U.S.–China Trade Talks and Shifts in the Global Labor Market: The global economic landscape is witnessing notable developments this week,
reflecting multiple dynamics in trade policy and economic activity.
In what could be a first step toward easing trade tensions,
The United States and China are preparing for anticipated talks in Switzerland
to break the deadlock in the years-long trade war.
Meanwhile, New Zealand has shown signs of labor market stability in Q1 2025,
with a slight improvement in employment and steady unemployment rates,
indicating economic resilience despite global challenges.
In the United Kingdom, construction sector data for April revealed a continued contraction,
albeit slower than expected, offering some hope of gradual recovery despite persistent weak demand.

Contents:

UK Construction Sector Performance

Anticipated U.S.–China Talks in Switzerland Amid Efforts to Ease the Trade War

U.S. Treasury Secretary Scott Besant and Trade Representative Jamison Greer
are heading to Switzerland on Thursday to meet with a senior Chinese economic official.
This step paves the way for broader negotiations to contain the escalating trade tensions between the world’s two largest economies.
According to a statement from the U.S. Treasury Department,
the visit is part of efforts to “enhance global economic stability.”
A separate statement from the Office of the U.S. Trade Representative confirmed
that Greer would hold talks with an unnamed Chinese official.
China’s Ministry of Foreign Affairs announced that He Lifeng,
Vice Premier and chief economic advisor to President Xi Jinping,
will visit Switzerland from May 9 to 12 and meet with U.S. officials.
In a media statement, Besant said, “The two countries share common interests,
But the current trade war is unsustainable, particularly from the Chinese side,”
adding that the goal of this round is not to strike a major deal
But to break the deadlock and prevent further escalation.”
These anticipated talks are an early sign of a potential path toward a gradual resolution of the trade war.
This began during the Trump administration and has since cast a shadow over the global economy,
forcing companies to reassess supply chains and trade costs.

Stable Unemployment in New Zealand and Slight Job Growth in Q1 2025

Data released Tuesday evening by New Zealand’s Statistics Office showed
a mixed labor market performance during the first quarter of 2025,
with slight improvements in employment levels and steady unemployment rates.
This indicates a degree of economic stability despite global headwinds.
Employment increased by 0.1% from January to March,
matching analysts’ expectations and marking a modest recovery from the previous quarter’s adjusted 0.2% decline.
On the other hand, the unemployment rate held steady at 5.1% year-on-year,
unchanged from the prior quarter, but better than forecasts that predicted a rise to 5.3%.
Changes in employment are a key indicator of domestic demand and consumer spending,
broadly reflecting the economy’s health.
Although the data was released late, it offers essential early signals about New Zealand’s labor market trends
and is considered influential for New Zealand dollar movements in forex markets.

UK Construction Sector Continues to Contract in April but at a Slower Pace

Data from the Markit Statistics Office released on Wednesday shows that the UK constructionthe
sector continued to contract in April for the fourth consecutive month.
The latest figures were better than both forecasts and the previous reading.
Indicating a slowdown in the rate of decline.
The Construction Purchasing Managers’ Index (PMI) was 46.6 points in April,
up from 46.4 in March and exceeding market expectations of 46.0.
Although the figure remains below the 50-point threshold that separates growth from contraction,
the slight improvement signals some relative stability in the sector after a prolonged period of weakness.

U.S.–China Trade Talks and Shifts in the Global Labor Market

Anticipated U.S.–China Talks in Switzerland Amid Efforts to Ease the Trade War

Stable Unemployment in New Zealand and Slight Job Growth in Q1 2025

Trade Now

UK Construction Sector Continues to Contract in April but at a Slower Pace

U.S.–China Trade Talks and Shifts in the Global Labor Market

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