Displaying items by tag: labor
Across the best MBA programs like Wharton, Duke, and Harvard business school there is a surging interest in impact investing and climate finance. In the last nine years there has been a 240% increase in enrolment in electives related to social issues at HBS. Money is flowing into ESG and that is boosting a demand for jobs and salaries, and that is peaking the interest of the rising graduates. 19% of graduate students leaving Stanford Business School are taking jobs in and around social impact. Overall this will shape business for years to come because of the exposure to ESG as it is worked in throughout the curriculum regardless if graduates end up taking final positions related to sustainability.
FINSUM: ESG is still a minority interest among rising MBA grads, and that's because salaries may be on the rise but they still trail overall averages.
Job growth had been performing below expectations in recent months, but the Recent BLS Report showed the Economy has bounced back with 531,000 jobs. Perhaps even more significant is the gender breakdown of these new positions: 57% of the new jobs were created for women. While the report is a positive, it is not all good news. Many of the new jobs created were for retail and hospitality, which have lower wages and don’t offer as many benefits. Still, wages are on the rise in this sector of the economy given the domestic labor glut. Finally, it will take time to restore the labor market to its pre-pandemic numbers. In fact, at this rate it will take another 8 months to recoup the job losses.
FINSUM: Minimizing labor disparities is a sign the economy is healing, but it's also a means for better economic growth in and of itself.
Labor shortages are rampant all across the country. It’s at its most prominent in food services and restaurants, as 80% of restaurants report to be understaffed. Companies like Miso Robotics are stepping in, as they test burger-flipping robots at CaliBurger and White Castle and are expanding their abilities to wing production at Buffalo Wild Wings. Miso says their strategy was never to swing in or capitalize on a labor shortage, but undoubtedly they are benefiting from the epidemic that is affecting the whole country.The labor shortages could continue, and those shortages permeate the AI and robotics industry themselves. There is a lot of demand for those working on robotics, and in the meantime, they aren’t fully capable of supplanting the restaurant workforce, which means there is a lot of upside.
FINSUM: Restaurant services are full of opportunities for robotics and it’s not just in cooking, they are also being used in a major way for food delivery services.
New jobless data was released this morning and it took the market by surprise. Economists had been calling for new jobless claims to stay around the level of recent weeks—something around 695,00. But what happened was quite eye-opening: they came in at 853,000. The losses show that the economy is starting to feel renewed impacts of the surge in COVID cases. According to a job market expert, “Job destruction has not come to an end … We might be gaining jobs overall, but thousands of people are losing their jobs every week because demand has not returned”. Markets dipped on the release.
FINSUM: This is worrying for the economy. Hard to say if this trend will continue, but certainly not the direction markets have been predicting the economy would be heading.
Some bad news on the jobs market emerged this week. In the weekly data, another 1.3m Americans applied for unemployment assistance. That number has stayed steady for weeks and shows no signs of abating. But it is other contextual info that makes that number worse. For instance, job openings are now declining, with total numbers in July down versus June. Growth in worker hours is also waning after growing for several weeks. Finally, google searches for “file for unemployment” are growing.
FINSUM: When you take all this together, a comprehensive picture is starting to show. It appears that the rising COVID cases may now be seriously putting a halt on the recovery.