“A SCARY Time For Jobs” - Job Market COLLAPSES As Pay Cuts Surge & AI Replaces Workers
Episode Stats
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Summary
In this episode, Humberto and Rob talk about the current state of the job market and how technology is changing the way we work. They talk about how much it's going to take to keep up with the pace of change, and what it means for the future.
Transcript
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Go into this. Let me tell you where I want to go with this, because you almost went there, but you didn't go there.
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That's job market right now. So I'll read a couple of the headlines and see where it's going.
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Business Insider, how tech broke the job market. All right.
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Business Insider yesterday. Employees are taking pay cuts in huge numbers.
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Dave Ramsey warns young hopefuls, locked out of housing market, corporate America screwed you.
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So these messages are coming left and right, right?
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And I think, Rob, let's go with the one of employees are taking pay cuts in huge numbers.
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Let me read this to you and kind of go through it.
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Because when you're seeing a market, Facebook's claiming they're going to let go of 20% from 78,000 to losing, what, 15,800 people.
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These are $370,000 a year jobs, high-paying jobs.
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And, you know, Jack Dorsey's tweet of six weeks ago, he just opened up and said, this is what I'm going through.
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Now you've got developers that are coming in that are as good of a developer.
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You may be a full stack, but a lot of them behind closed doors are just kind of using Claude and others to help them.
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They're using different language learning models, so they're not even doing what they learn how to do.
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They're relying on it because they don't even know they're replacing themselves sometimes on the way they're working.
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It's a very interesting climate right now, but let me read the story to you, and I'm going to come to you guys.
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Yesterday when we were going through the story,
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Humberto kept saying, can we please not talk about the story?
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And I said, look, you brought the story up, so we got to talk about it.
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So, since losing his job in 2023, Scott has applied to 1,600 jobs,
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completed 78 interviews, and depleted his savings just to stay afloat.
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This guy reminds me of the Jubilee guy, but they're different guys.
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The constant rejection has become so unbearable that he went on antidepressants.
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Now, remember, this is Business Insider, so it's a little bit of a woke type of a thing.
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So as you're reading this, please brace for impact.
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That's probably the person that wrote this went to a school that's more of a left-leaning journalistic school.
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So, Rob, can we find out who wrote this article?
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I actually want to know who the author of this article is.
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So when a recruiter from a staffing company called with a job offer last December,
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He hung up, walked upstairs, told his wife the news, and cried.
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The triumph through, though bittersweet, the position was a six-month contract as a technician,
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two steps down from his previous role as a senior manager.
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He'd have no guarantee of work once the contract ends,
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and he'd be earning only half what he made before.
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Accepting this is going to set my career back five years, he told me.
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We've all heard about how grueling the white-collar job search has become,
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but the market is so tough right now that even the people lending jobs
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often aren't the success stories they appear to be.
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Revealio Labs, an analytic provider, recently looked at the data it collects
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from across the Internet and found that an alarming share of people
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are settling for roles that pay less than the ones they had before.
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Among all white-collar workers who changed jobs at the end of last year,
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Reveal Your Labs analysis showed that's the highest share in at least a decade.
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The share of professionals getting similarly large raises is also at its lowest level.
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Mine is not a family designed to withstand tragedy.
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Starring Academy Award nominee Michelle Pfeiffer and Golden Globe nominee Kurt Russell.
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You will have as much life to live as you allow yourself.
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We have now come to the other side of the supply chain, right?
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Now, call it AI, call it adjustments, call it, say, CEOs are using AI and AI washing to justify right-sizing.
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Remember I called them out, Pat, and I said that some of those job layoffs were from the metaverse.
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Remember this large, large hole that Facebook dug when they rebranded Meta started pouring billions and billions of dollars in,
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and analysts were saying, just how big is that hole for the metaverse you keep pouring billions of dollars into?
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They came out and said, well, yeah, some of these layoffs this week, yeah, there's a good number of them that are metaverse.
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And then there were Reddit responses from people that claimed to be inside Facebook that said, yeah, buddy, more like 4,500 to 6,000 of them are related to the metaverse.
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In that article, it also provided statistics that the number of large percent raises are down.
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Oh, that means people aren't having to give raises to keep people.
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Remember, you had to pay the bribe during COVID or lose your best engineer who said, I'm walking across the street.
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I work from home and I can have my dog on my lap and all these things I can do.
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price goes down when supply goes up. And I think that's what's happening now. And it's also
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happening on a regional basis. Now, is some of it AI? Maybe. Is some of it that the economy is
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taking a pulse right now? You're looking at the number of jobs that were being made. It's basically
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flat for four months. Even if you go back and you say, oh, the 92,000 job losses, they're going to
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revise that down. Yeah, okay. Go back and look at all those. Let's say we revise it. It basically
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says flat it doesn't say that we lost half a million jobs and there's a recession and all
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it says it's basically flat yeah certainly it's much more acute in the tech sector of course
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because they have that now could that branch out it potentially could but if you look at the numbers
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from ADP and you look at the job stayers and job switchers while the numbers have certainly come
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down on the switchers it's still a premium they're still at about roughly six and a half percent year
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over year versus roughly four and a half percent year over year on the job stayers so there's still
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some premium. So I think in the tech sector, this is very acute, but there are probably other sectors
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where they are still relatively stable. Brandon? Yeah, I mean, the situation in 2021, 2022 was
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a lot of land. I mean, anybody reasonable should have thought that that was unsustainable. We just
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had a ton of money pouring into the economy. We had companies with 0% interest rates taking out
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loans, so they were able to pay a ton of money like that. So that's why that craziness was
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happening. But while I think people that are around my age in this ballpark are in a tougher
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situation than historically speaking, I think it's still entirely feasible to get whatever you want
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out of life if you're, you know, make sure you're exceptional in some way or go the extra mile in
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other ways. But if you do what everybody else does, you're going to get what everybody else
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gets. So this guy applying to 1600 jobs on LinkedIn or whatever, I mean, yeah, like you're
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blending in with everybody else. I mean, like, for example, when I came here, I took like all
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these crazy drastic measures that nobody else would have done i was like contacting every single
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person that worked at the company i was um like mailing stuff here like uh all these very creative
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the way you got the job here yeah yeah so i mean i i think that that's what how people have to think
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i agree i agree and by the way look what happened you got one job then another job then now you're
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running it on the consulting side which is a complete different thing and your background
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was what a master's in national security and a bachelor's in national security right but you you
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This is why sometimes when I hear stories like this, when, hey, here's what this person's going through,
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and here's how long it's taking to do this, and here's how long it's taking to do that.
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If the people that are in this mindset that you can't go get,
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sometimes you have to go and see what the market wants to pay you today.
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Some people come in like, let me tell you, do you know I used to be with CNN or Fox or MSNBC,
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and I'm going to start a podcast, and I want you to pay me $10 million,
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You think your fame is going to translate from CNN to just starting a podcast?
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Didn't Jake Tapper just recently on CNN, was he doing a show,
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and they're trying to do it on the podcast set because CNN is starting to realize
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This is him actually doing his – this is really his new set.
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can you play this for the first 30 seconds so you're probably wondering what's going on why
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we're in my office for the first hour of the lead today so it's an experiment this is my actual desk
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where i do my actual work not the desk in the studio and we thought we would bring you into
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the space where me and my team do our actual journalism and plan the show every day so here
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we are giving it a shot you might also be wondering about the decor the posters and the
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kerchiefs and such on my wall well the theme is these are all losing presidential campaigns
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and this hobby started 26 years ago after I covered my very first presidential campaign in
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the year 2000 you can pause it so you know a lot of times people are like well I want to go from
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there to this and then you look at ranking for some podcasts are like how is that guy beating
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that guy how are amateurs beating professionals the market is going to tell you exactly how they
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feel like I'll give you an idea yesterday we're having a conversation I think Justin's in the
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room could have been yesterday could have been two days ago Justin remembered this and the
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conversation was hey what do we want to do with the chat I said what do you mean he said man the
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chat says this the chat says that the chat says this what do we do with the checks I know Tom
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reads every one of the chats that comes out right he's going through right now as we say
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I do not look what do you do with the chat right what do you look at the chat
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you know why don't we shut down the chat why man that's brutal sometimes i said no you sure
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absolutely why not let them rip why that's the difference between mainstream media and
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independent podcasters you can you and i cannot watch you know the news on tv and see what
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listeners are actually saying you just have to accept the fact that that's what the messaging
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is then you read the commentary and by the way i'll go and i'll look at instagram or x
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And this is the part that's a very important skill set
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So yesterday there was a post made, and I watched a video,
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and I went down, and I looked at the first account I clicked on.
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So I said, you're a bot, you're a bot, you're a bot, this is real.
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You're a bot, you're a bot, you're a bot, you're a bot, you're a bot.
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And on top of that, here's the other part that's happening right now,
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which is a beautiful thing because, you know, you have to know propaganda.
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Like this is the greatest season to be in a propaganda business.
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If you're an enemy, if you want to divide a nation,
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if you want to divide a political party, if you want to divide a family,
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if you want to divide a team, if you want to divide a state,
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If you want to divide anything today, the greatest propaganda weapon ever has been handed to you that even the amateur, the guy that wrote the book, Propaganda, will look at it and say, my God, we can really destroy some great states today because of the propaganda tool that we have, right?
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And you'll see all these videos of, I remember one time one guy says, Pat, one of our clients was a previous presidential candidate that got up to 19%.
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I said, what do you mean he was one of our big clients?
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Thousands of phones who are all sending tweets, who are all sending comments, who are all.
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He says, we can take anybody and make the market believe they are trending more than anything else.
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And the back end, like where the Internet is coming from, they're able to link it to different places.
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So it doesn't show like it's all from one location coming.
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so it doesn't even trigger an X or a Facebook or the old Twitter or YouTube
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I love for the market to go through it and filter each other out
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because you've got to be almost, what's the word, Tom?
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You've got to be almost, there's a word for it where when I was on the podcast
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with Joe and Joe and I were talking about comments and Joe says,
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But, Pat, you can't compare us because we're used to comments.
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I love that the market is speaking to each other to see what's going to be happening.
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The market right now when they're talking about jobs, people are saying it's a scary time for jobs.
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The market is saying, Pat, I'm afraid, I had 22 students here two weeks ago.
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Top ambassadors of this great school, 4.85 GPA, getting accepted into big schools.
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We're talking about schools like, you know, Ivy League and some of these others.
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And we're talking about career planning, what they do next.
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You have to find a way to compete against everybody else.
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Rob, if you want to play the clip for some people that just think this is a podcast,
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Many times when people think about value attainment,
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