Latest news with #JulianaKaplan
Business Insider
16-06-2025
- Business
- Business Insider
Workers who stayed put are finally starting to see their efforts pay off
Welcome back! A programming note: This will be my last week at the helm of the newsletter for a bit. Next week I start the second half of my paternity leave. Luckily for you, my fantastic colleague Hallam Bullock is back to run the show. Just don't mind the Britishisms. In today's big story, workers who stuck with their employer are finally seeing the benefit of their loyalty. Meanwhile, one generation is getting left out in the cold. What's on deck Tech: Recruiters told us the most sought-after qualities they're looking for when hunting AI researchers and engineers. Business: Some advice for switching up your job search if you feel it's stalling out. But first, I'm sticking around. If this was forwarded to you, sign up here. The big story You should stay and not go After years of job hoppers being rewarded for their mercenary approach to work, the employees willing to stick around are starting to come out on top, writes BI's Juliana Kaplan and Madison Hoff. An analysis by the Federal Reserve Bank of Atlanta shows that year-over-year median wage growth for job stayers has been outpacing growth for job switchers since February. It's the first time that's happened for a sustained period since 2009. Granted, the difference between the two sides isn't massive (4.3% growth for job stayers versus 4.1% growth for job switchers). But keep in mind the massive lead job hoppers once had. In July 2022, job switchers enjoyed 8.5% in wage growth while those staying put experienced 5.9% growth. The flip-flop is also another example of how economic uncertainty affects the labor market. With so many question marks giving companies pause, shelling out big for new hires isn't high on the priority list. The workforce's youngest generation finds the current job environment particularly challenging, writes BI's Allie Kelly. Beyond what I've mentioned, several factors have specifically put Gen Z in a tough spot. Artificial intelligence is starting to prove sufficient at handling the type of responsibilities found in entry-level jobs. Government work, once viewed as a stable alternative to the volatile private sector, isn't promising due to the ongoing budget cuts. It's a stark reality, especially considering how quickly the tides have turned. It wasn't too long ago that Gen Z was leading the job-hopping charge. Until this year, Gen Z was entering a labor market that had the best conditions for young workers since the 1990s, writes Allie. In many ways, a brutal job market can be a rite of passage for a young worker. From boomers' stagflation to millennials' 2008 financial crisis, an economic slump can serve as battle scars that generations eventually proudly show off. When I was entering the job market, things were BAD! But while many of the past economic issues were solvable, some of the current issues (the impact of AI, specifically) seem likely to upend the fundamental way the economy works. And how Gen Z fits in after that remains to be seen. 3 things in markets 1. A YOLO stock bet and a frugal lifestyle. Corey Forsythe is 35 years old, and he's already reached Coast FIRE status. That means he's saved enough for retirement and can now let his investments grow independently. From "living like a college student" to a risky investment, here's how Forsythe did it. 2. Top economic experts are sounding the alarm. The Treasury Department saw solid demand for its auction of 30-year government bonds, soothing investors' concerns. But Ray Dalio, Ken Rogoff, and Niall Ferguson told Goldman Sachs they're still concerned about an impending US debt crisis. Here's what they said. 3. When Jamie Dimon spoke, private equity listened. Early last week, the JPMorgan CEO blasted the practice of PE firms hiring junior bankers for future-dated jobs. Days later, buyout shops Apollo Global Management and General Atlantic announced they'd stop the recruiting practice this year. Here's why they took Dimon's warnings to heart. 3 things in tech 1. The AI hiring scramble is on. AI researchers and engineers are some of the hottest roles across industries right now, and companies are fighting for the best talent. For those who have an advanced degree, years of experience, and soft skills, recruiters and headhunters told BI it's a dream come true. 2. The next wearable tech? Digital face tattoos. That's the goal for researchers at the University of Texas at Austin, where they're developing an electronic "tattoo" that measures mental stress. It's meant for workers with high-risk jobs like air traffic controllers. 3. AI coding tools are disrupting the "build-versus-buy" equation. Bolt, Replit, and Cursor are some tools threatening the SaaS business model. While building enterprise software in-house was once considered expensive, it's now easier than ever to DIY, writes BI's Alistair Barr. 3 things in business 1. Some advice for frustrated job seekers. Labor-market conditions have you pulling your hair out? It might be time to switch up the types of roles you're going after or talk with friends about how to recalibrate your job search. Here are some of the best ways to do it. 2. All eyes are on the biggest advertising event of the year. Madison Avenue's heading to the south of France for the Cannes Lions ad festival. Agency consolidation, high-profile executive departures, and artificial intelligence (of course) are all top of mind. 3. A $55 billion PE firm has become healthtech's saving grace. New Mountain Capital is making a name for itself among VCs for big bets in the space, multiple investors and bankers told BI. It's a welcome change for an industry where IPOs and acquisitions have been tough to come by. In other news From frustration to elation: What Wall Street thinks about the potential death of the private equity recruiting race. I took a chaotic, surreal robotaxi ride through central London. It left me impressed, but with one big question. Burnout, $1 million income, and retiring early: What we've learned from 29 people who secretly work multiple remote jobs. Trump voters with student loans are having 'buyer's remorse' over his latest debt collection moves. Starting over in paradise: Eight people on what it's like to run a business, find a home, and build a life in Koh Samui. How to quietly search for your next job on LinkedIn. What's happening today President Trump attends G7 Summit day two. IRS quarterly tax filing deadline day. The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Lisa Ryan, executive editor, in New York. Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Akin Oyedele, deputy editor, in New York. Amanda Yen, associate editor, in New York. Ella Hopkins, associate editor, in London. Elizabeth Casolo, fellow, in Chicago.
Business Insider
12-05-2025
- Business
- Business Insider
Consumers' new spending habits show they're preparing for the worst, and the luxury market is taking the brunt of it
Welcome back! Stock market futures are surging after the US and China said on Monday they agreed to reduce tariffs for 90 days following trade talks in Switzerland. The US is set to cut tariffs on Chinese goods to 30% during this period, while China is set to lower tariffs on American imports to 10% in the same timeframe. In today's newsletter, consumers are shifting spending habits to make themselves more resilient if a recession hits. What's on deck Markets: Here's another barrier to getting a job on Wall Street: your university's finance club. Business: Donald Trump Jr. is cashing in on his dad's presidency as a partner in a new investment fund. But first, we're cutting back on that. The big story Smart spending In a world full of economic uncertainty, consumers just want some guarantees regarding where they spend their money. We might not be in a recession, but Americans don't want to take any chances with their budgets. Cruises. Streaming subscription services. All-inclusive vacation packages. Consumers want fixed-price options that are clear and upfront about how much they'll cost, writes BI's Juliana Kaplan. Meanwhile, anything where the price might vary is a no-go. That two-week backpacking trip in Europe? No thanks. A concert with an unknown number of cocktails (and where they might not play the hits)? Maybe next summer. As depressing as consumers' lack of spontaneity sounds, it's not necessarily bad for all businesses. After all, plenty of companies have spent years desperate for us to join their subscription services that'll offer a bit more stability to their balance sheets. With businesses and customers in the dark about what might happen to the economy, everyone might benefit from a bit of lock-in. The luxury market, which boomed when middle-class households increased spending during the pandemic, is feeling the pullback, writes BI's Jennifer Sor. For the first time in 15 years, the global luxury market shrank last year, decreasing by 2%. It's not entirely surprising that pricey items are no longer at the top of most consumers' shopping lists. When the times get tough, the Rolexes and Louboutins are typically the first to go. But one does wonder when they'll make their comeback. A major premise of the trend Juliana highlighted is the concept of "affordable luxury." Giving yourself that high-end feeling without breaking the bank. That could mean a more permanent reprieve from the finer things in life. On the other hand, the rich don't seem to be slowing down. The departure of lower- and middle-income consumers from the luxury market could eventually just increase the exclusivity and value of the items. After all, if everyone can afford it, is it really that luxurious at all? 3 things in markets 1. The secret back door to a Wall Street career: student finance clubs. At elite schools, finance clubs offer invaluable training and access to recruiters. But they've also created a cutthroat race for membership, leading some students to start prepping before they even arrive on campus. 2. Forget "sell in May and go away." Historically, summer months tend to be slow for the stock market. Tariff changes, tax policy, and debt ceiling risks could shake up seasonal advice. 3. Recession-proof trades may not work. Now what? Traditional defensive stocks — like those in the consumer staples and utilities sectors — won't necessarily do the trick in this current market environment. They aren't the only options to protect your portfolio, though. 3 things in tech 1. The best early-stage investors of 2025. Every year, BI highlights the top seed-stage investors who give young startups the push they need to become some of the most successful companies in the tech world. See who made BI's fifth annual Seed 100 list. 2. Salesforce's Marc Benioff on his angel-investing "side hustle." Benioff sat down with BI to discuss his investing strategy for Salesforce Ventures and Time Ventures. His founder-mode approach is a lesson from his early experience with Steve Jobs. 3. Who could replace Elon Musk at Tesla? In May, The Wall Street Journal reported that the EV giant reached out to recruitment firms to begin the search for a new CEO, which Tesla's board chair and Musk quickly denied. Tesla analysts and investors told BI that Musk would be nearly impossible to replace, but they shared a small list of prime candidates. 3 things in business 1. Don Jr. is the new Hunter Biden. Days after his father's election victory, Donald Trump Jr. joined 1789 Capital, a tiny venture capital fund. Since his arrival, the firm has invested in companies being awarded lucrative defense contracts — and been cut in on deals offered only to a select few. There's no evidence 1789's deals break the law, but the potential conflict of interest has alarmed DC insiders, writes Bethany McLean. It's also eerily similar to what Trump blasted Hunter Biden for: trading on his father's name to win lucrative business deals. 2. He created a pencil-thin skyscraper — and a thick collection of lawsuits. Michael Stern has contributed to remaking New York City's skyline, but he also has a history of lawsuits filed against him by former business partners, investors, contractors, and his own mother, according to a BI review. Now, his legal issues have followed him to Miami, but Stern says it's just part of the job. 3. The politics of beer. A few years ago, Mexican-made Modelo became the top-selling beer in the US. Now, President Trump's tariff and immigration policies could threaten its reign. Here's how politics can affect your favorite brew. In other news Tesla tells Model Y and Cybertruck workers to stay home for a week. Diddy's Hail Mary: Convincing a sex-trafficking jury he, too, is a domestic violence victim. A business owner tested if customers would pay more for American-made. The results were 'sobering.' Forget SEO. The new hot thing is "AEO." Here are the startups chasing this AI marketing phenomenon. Gen Z's 'conscious unbossing' should be a wake-up call for businesses. What's happening today The Business Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Ella Hopkins, associate editor, in London. Elizabeth Casolo, fellow, in Chicago.
