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Prices rise but some 💼 jobs are coming back

Author

Quentin Doerges
April 10, 2023

Good morning. Hustle culture still faces strong opponents. Parents don’t want to work 100 hour weeks and miss their children’s cute disappointment on the soccer field no matter how much Silicon Valley romanticizes it.

Some types of jobs are going to get cut, while some other jobs are coming back. Inflation and interest rates are rising, but the labor market seems to be hanging on. It’s crazy out there. Put on your headphones to cancel out that noise, and let’s dig in!

Big picture just got interesting

  • Consumer price index(CPI) rose 0.2% last month.

  • Federal reserve raised interest rates to 4.75-5% in March 2023 and is expected to rise to 5.1%

  • 236k jobs were added though, as unemployment rate was contained to 3.5%

So what’s happening here? It appears the Fed is using the employment rate as a leading indicator and wants to keep incrementally increasing interest rates until inflation is under control. They are considering raising rates again in May. Inflation has been relatively kept under control from its peak of 6.7% in Sep ‘22 to 5.5% with increase in rates.

Sounds like we are on the right path, yet we want to check the Fat lady’s vocal cords before she sings.

JP. Morgan Chase Bank CEO Jamie Dimon wrote in his annual letter to shareholders: "As I write this letter, the current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come."

JOBS, JOBS, JOBS

  • 562 tech companies have laid off 168,243 staff this year.

  • GM and LG are planning to build a battery factory together in Lansing, MI as 1700 new jobs are expected to be added. Similar news is observed across manufacturing and the heavy industry

Across the spread

  • Several Silicon valley veterans are moving away from tech giants, focusing on stability and personal values

  • Haircare company Olaplex lost went from 28$/share to ~4$/share owing to *drumroll reports of hair loss and scalp damage reported by 100 women.

  • McDonalds joined a long list of companies shutting down offices and announcing hundreds of layoffs in its latest personnel restructuring.

  • Tesla lowered car prices across to propel consumer demand.

  • New york bank financial regulator said Signature banks closure was due to New york banks liquidity, not because SIgnature had customers in the crypto space

In the memetic universe, Your grandpa was right as was your Dad.