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Latest Developments In The Job Market, Layoffs, The Stock Market And The Economy-2/26
Latest Developments In The Job Market, Tech, U.S. Stock Market And The Economy
The Job Market
What Will Happen To The Labor Market When Boomers Retire—Or Yet, Don’t Leave The Workforce?
America is facing a potential aging crisis. About one in five adults in the United States ages 65 and older were employed in 2023, with the rate nearly doubling in 35 years, according to Pew Research Center. Once these Americans start retiring or are pushed out of the job market, there could be serious ramifications for the U.S. labor force.
On the other side of the equation, if many Baby Boomers decide to remain in the job market rather than retiring, that could also cause a rippling effect in the labor force.
In 2022, around 58 million adults ages 65 and older were living in the U.S., accounting for about 17.3% of the nation's population. This percentage is expected to soar, with the older demographic projected to represent 23% of the total population by 2050—a 47% increase.
The retirement of experienced Baby Boomers will create a talent gap and brain drain in the U.S. labor market, as their in-depth, 30-plus years of industry knowledge will go out the door with them.
Why Widespread Tech Layoffs Keep Happening Despite A Strong U.S. Economy
The number of tech sector layoffs in 2024 has been outpacing the number of terminations in 2023. So far, about 42,324 tech employees were let go in 2024, according to Layoffs.fyi, which tracks layoffs in the tech industry. That averages out to more than 780 layoffs each day in 2024. In 2023, nearly 263,000 tech employees got laid off, averaging to about 720 layoffs each day that year.
There are several factors behind the churn. AI is at the forefront. Companies need to free up cash to invest in the chips and servers that power the AI models behind these new technologies. There’s also the stock market effect. Companies that conducted layoffs haven’t been punished, either by investors or on their bottom lines. In fact, they’ve been rewarded with rising stock prices.
Jack And Rick Take on Google's AI Mistakes And Nvidia's Million-Dollar Pay Packages
Tech
Elon Musk Says ‘Digital God’ Will Make AI Copyright Lawsuits Irrelevant
Elon Musk made some of his boldest claims yet concerning the future of artificial intelligence (AI) during an interview with CNBC’s Andrew Ross Sorkin.
During a wide-ranging interview, Musk responded to questions concerning recent lawsuits levied against some of the billionaire’s competitors in the AI space related to alleged copyright infringement.
“So, you think it’s a lie,” Sorkin asked Musk during the interview, “when OpenAI says that… none of these guys say that they’re training on copyrighted data.”
Musk’s response, “Yeah, that’s a lie.”
Under further prodding from Sorkin, Musk dismissed the efficacy of the lawsuits by claiming that a “digital god” would make the copyright lawsuits irrelevant:
“I don’t know, except to say that by the time these lawsuits are decided, we’ll have digital god. So, you can ask digital god at that point. Um. These lawsuits won’t be decided on a timeframe that’s relevant.”
Stock Market
Here’s How Reddit Users Can Participate In The Company’s IPO
The opportunity to buy shares in an IPO is typically reserved mainly for institutional investors, so Reddit will be able to invite only a select number of users to participate in what’s called a “direct share program.”
Starting last week, Reddit said it began sending invitations to users to participate in the IPO based on one of two measurements of engagement on the site: either the number of actions they’ve taken as a moderator of a forum on the platform (also known as a “subreddit”) or their “karma” score, a figure that indicates a user’s contributions and reputation among other users on the site.
Redditors who don’t receive one of those invitation emails will be able to pre-register to buy shares in the IPO between March 1 and March 5. If capacity in the program is filled before March 5, Reddit will open a waitlist for the program.
The IPO direct share program will be open to adult US Reddit users with accounts created on or before January 1, 2024, who are not current or former Reddit employees.
Berkshire Hathaway On The Cusp Of Joining The $1 Trillion Club
The trillion-dollar club is largely the preserve of tech titans such as Apple and Nvidia, with Meta Platforms rejoining that level this year. But Warren Buffett's Berkshire Hathaway is knocking on the door.
Berkshire Hathaway had a $952.75 billion market cap as of Feb. 23. BRKB stock has been a strong performer in 2024, up 17% so far.
Economy
Economists See Brighter Outlook For 2024—Here's Why
The U.S. economy is having what some experts are calling a "Goldilocks" moment.
A panel of economists expect this year to be characterized by faster growth, shrinking inflation and healthy job creation — a far cry from the widespread fears of a recession that marked 2023. The National Association for Business Economics (NABE) on Monday predicted that gross domestic product — a measure of the value of goods and services — will rise 2.2% in 2024, a significantly more bullish forecast than what the group projected only two months ago.
Inflation, which drives up the cost of groceries, rent and car insurance, among other spending categories, is expected to continue slowing this year. NABE forecasts that the Consumer Price Index — a basket of common goods and services — will decline to an annual rate of 2.4% this year, compared with 4.1% in 2023 and 8% in 2022. Another closely watched gauge used by the Federal Reserve to assess price changes, Personal Consumption Expenditures, is also expected to continue easing.
How To Get A Job In Tough Times: All The Advice You Need To Succeed From A Top Executive Recruiter
There’s an old saying, “Tough times make tough people.” In this book, Jack Kelly will help guide you every step of the way in your job search to ensure that you stay strong, resilient and positive, and get that great, new job.
