Why It's So Hard To Be A Worker Right Now | CNBC Marathon

Introduction (0s)

• The number of remote jobs has decreased, with about 1 in 7 jobs being remote last year, and now it's down to about 1 in 11. (3s)
• The concept of "Quiet Cutting" can be beneficial for employers if done correctly, as it can lead to increased employee engagement and satisfaction. (13s)
• However, if Quiet Cutting is done the wrong way, it can negatively impact the reputation of employers. (19s)
• The labor market is considered the biggest market, with employers allocating a significant portion of their budget to labor. (27s)
• Employers are currently hesitant to lay off workers due to their recent experience with labor shortages. (34s)
• As a result, there are limited opportunities for individuals trying to break into new roles. (39s)

Why Getting A Job Feels Impossible Right Now (Published February 2024) (49s)

• The US job market appears solid on paper, with a 54-year low unemployment rate of 3.4% in January 2023 and 2.7 million people added to the payroll in 2023 alone (49s).
• Despite the strong labor market data, Americans are less optimistic about the economy and job market, with many struggling to find employment (1m21s).
• Unemployed full-time workers applied to an average of 30 jobs, receiving only four callbacks or responses, highlighting the challenges of finding a job (1m41s).
• Job vacancies are down slightly, but companies are not working hard to fill them, contributing to the difficulties in the job market (1m50s).
• Jenna Jackson from Ardmore, Pennsylvania, shares her frustrating experience with the job search process, having applied to hundreds of jobs without success (2m19s).
• At least 55% of unemployed adults reported feeling burnt out from searching for a new job, with younger generations being the most affected (2m40s).
• The job search process can be time-consuming, tedious, and stressful, with many applicants feeling like they are repeating the same tasks every day (2m56s).
• The odds of getting hired through a job board are about 3%, requiring applicants to apply to multiple jobs to increase their chances (3m7s).
• A 2023 study from Glassdoor found that mentions of applicants being ghosted by prospective employers grew substantially since the Covid-19 pandemic (3m24s).
• The use of technology has made it easier for companies to post jobs, but also leads to an overwhelming response, making it difficult for employers to respond to every candidate (3m49s).
• The time it takes for a company to hire an employee has hit an all-time high, with some industries taking more than 67 days to make a hire (4m18s).
• The application process has become longer, with multiple rounds and assessments, contributing to the challenges faced by job seekers (4m33s).
• A job applicant had a Zoom interview with a team member and was given a case study with vague instructions, but the team didn't feel the applicant's work was enough, leading the applicant to decide the job wasn't a good fit due to the lengthy interview process (4m52s).
• Many employers believe that conducting more interviews is beneficial, but most job interviews don't reveal important information about a candidate's qualifications, and employers often don't know what the right answer to their questions is (5m22s).
• Economists describe the job market as either "tight" or "loose," with a tight labor market meaning it's difficult for employers to find workers, leading them to be more hesitant to lay off workers and more aggressive in their hiring strategies (5m55s).
• The American labor market has remained extremely tight since the pandemic, with many companies scaling back and then suddenly being able to hire again, leading to a surge in job openings and a labor shortage (6m37s).
• The job market is beginning to show signs of cooling, with less of a frenzy on the part of employers, but the hiring rate and layoff rate remain low, with employers hesitant to lay off workers due to recent labor shortages (7m10s).
• The layoff and discharge rate in the US has been hovering near historic lows, despite reported layoffs in the tech and media sectors, and many workers are choosing not to quit their jobs, reducing opportunities for new workers (7m37s).
• Research from LinkedIn found that job seekers' search intensity in the US grew by 27% in 2023, and the ratio of job openings to active applicants shifted from 1:1 in 2022 to 1:2 in 2023, indicating a more competitive job market (8m9s).
• Both employers and employees are being more selective in the current job market, with a more measured approach to hiring and job seeking (8m29s).
• The current labor market has seen a cooling trend, with experts reassuring that this is not a cause for concern yet, and it's essential to have a historical perspective on the job market (8m50s).
• Compared to the past, the current job market is great, but the sentiment is outcomes minus expectations, meaning that after labor shortages in 2021 and 2022, the 2024 market may not feel as strong despite being relatively healthy (9m4s).
• The cooldown in the labor market was intended by the Federal Reserve through its series of interest rate hikes to slow down the economy, with the labor market being the biggest market and a significant portion of employers' budgets (9m25s).
• The health of the labor market largely relies on the direction of the economy, and if the economy slows down significantly or enters a recession in 2024, the labor market may not be able to fully withstand the broader economic trends (9m49s).
• Despite potential optimism about the economy, the job search process may still be challenging, and it's essential to remember that difficulties in finding a job are not personal but rather a result of the bigger economy and uncertainty (10m27s).
• Employers' quirks in handling hiring processes can also contribute to the difficulties in finding a job, but it's crucial not to give up and to maintain a strong network of family and friends for emotional support and confidence (10m42s).

Is The Golden Age of Remote Work Over? (Published November 2023) (11m25s)

• Corporate America's views on remote work have shifted significantly since 2020, with some leaders now considering it "morally wrong" and expressing concerns about productivity, spontaneity, and management, despite previously acknowledging its benefits, such as access to a larger talent pool and effective collaboration (11m25s).
• In 2020, corporate leaders saw the advantages of remote work, including access to talent who didn't live in big cities and the ability to collaborate effectively, leading to a change in hiring strategies (11m50s).
• However, in fewer than three years, corporate leaders have reversed their approach to remote work, with some firms now threatening to fire employees who don't show up to work, and companies like Zoom taking a hard line on returning to the office (12m15s).
• According to the Census Bureau, fewer than 26% of US households still have someone working from home, down from 37% in early 2021, indicating a decline in remote work (12m21s).
• The slowdown in the labor market has contributed to the shift in discussion about remote work, with employers who had initial suspicions about remote work now having the opportunity to address their concerns about productivity (12m48s).
• Remote work was initially thrust upon the workforce due to the pandemic, but it has been found to have benefits such as no commute, increased productivity, and cost savings, with people adapting to new tools and strategies to maintain collaboration and communication (13m28s).
• As the world opened up, Corporate America began to change its tune on remote work, with some firms now taking a hard line on returning to the office, despite initial successes with remote work (14m18s).
• Concerns about productivity have driven some of the pushback against remote work, with experimental studies showing potential productivity impacts, but the applicability of these studies to the broader labor force is unclear (14m50s).
• The United States has a productivity problem, with five consecutive quarters of year-over-year productivity declines before the second quarter of this year (15m7s).
• A major study co-authored by Professor Nicholas Bloom found that fully remote work led to productivity declines of about 10 to 20% compared to fully in-person work (15m20s).
• However, remote work can be profitable for firms due to cost savings of around 10% less overhead and potentially 20-40% savings on employee costs (15m37s).
• Despite potential productivity declines, some employees prefer remote work for better work-life balance and flexibility, as seen in the case of Sujan Parajuli, who quit his job at J.P. Morgan to work remotely with Leidos (16m52s).
• Parajuli is not alone, as many employees are choosing to quit rather than return to an office setting, but finding fully remote jobs is becoming more challenging (17m31s).
• New research from Indeed found that job postings are declining faster in metropolitan areas where many jobs can be done remotely, and a similar trend is seen on LinkedIn (17m38s).
• On LinkedIn, the number of remote job postings has decreased from 1 in 7 to 1 in 11, while hybrid job postings have increased from 1 in 11 to 1 in 7 (17m47s).
• Many employers are encouraging employees to return to the office, but often in a hybrid model, with employees working from home some days and in the office on others (18m1s).
• The shift to remote work has raised concerns about the future of commercial real estate, particularly office spaces, with a potential loss of $800 billion in value in nine major cities around the world (18m36s).
• The decrease in office demand due to remote work has led to rising vacancy rates and an "urban doom loop" in various cities (18m49s).
• The shift to remote work is putting downward pressure on office valuations, which are likely to fall further, resulting in decreased property tax revenues for cities, with some cities relying on office tax revenues for up to 50% of their tax revenues (19m16s).
• The decline in office valuations could lead to a significant hole in city budgets, with tax revenues potentially falling by half if offices lose value (19m34s).
• Commercial real estate may be a loser in the transition to remote work, as offices are no longer needed or are needed less, and businesses that support office workers, such as food trucks and laundry services, may also face difficulties (19m47s).
• Some people argue that workers need to return to the office to support commercial real estate, but this is seen as outdated thinking, and instead, commercial real estate needs to adapt and find new uses for empty buildings (20m45s).
• Some cities are already converting empty commercial buildings into residential housing, and more creative solutions will be needed to repurpose these buildings (20m51s).
• If employers require employees to return to the office, they need to provide a compelling reason, as simply requiring employees to be present is not enough (21m5s).
• The pre-pandemic model of working five days a week in the office is unlikely to return, but there is still value in in-person interactions, and companies are experimenting with hybrid models, such as requiring employees to come in one to four days a week (21m20s).
• Many employees prefer working from home, citing benefits such as saving commute time and spending more time with family, and remote work is likely to remain a permanent feature of the work landscape (21m46s).

How the American Workplace Went From 'Quiet Quitting' to 'Quiet Cutting' (Published October 2023) (22m13s)

• Quiet cutting is a new workplace trend where employers restructure and reassign roles and responsibilities without laying off employees, instead offering them a new job within the company, often with the phrase "take it or leave it" (22m25s).
• This approach allows companies to avoid layoffs and the associated costs, such as severance pay, while also giving them an opportunity to reorganize and prepare for potential economic downturns (25m29s).
• Quiet cutting is seen as a sign that the tables are turning in favor of employers, who are regaining the upper hand in the labor market after a period of strong employee demand and high turnover rates (23m18s).
• Reorganizations, or "reorgs," are not a new concept, but quiet cutting is being highlighted as a distinct aspect of the current workplace trends, including mass layoffs and changes in the field of work (23m57s).
• Matt Conrad, an IBM employee who was reassigned twice, shares his experience of how the process took a toll on his mental health, leading to panic attacks and a short-term disability leave (24m12s).
• Other big-name companies, such as Adidas, Adobe, and Salesforce, have also been enforcing large-scale reassignments, and LinkedIn research has found that internal mobility is trending upwards in several industries (24m45s).
• Economists suggest that companies are resorting to quiet cutting due to fears of an impending recession or economic headwinds, and as a way to save money on severance pay and other costs associated with layoffs (25m8s).
• Quiet cutting can have negative impacts on employee morale and mental health if not done correctly, but can also be a great way for employers to optimize for the future and improve employee engagement and satisfaction if done right (26m21s).
• Matt Conrad advises employers to consider the pros and cons of quiet cutting and to give employees some say in the process, such as offering options between roles or severance packages, to make them feel more comfortable with the changes (27m13s).