Employment

Capital Calls: U.S. jobs, Crypto data-miners

3 Feb 2023

Concise views on global finance: Rapid hiring in America has bad and worse consequences; blockchain analytics company Chainalysis is cutting staff, but those tracking crypto crimes, including governments, could use more of its services.

Intel points cost-cutting laser in wrong direction

1 Feb 2023

Turning around the embattled $117 bln chipmaker requires capital and an inspired workforce. Slashing managerial pay by 5%-15% will save money, but risks demoralizing staff and losing the best of them. Suspending a $6 bln dividend would conserve cash in a more effective way.

Goldman’s job cuts will be a problem shared

20 Dec 2022

The division that houses Marcus generates little return on its $16 bln of equity. Slashing too much in consumer and wealth would be counterproductive, however. Shareholders mostly subsidize the business; now, unlucky investment banking staff will shoulder some of the burden, too.

Capital Calls: U.S. labor market softens, slowly

8 Dec 2022

Concise views on global finance: Joblessness data suggests Americans are taking longer to find work. That’s good for inflation, but sluggish progress means the Fed will have to keep tightening monetary policy.

Worker scarcity puts pressure on U.S. policymakers

2 Dec 2022

Despite adding more jobs than economists expected in November, the labor participation rate fell again. The shrinking supply available to fill 10.3 mln open roles risks keeping inflation high. Pay hikes have yet to fix the problem. Coordinated congressional and Fed action might.

Big Tech layoffs are dystopian job-market fiction

18 Nov 2022

Twitter, Amazon and Meta Platforms are driving the largest wave of U.S. layoffs since early 2020. Yet tech firms were also quick to hire; other industries are still playing catch-up. With inflation cooling off, the chances of widespread job losses are dwindling fast.

Inflation has gig economy perk: more side hustlers

11 Nov 2022

Uber is seeing more drivers. Airbnb has had strong growth in hosts. As wallets are pinched, people are looking to pick up odd jobs. For those who profit off the shared economy, that should help their businesses. And at least for now, demand is holding up, too.

Tech firms can’t swing the axe equally

8 Nov 2022

Companies from Meta to Twitter are cutting swaths of jobs. But Mark Zuckerberg’s $253 billion outfit was far more efficient – on a per-employee basis – last year than the social media firm now run by Elon Musk. That suggests it has less room to move with layoffs.

Capital Calls: Axing the tweeps

31 Oct 2022

Concise views on global finance: Elon Musk looks set to eliminate jobs en masse at Twitter, which augurs significant downsizing across Silicon Valley.

Meta dethrones employees, elevates investors

30 Sep 2022

Facebook’s parent announced a hiring freeze and warned of restructuring. That’s reasonable for a firm exposed to an advertising slowdown. But Zuckerberg, who controls Meta, doesn’t have to care as much about profit. His decision spells trouble for Silicon Valley writ large.

Wall Street job cuts will be shallow and painful

29 Sep 2022

The slowdown in trading and dealmaking may suggest it’s time to swing the axe. But despite big firms’ headcount growing 10% since the pandemic, there’s surprisingly little fat to cut. Those on the front line will have to jostle with new recruits who don’t directly bring in bacon.

Shopify plays ‘choose your own adventure’ with pay

23 Sep 2022

The Canadian e-commerce firm is giving rank and file the chance to choose between equity and cash. Flexibility is good, and it could eliminate a gap between perceived and actual benefits. But it also forces employees to take a stand on how they think their own company is valued.

Happy-employee laws miss real problem: bad bosses

28 Jun 2022

Canada’s most populous province has passed a law on the so-called right to disconnect, joining a handful of European countries. But Ontario’s new policy is vague, difficult to enforce and doesn't tackle the real reason for employee burnout, namely toxic workplace culture.

Job losses add turbulence to Fed’s softish landing

24 Jun 2022

The central bank reckons taming inflation means doubling interest rates and unemployment rising to 4.1% in 2024. Yet it expects GDP to keep growing despite the loss of about 1 mln jobs. Even if the Fed is right, the risk is that cooling consumer confidence squashes growth.

Gulf pot of gold, China’s unemployment problem

23 Jun 2022

Investment banks like HSBC and Citigroup are beefing up teams in the Middle East to rake in juicy IPO and M&A fees. In this Viewsroom podcast, Breakingviews columnists discuss why early investment is paying off. Also, the People’s Republic’s jobs crisis is likely to worsen.

India’s military rejig offers delicate risk-return

20 Jun 2022

A move to limit service for 75% of recruits to four years has sparked violent protests. The plan will trim a $15 bln pension bill, leaving more money for equipment and weapons. It also might add to an employment problem and pile on army HR challenges as tensions with China rise.

This Chinese jobs crisis could be its worst

20 Jun 2022

Youth unemployment hit a record 18% as the national rate heads toward levels not seen since 2008. Private employers are traumatised and a strained public sector will struggle to make up the difference. Fiscal and monetary responses used previously are unlikely to work this time.

Canada’s labor paradox has global resonance

1 Mar 2022

The proportion of Canadians in work or seeking jobs is nearly back up to pre-pandemic levels and a central bank rate hike is likely this week. Yet firms are finding it hard to fill vacancies. This ominous sign suggests governments will have to do more to fix labor shortages.

A pre-pandemic U.S. job market is a long way off

7 Jan 2022

Employers added over 500,000 jobs per month in 2021, and the jobless rate fell to 3.9% in December. Yet there's further to go, and it's increasingly hard to fill positions. Nurses and others beset by in-person Covid-19 risks have quit in droves. The economy remains off-kilter.

Viewsroom: More 2022 predictions and prescriptions

30 Dec 2021

M&A bankers will need to think small, in size, but big when it comes to helping clients meet net-zero climate targets. Watch for Big Pharma to tool up in the data arms race. And the Great Resignation will hit executive suites because running companies remotely is no fun.