SUCCESS
How A Real Estate Crisis Could Hurt The Job Market
Remote work—in addition to federal interest rate hikes—has inadvertently led to a potentially big problem: a significant increase in empty commercial real estate office buildings. This trend has raised serious concerns about its possible impact on the economy, commercial real estate, the banks that issued the loans, as well as the job market. Additionally, the pivot to remote work has affected businesses that rely on the patronage of office workers, such as restaurants and mom-and-pop shops, leading to economic challenges in downtown urban locations.
Banks are reportedly facing $160 billion in losses on commercial real estate loans, according to a working paper published by the National Bureau of Economic Research.
The report reveals there is currently a 10% to 20% default rate on commercial real estate loans, equivalent to between $80 billion and $160 billion in bank losses.
“This evidence suggests that if interest rates remain elevated and property values do not recover, default rates could potentially reach levels comparing or even surpassing those seen during the Great Recession,” said the researchers at Columbia, Northwestern, Stanford and the University of Southern California.
In a note to clients last year, investment bank Morgan Stanley said that there is $1.5 trillion of commercial real estate debt that’s coming due before the end of 2025, Bloomberg reported.
With the commercial real estate market facing default, this poses a grave threat for the banking industry.
Banks and other financial institutions that loaned large sums of money to real estate developers could face losses if those developers default on their loans. This could lead to widespread job losses in the financial sector and potentially trigger a broader financial crisis.
How AI Helps Employers Screen Candidates, Manage Staff And Make Hiring And Firing Decisions
Artificial intelligence is becoming ubiquitous in the interviewing and hiring process. It carries out the initial screening of applicants to the final stage of decision making. Managers can now make better and more informed decisions about their staff and promotions.
In addition to being instrumental in a number of aspects within the hiring process, AI provides the tools to enable managers to make the tough decisions over the firing of workers. While many of the use cases are helpful and positive, there are concerns over biases, fairness and transparency.
Google Offered Employee 300% Hike To Stop Him From Joining AI Startup
In a recent discussion on the Big Technology Podcast, Aravind Srinivas, CEO of Perplexity AI highlighted the lengths to which big tech companies, such as Google, are willing to go to retain their employees. Srinivas recounted a specific instance where Google offered to 4x (300% hike) the salary of an employee who was considering a position at Perplexity AI.
PART TWO: The Shady Things You Felt Happening In The Job Search Are True
If you thought the job search was rigged against you, here’s why you’re not wrong...
AI Draws Entrepreneurs Back to San Francisco
San Francisco is reportedly once again at the center of a tech revival, with entrepreneurs and investors returning to the city after a period of exodus during the pandemic.
Tech leaders who had previously relocated to cities like Miami are now returning to San Francisco, attracted by the city’s boom in artificial intelligence and abundance of tech talent, the Wall Street Journal reported Monday.
While some investors and executives had tried to set up shop in other cities, they found that the tech ecosystem in San Francisco is unmatched. The proximity of top-tier universities like Stanford and the deep-rooted network of venture firms make the Bay Area an attractive location for tech startups.
As a result, tech companies are returning, with some expanding their office space in San Francisco, per the report. Despite challenges such as the high cost of living and social issues like homelessness and drug overdoses, tech industry leaders are recognizing the benefits of being in San Francisco.
2024 Is The Year Of Cutting Costs
Corporate America has a message for Wall Street: It’s serious about cutting costs this year.
From toy and cosmetics makers to office software sellers, executives across sectors have announced layoffs and other plans to slash expenses — even at some companies that are turning a profit. Barbie maker Mattel, PayPal, Cisco, Nike, Estée Lauder and Levi Strauss are just a few of the firms that have cut jobs in recent weeks.
Department store retailer Macy’s said it will close five of its namesake department stores and cut more than 2,300 jobs. JetBlue Airways and Spirit Airlines have offered staff buyouts, while United Airlines cut first-class meals on some of its shortest flights.
As consumers watch their wallets, companies have felt pressure from investors to do the same. Executives have sought to show shareholders that they’re adjusting to consumer demand as it returns to typical patterns or even softens, as well as aggressively countering higher expenses.
Over Half of Employees Report Lying on Resumes
From December 2022 to 2023, Google searches in the U.S. for “lying on resumes” increased by 19%. People are looking for any advantage to get a new job in 2024. Resume-building and career advice website, StandOut CV, surveyed over 2,100 Americans to ask them what lies they are telling to get hired.
Key findings:
More than 3 in 5 (64.2%) people surveyed said they had lied on their resume at least once.
Men are more likely to lie on a resume with 65.6% of men admitting to lying, compared to 63.3% of women.
Younger people are more likely to lie on a resume than older people, 80.4% of 18-25-year-olds said they had lied, compared to 46.9% of those aged 65+.
1 in 4 (25.4%) have lied about their employer references, and 9 in 50 (18.5%) of this group have used fake job reference services, costing an average of $128.60 per reference, which can involve fake employers and paid actors.
Almost 3 in 10 (29.6%) have lied about their college degree on their resume, more than half (54%) of those people told employers they had a degree when they didn’t.
This research found that fake college degree certificates and transcripts can be bought online and cost an average of $197.83.
Almost 1 in 5 (18.6%) say they haven’t been caught regarding their job application lies.
Nearly three-quarters of people (73.4%) said they would consider using AI tools in 2024 to help embellish or lie on their resume.
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.
