed Smith.

    Zhao was released from prison last year after being sentenced for violating the Bank Secrecy Act. He was the first person ever sentenced to prison time for such violations of that law, which requires U.S. financial institutions to know who their customers are, to monitor transactions and to file reports of suspicious activity. Prosecutors said no one had ever violated the regulations to the extent Zhao did.

    The judge in the case said he was troubled by Zhao’s decision to ignore U.S. banking requirements that would have slowed the company’s explosive growth.

    “Better to ask for forgiveness than permission,” was what Zhao told his employees about the company’s approach to U.S. law, prosecutors said. Binance allowed more than 1.5 million virtual currency trades, totaling nearly $900 million, that violated U.S. sanctions, including ones involving Hamas’ al-Qassam Brigades, al-Qaida and Iran, prosecutors said.

    “I failed here,” Zhao told the court last year during sentencing. “I deeply regret my failure, and I am sorry.”

    Zhao had a remarkable path to becoming a crypto billionaire. He grew up in rural China and his family immigrated to Canada after the 1989 Tiananmen Square massacre. As a teenager, he worked at a McDonald’s and became enamored with the tech industry in college. He founded Binance in 2017.

    In addition to taking pro-crypto enforcement and regulatory positions, the president and his family have plunged headfirst into making money in crypto.

    A stablecoin launched by World Liberty Financial, a crypto project founded by Trump and sons Donald Jr. and Eric, received early support and credibility thanks to an investment fund in the United Arab Emirates using $2 billion worth of World Liberty’s stablecoin to purchase a stake in Binance. Stablecoins are a type of cryptocurrency that are typically tied to the value of the U.S. dollar.

    A separate World Liberty Finance token saw a huge spike in price on Thursday shortly after news of the pardon was made public, with gains that far outpaced any other major cryptocurrency, according to data from CoinMarketCap.

    Zhao said earlier this year that his lawyers had requested a pardon.

    It is not immediately clear what impact Trump’s pardon of Zhao may have on operations at Binance and Binance.US, a separate arm of the main exchange offering more limited trading options to U.S. residents.

  • Toys R Us opens new seasonal holiday shops at Deptford Mall and King of Prussia

    Toys R Us opens new seasonal holiday shops at Deptford Mall and King of Prussia

    Toys R Us, the once-beloved children’s retail chain that filed for bankruptcy in 2017 and closed all of its nearly 800 U.S. stores soon after, is now opening more than two dozen flagship stores and holiday pop-up stores across the country by the end of the year.

    The new seasonal stores include two in the Philadelphia area: one at the Deptford Mall in South Jersey, and another at the King of Prussia Mall, according to the company. Toys R Us is already in many Macy’s department stores across the region.

    Before Amazon and Walmart took over the toy scene, the retail giant was the most dominant toy seller in the country, with 25% of all toys sold in the U.S. in 1990 purchased at Toys R Us, according to Bloomberg. The company wooed families with its mascot Geoffrey the Giraffe, and gleaming aisles filled with every kind of toy, from dolls to bikes to board games.

    But after sales fell dramatically and debts piled up, Toys R Us filed for bankruptcy and then shuttered its brick-and-mortar shops. At the time, customers said they would miss being able to look and touch toys in an actual store.

    “I’m going to miss the magic,” one customer told the New York Times in 2018. “I want to cry right now because we had so much fun there.”

    Since then, the company has tried various comebacks, with its parent company WHP Global reopening flagship stores around the country.

    The new holiday and flagship stores this year represent “a significant milestone in the brand’s growth,” the company said in a statement.

    The seasonal holiday shops, opened in partnership with Go! Retail Group, promise kids (and their parents) shelves of popular toy brands, from LEGO and Barbie to Hot Wheels and Paw Patrol.

    Independent toy shop owners in Philly said last season that the simplest toys, from wooden blocks to spinning tops, were proving to be the most popular, perhaps in response to AI-equipped plushies and other futuristic gadgets flooding the market.

  • Executive who bribed Amtrak manager for lucrative 30th Street Station contracts sentenced to 18 months in prison

    Executive who bribed Amtrak manager for lucrative 30th Street Station contracts sentenced to 18 months in prison

    A senior executive of an Illinois-based masonry company was sentenced Thursday to 18 months in prison for his role in a scheme to bribe an Amtrak employee in exchange for lucrative contracts to restore 30th Street Station.

    Lee Maniatis, 58, was one of several senior employees of Mark 1 Restoration who participated in the crimes. But prosecutors said he played a central role, influencing the Amtrak project manager, Ajith Bhaskaran, to sign off on a series of additional contracts worth tens of millions of dollars.

    His prison term will be followed by three years of supervised release. Maniatis has already paid a $278,000 restitution fee, though he will also be required to contribute to a restitution fund of more than $2 million alongside his former associates.

    In all, Maniatis and his colleagues funneled gifts worth more than $323,000 to Bhaskaran between 2016 and 2019, buying him luxury wristwatches and cigars, pricey vacations to India and the Galápagos Islands, Bruno Mars concert tickets, lavish dinners in Center City, and rides in limousines.

    In exchange, Bhaskaran helped secure tens of millions of dollars in extra government-funded work for Mark 1 Restoration, ultimately doubling the cost of what began as a $58 million project to renovate the historic train station’s limestone facade.

    While the firm did legitimate work on the property, most of the gifts were effectively subsidized by the government because Mark 1 falsely inflated its invoices by $2 million to cover the bribes. And Amtrak explicitly prohibits firms from offering gifts in exchange for favorable contracts.

    Prosecutors had ample evidence linking Maniatis to the bribes. Around the time of a January 2017 dinner between Maniatis, a colleague, and Bhaskaran, the Amtrak employee was considering whether to authorize an additional $13.4 million work order for the firm. Maniatis, prosecutors said, gave Bhaskaran a Tourneau worth more than $5,000 during that meeting.

    Bhaskaran approved the contract days later, and “[d]inner was worth it,” Maniatis texted an associate. Later he texted his boss: “$ ding.”

    Maniatis, accompanied by his wife, appeared in federal court in Philadelphia Thursday and teared up as he read a statement to U.S. District Judge Wendy Beetlestone.

    “I’m completely ashamed,” he said. “I was sick about it then, I’m sick about it now.”

    The judge said the former executive’s remorse was palpable. But she said Maniatis had a choice to go to authorities over those three years — and didn’t.

    “Only when federal agents raided his home” in 2019 did Maniatis admit to his wrongdoing, Beetlestone said.

    “He could have resigned,” she continued. “He could have reported it to the FBI.”

    Theodore T. Poulos, one of Maniatis’ defense attorneys, said he still recalls the day after that raid, when the former executive told the lawyer he’d “ruined his life.”

    Poulos said Maniatis had been a victim of “misguided loyalty” to Mark 1’s owner and president, Marak Snedden, who pleaded guilty to charges of conspiracy to commit bribery and making a false claim in the scheme.

    Still, U.S. Attorney Jason Grenell said, Maniatis “made a choice” to siphon public taxpayer money to “line people’s pockets.”

    The attorney commended Maniatis for being the first defendant in the case to plead guilty for his crimes, swiftly admitting his guilt while his coconspirators fended off the government’s allegations in court, Grenell said.

    Maniatis is not the first Mark 1 employee to face prosecution.

    Early this month, Snedden, was sentenced in Beetlestone’s courtroom to 7½ years in prison. The admission made Snedden the sixth person involved to face consequences for the scheme.

    Bhaskaran had been charged with unrelated wire fraud in 2019 but died of heart failure a year later.

    Court documents show Bhaskaran had outsized power to approve work on behalf of the transit agency — and that his signature on “substantially overbilled” work routinely corresponded with sumptuous treatment from Maniatis and Mark 1 employees.

    One such instance came in December 2017, when Bhaskaran authorized an additional $5.6 million in work for the firm. That same month, court records show, Maniatis paid $9,500 for him to visit India with a relative.

    Maniatis emailed Bhaskaran tickets the following year priced at $766 for a New Year’s Eve party at Stratus, a rooftop lounge at Kimpton Hotel Monaco — a purchase investigators said Maniatis had made on his own credit card.

    And when Bhaskaran decided that the Tourneau watch was not to his liking, Maniatis was ready to return it and purchase Bhaskaran an even more expensive timepiece, spending $11,294.

    Beetlestone denied Poulos’ request that Maniatis be allowed to spend the entirety of his sentence on probation. He will serve his term at a prison in Lewisburg, Pa.

    “Lack of fortitude is not an excuse for criminal conduct,” Beetlestone said.

    Staff writer Chris Palmer contributed to this article.