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Labor Force Participation Rate Falls To Lowest In 50 years

1 week 1 day ago
The US unemployment rate fell to 4.2% in June largely because 720,000 people left the labor force, pushing participation to 61.5%. Excluding the Covid-era jobs market, that's the lowest participation rate since June 1976. CNBC reports: The decline in the labor force marks a "massive exodus" driven by multiple factors, said Mike Reid, head of U.S. economics at RBC. "The unemployment rate fell to 4.2% as both the number of unemployed workers and the size of the labor force pulled back," Reid wrote in a post-report commentary. "This may well be a story of retirements but could also be a story of prior job seekers dropping out of the labor force." [...] [T]he rolls of those counted as not in the labor force, a group that includes the unemployed and those not looking for work, jumped by 832,000. And while the establishment survey, which counts jobs filled, showed growth for the month of 57,000, the survey of households, which counts the actual level of those working, tumbled by 507,000. On a year-over-year basis, the labor force is down by just over 1 million, while the level of the employed also has fallen by 1.06 million and the ranks of the unemployed have risen by 40,000. The employment-to-population ratio slipped to 59% in June, the lowest since October 2021. All that has happened while the unemployment rate has risen by just one-tenth of a percentage point to 4.2%. The drop in participation is sometimes attributed to a shrinking immigrant population and retiring baby boomers and Gen Xers. However, in June the biggest plunge came from what is defined as "prime age" workers, or those between the ages of 25 and 54. That rate fell 0.6 percentage point to 83.3%, its lowest since December 2023. "Looking at the statistics now, that argument doesn't hold up so well," North said of the retirement and immigration rationale. "I hate to use the word 'alarming,'" he added, but said the numbers are cause for concern.

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AI Agent Executes 'First' End-To-End Ransomware Attack

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Sysdig says it has documented the first ransomware attack carried out end to end by an AI agent, which autonomously exploited exposed systems, stole credentials, established persistence, compromised a production database, and destroyed data. The research team named the attacker "JadePuffer" and said it gained initial access to an internet-facing Langflow instance by exploiting CVE-2025-3248. "The most striking characteristic, however, was the LLM's behavior," Sysdig director of threat research Michael Clark said in a blog post. An anonymous reader quotes an excerpt from The Register: JadePuffer's "self-narrating" payloads "contained natural language reasoning, target prioritization, and the kind of detailed annotations that human operators don't often write but LLM-generated code produces reflexively," Clark added. "The operation also adapted in real time, retrying failed steps within refined parameters. In one sequence, it went from a failed login to a working fix in 31 seconds." After exploiting CVE-2025-3248, a missing authentication vulnerability in Langflow that allows remote, unauthenticated attackers to execute arbitrary Python on the host, the AI agent began scanning for and collecting secrets, including LLM provider API keys, cloud credentials "with explicit coverage of Chinese providers" including Alibaba, Aliyun, Tencent, and Huawei, while also scanning for AWS, Azure and Google Cloud Platform, cryptocurrency wallets, and database credentials. The AI also installed a crontab entry on the Langflow server to maintain persistence and call back to the attacker's infrastructure every 30 minutes. JadePuffer's intended target was a separate internet-exposed production server running a MySQL database and an Alibaba Nacos configuration service, we're told. Nacos is an open-source service-discovery and dynamic configuration platform developed by Alibaba and used in the cloud provider's microservices applications. The agent connected to the server's exposed MySQL port using root credentials, although Sysdig doesn't know how the attacker obtained them. These credentials weren't stolen from the victim's environment. JadePuffer then attacked Nacos via multiple vectors including an authorization bypass flaw (CVE-2021-29441) and forging a valid JSON web token (JWT) using Nacos's default signing key. Additionally, using its root database access, the LLM injected a backdoor administrator into the Nacos backing database. It ultimately encrypted all 1,342 Nacos service configuration items using MySQL's built-in AES encryption function, and created an extortion demand, ransom note, Bitcoin payment address, and a Proton Mail contact [...]. However, according to the threat hunters, the victim can't recover the encrypted data, even if they paid the ransom demand, because the agent escalated "from row-level deletion to dropping entire database schemas, narrating its own targeting rationale," without backing up any of the encrypted data.

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