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Today: Where have all the workers gone? Matthew Notowidigdo on the transformation of the global labor market.
+ Can Europe finally defend itself?
And first: developments we’re tracking for this week’s despatch …
The votes are in, in Canada
Canada held national elections on Monday, returning the Liberal Party to power in a remarkable turnaround—and a sign of how U.S. President Donald Trump might be affecting politics worldwide. The Conservative Party had built a big lead in polls after the former Liberal Prime Minister Justin Trudeau became increasingly unpopular. Trudeau resigned on March 14. But the country’s politics were upended by Trump’s repeated calls for Canada to become America’s 51st state. And on Monday morning, Trump posted on social media that Canadians should vote for the man who would make their country part of the United States—though it was unclear whether he was referring to the Liberal leader, Mark Carney, or the head of the Conservative Party, Pierre Poilievre. Canadians have been profoundly turned off by Trump’s rhetoric—and tariffs.

Tensions are up between India and Pakistan
Relations between India and Pakistan just keep getting worse. The current trouble began last Tuesday, when Islamic militants killed 26 and wounded 17, mostly tourists, at a popular destination in the Indian-controlled part of Kashmir. India says Pakistan was complicit in the attack; Islamabad denies it. On Sunday, Pakistani and Indian troops exchanged fire at their disputed border in Kashmir for the third day in a row. Also on Sunday, India’s navy test-fired missiles from ships in the Indian Ocean. India’s Prime Minister Narendra Modi has indicated that India is preparing a military strike on Pakistan, and he’s been talking to world leaders to build support. Pakistan’s Railway Minister Hanif Abbasi meanwhile warned India over the weekend that his country’s nuclear weapons were “all … targeted at you.”

A ‘critical’ week ahead for Ukraine
U.S. Secretary of State Marco Rubio said on Sunday that this would be a “critical” week for peace talks between Russia and Ukraine. On Monday, Russian President Vladimir Putin said his country would observe a unilateral ceasefire for three days next week to mark the anniversary of the Allies’ victory in World War II. But U.S. President Donald Trump appears to be thinking that Putin doesn’t want peace: Trump posted on social media that “maybe” Putin doesn’t want to stop the war and is just stringing Trump along. Trump and Ukrainian President Volodymyr Zelenskyy meanwhile seem to be on better terms, after the two met privately at the funeral of Pope Francis on Saturday, and Trump praised Zelenskyy in comments after they spoke.
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Can Europe finally defend itself?
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Coming soon: Gloria Mark on why so many people’s cognitive skills have suddenly started declining …
