Why has hiring plunged for white-collar jobs?
According to the Labor Department, job growth slowed across the U.S. in April but remained healthy. While the number of jobless claims remains historically low, a Business Insider report is warning of a possible white-collar recession. Aki Ito, chief correspondent at Business Insider, joins CBS News to explain.
CBS News Streaming Network is the premier 24/7 anchored streaming news service from CBS News and Stations, available free to everyone with access to the Internet. The CBS News Streaming Network is your destination for breaking news, live events and original reporting locally, nationally and around the globe. Launched in November 2014 as CBSN, the CBS News Streaming Network is available live in 91 countries and on 30 digital platforms and apps, as well as on CBSNews.com and Paramount+.
Subscribe to the CBS News KZhead channel: / cbsnews
Watch CBS News: cbsnews.com/live/
Download the CBS News app: cbsnews.com/mobile/
Follow CBS News on Instagram: / cbsnews
Like CBS News on Facebook: / cbsnews
Follow CBS News on Twitter: / cbsnews
Subscribe to our newsletters: cbsnews.com/newsletters/
Try Paramount+ free: paramountplus.com/?ftag=PPM-0...
For video licensing inquiries, contact: licensing@veritone.com
These companies are just trying as hard as they can to not pay people what they're worth.
90% of the workforce my generation (the one graduating college rn) is a joke. My 15 year old brother could prob work better than most of em
@@mikeslechta6607 Good. If they want to pay and treat people like garbage, they can have workers who are garbage.
@@mikeslechta6607because they’re not stupid and know what their peers are saying 😂
@@mikeslechta6607not the flex u think it is m8
They’re tanking the economy before the election
Companies say whatever they want to say about hiring workers. Oh you are over qualified. Oh you are under qualified. Such BS!
I wish the government would be honest about this. It's similar to 2008.
Lmao true prices are increasing AND there is a secret depression. You are smart.
@@undefined69695 secret depression indeed, they found a way to fake the numbers so people dont freak out, reality is way worse than these made up statistics
Some of the so-called employers just want to pay lower wages while getting more productivity.
Yet you don't ever get more productivity paying less 😂 this ideology is why credentials are worthless now bravo
@@B86432 Ditto.
Why is no one talking about the unemployed people whose unemployment insurance ran out? That’s why the numbers are so low. They’re unaccounted for!
Get a full picture are you really need to look at the labor participation number and the Unemployment number together. But I agree generally that the way they report these things out it makes it sound like only 3% of the country is not working.
Exactly, mine runs out in two weeks. I still haven't been able to find a job, I have friends who are out of work for over a year now. Most of these people are 45+ - 60 years old. There are subReddits where people discuss how long they have been out of work. A lot of them are out of unemployment and are blowing through their Savings.
@@TheSnergglyIt’s how the government manipulates the population into thinking everything is fine and dandy! They use misleading statistics to convince the masses, especially those who are working, that nothing is wrong. Mean while, the middle class is getting poorer and the rich are getting even richer. It’s why I’m going back to school for my masters in AI. You have to ride the trends.
Still hiring signs everywhere, people’s standards are just too high for the jobs that are available
Why is no body talking about jobs with the Governments and the States? What about the Postal Office, being a postman is a job. Stop thinking you need to be "white collar." You can climb the ladder from a lower level job.
I know many people with 50-70k salaries that can’t find a job. I am tired of everyone lying about the unemployment situation.
Then how to they have a salary? That makes no sense.
@@johnmartin4641I agree, but maybe he meant people looking to jump.
@@johnmartin4641sometimes we have to use our common sense. The video said people who were usually making 6 figures couldn’t find work. I know people with usual salaries of 50-70k who cannot find work after being laid off.
I know right?
@@stephanieofili9069 secret depression , they found a way to fake the numbers so people dont freak out, reality is way worse than these made up statistics
2:30 lmao 100k is not elite anymore, it's the bare minimum to even stand a chance at affording a home
Went to walmart today only to discover 4 of 8 of the self check out machines have been laid off
Govt lies! 6 figure salary isn't 'elite' by the way. It's a survivable level of income, or not, if you're in an expensive metro area.
If you dont make 100k its time to start looking for another job
Yes, it is "elite". If there are people making 100k or more per year yet struggling financially, they should learn how to manage their money.
@@Zolgeistwhat’s the average price of a new house? Making 100k income just barely enough to buy a house. Inflation has pushed up the prices and your raises doesn’t keep up. It doesn’t help you’re being tax on the raise wages that suppose to help you with cost of living talk about getting beat up in both ends
I concur earning 6 digits no longer means elite… that’s now considered an average salary range. If anyone earning less than that probably has 2 jobs to make ends meet. The cost of living is high and $100k plus gross income is tight!
Realistically, the median per capita income in the US is only a little under 40K, so while 100k might not be all that impressive to you personally, the vast majority of individuals in the US will never live to see anywhere close to that, even in the highest COL areas like DC and NYC. San Francisco, granted, is a crazy outlier.
Why would you not know? Ask those in charge of the hiring. They are trying to drop those salaries. Cutting costs. Money can go to stock holders.
It's called finance capitalism. Exploitation is the name of the game 🎮. They'd outsource their own mother 👩 if the opportunity to make an extra buck at lower expense presented itself. 😳
Our economy is driven by stocks. At this point it's play money. The richest people just hold a lot of stock they don't actually work. I'm not sure if I can fix the situation in the next couple months he will lose the election. Jobs in economy are the reasons candidates lose elections.
To artificially make a supply shortage to make people take lower salaries
It's not just elite white-collar professionals, but a lot of office jobs in general
But Jerome Powell tells me that the job market is TOO GOOD right now for job seekers, and thus it's causing inflation because companies just can't find workers!! He clearly says that the main reason he's keeping interest rates high is to purposely make the job market even worse for job seekers! And NOBODY ever mentions how ludicrous it is for him to say that!
💯💯💯💯
what? can you please explain it to me like im a 12 year old? or maybe a 16-year old.
But let’s not mention the main cause of inflation- higher interest rates driving up the cost of rent and mortgage payments.
@@christine_notchristina Powell (the Head of the Federal Reserve, which sets interest rates) has raised interest rates a lot over the last 2 yrs to try to reduce inflation. Inflation was caused by supply chain disruptions during the pandemic, and also lots of recent spending by the government. But Powell, and his corporate friends, want to instead BLAME EMPLOYEES for it!! So they are trying to make things harder on job seekers because they didn't like that employees were getting pay increases during the pandemic. Those pay increases still weren't keeping up with inflation, though. But they don't care, they are still falsely claiming that those pay increases caused inflation. Even though pay increases were lower than inflation!! It's ludicrous. So they are now trying to MAKE THE JOB MARKET WORSE!! So that you'll have trouble finding a better job, and/or have trouble being able to negotiate for better pay. It's absolute madness.
@@kristinn3367 Exactly, housing costs are a large cause of all the inflation. They were greatly inflated by all the money the government printed and then distributed, which people used to buy assets like houses and stocks. Those rents and home prices won't budge now, until the Fed lowers rates.
Is it just me or did they totally skip the increased adoption of AI?
The world is a mess.
It's a mess because of this debt based economic system. 😳
It's better than all of history if one asks a historian, maybe we got used to some really good times in the past few decades.
@@alphaomega1351I know exactly how debt works, can you tell me what a “corporation” does?
So I just watched this story for 4.5 minutes to hear the answer is "we don't really know". 🤷♀
The annoying thing is that they do know: employers don't want to pay white-collar salaries. They just can't say that on TV.
I got laid off from my first tech job after graduating which took me 5 months of applying Then it took me another 6 months of applying for 15-25 jobs a day to finally get a position which was a direct call back saying they had an opening. If this didn't happen I would of gotten a transition job at a local grocery store to keep myself stable I have complete respect for everyone who has been unemployed much longer than I have. I can't imagine how hard it is to justify not being in the workforce for that long
Damn all of those years going to college down the drain And it’s going to get worse
the dream of having 6 figures salary is dead. Today due to recession that 6 figures feels like 4 figures.
6 figures mights as well be middle class at this point
I live comfortably on $2,500/mo. Maybe you just aren't spending ur money right. Financial Literacy is a thing. $100,000K for a single adult is upper class. Leave the city and stop buying fast food if you want ur money to last.
6 figure salary jobs are still there but you have to do the hard thing & grow your resume. Working one company for 30 years & retiring is a dead concept!!!
Well, the high cost of everything makes it feel like 4 figures. So, inflation.
That girl is uneducated. “Nobody knows for sure!” Girl… companies don’t hire these six figure earners because it is expensive to have their experience and dedication to make the business flourish. This is why companies want to hire someone with years of experience, but at a huge pay cut. Experienced people aren’t taking pay cuts, no matter how much the conservative capitalists beg. You have a lot of these high earners who were smart and invested their salary which has given them a decent nest egg for the time being, thus giving them the power to say no to a corporations cheap offer. My point in all this is companies aren’t going to find someone with years of knowledge and try to underpay their efforts.
Yes. I'm experienced and taking no cuts, each job cept one I've gone up in salary, as it should be.... even if just for inflation
Let's be honest. As well, artificial intelligence was expected to take over many of these "high figure" white collar jobs. Waiting out for what you deem as decent pay is basically falling down in a black hole. You have no leverage anymore because of technology (AI).
With her dog yapping non stop in the background lol
That Nico guy who got laid off from Tesla is everywhere lol
😂😂😂 He is trying to make the most out of the situation...
@@mylifeisinhishandsamen4167 trying to monetize it. Smart dude 😂
Cut costs among higher paid earners. Great analysis. Keep up the great work!
Because someone who knows how to fix your plumbing is now more valuable than the tech bro who use to be "the smart one".
There is some truth to what you say, but we are not there yet.
Fixing a toilet doesn't make you any smarter than knowing how to code. It's a skill like anything else. It's supply and demand right now that's all.
Software controls the plumbing system. Who do you think maintains that?
Tell us you are jealous of people who went to college without telling us you are jealous of those who went to college😄Btw, what do you think the end plan for AI is? The end plan is to embody it in robots, so it's pretty funny to hear the next group of people who will have their job taken trying to get haughty over AI. Let's just set all of this nonsense of 2024 aside & get to the truth...Your senior year of high school while other kid's parents were setting up a plan for their future, your parents did nothing, you didn't get to explore different careers or have any fun or freedom at college activities & you are bitter about that. One more thing, I have a friend who was laid off from a tech job & his severance package allowed him a year off, then he went & became a welder. So he is taking jobs from welders , while still having money in the bank & an education he can use at any time. That's a job & two back up plans, now tell us about how the noneducated will do better than the educated. Do you have a great paying severance package that will allow you to train in their field? Nope, but they can take your jobs whenever they want them.
Everyone works together. If all white-collar workers can't find jobs, then who will pay blue collar, since most customers would be white collar. Blue collar won't be willing to work for free, everyone works together, nothing is better than the other.
The only places that are hiring are Mcdonalds and Wendys 😂
Not even that. In a lot of locations they are trying to require people to have degrees to flip burgers. It’s pure insanity and companies have the balls to say that WE are the entitled ones
Trapped in place is happening for people who purchased a home with a lower interest rate mortgage also.
I'm tired of them saying jobs were added... I want to know who's actually being HIRED. The news keeps saying everything is healthy and fine but REAL people are telling a much different story 😑
Did anyone else just learn that they are “elite”? I figured an elite worker was someone who could afford a vacation 😂
Don’t just tell us “white-collar jobs”. Tell us where and what it is.
It's because companies are waiting to or are already leveraging AI to handle many of the "white collar" tasks within their individual organizations. For example, if you have an accounting department of 100 people and now 50 can do the same amount of work with the use of AI integration, then you can cut 1/2 the salaries in that department. Now apply that across multiple departments and companies, and you can start to see where some of the numbers are coming from. Companies are still doing well and posting solid profits while laying people off( not every company...obviously), so that would indicate, in my unprofessional opinion, that this is due to cost cutting. In business it's much easier to cut costs than make more revenue.
We're going to die struggling
Why can’t these news and “reporting” agencies understand these “job numbers” are extremely misleading. A best number are part time LOW wage jobs that no one can AFFORD to take. Because we can math and 20 hours of 16 an hour won’t pay the bills. So that job stays unfilled and unwanted.
AI will start replacing people.
Luckily, we have lots of savings and my husband makes enough to cover our needs so I’m taking this opportunity to finally start a business. That was my goal all along and this situation has certainly pushed me to start. It’s hard to start a business and it’s hard to find a job. Either way it’s hard so why not do what I really want to do?
Economy is trash
1million H1B visas were given in 2023
Die-hards of finance capitalism are always looking for the cheapest labor. Heck, they'd outsource their own children if an extra dollar could be made. 😳
H1B are some of the highest paid people in US. Because there are no Americans with higher education.
oof
That seems high for a 65,000 cap, but okay.
@@alphaomega1351 not exactly. White collar 6 figure jobs can’t be given to H1B visas effectively. Any company that does that is begging to go out of business. They mostly go to lower level workers and if you’ve ever I interacted with them, you know they can’t even handle their lower level job, let alone a higher level job.
I'm sure they aren't counting me in the stats since they'll call me self employed, but I have been looking for a job for more than a year, without health insurance, and willing to take half the pay I used to make. I have not even a hint of opportunity yet... and I have a masters degree and years of experience.
Is it because of AI? Is ChatGPT taking their jobs?
Definitely true.
No, it's outsourcing to India and Philippines where they all speak English as a second language.
Negative 👎! Tech industry has been over hiring way before the latest AI buzzword. A correction is long over do. 😳
It's definitely part of it.
there are many factors… those mentioned above are few of them…
This is so obvious and simple that I am shocked no media has done it. For the employers that complaint about not able to hire, bring some in and do a sit down with job seekers that said they absolutely cannot find a job. Let's do a face down and see what's up. Don't give me stats or academic opinions, talk to real people.
Most small businesses don’t have the resources to interview a large pool of candidates and even larger businesses have cannibalized the HR to the point where they just use Applicant Tracking Systems to hire. The ATS systems cause people like you and I a lot of pain because of the rejections.
@@shanesprecher8290 That was not the point. All we see in the media is abstract and data that are often unreliable. Why don't we just talk to real people for a change. Not just a survey that often are meaningless questions. TALK.
"healthy" Sounds alot like the same doublespeak in the "safe and effective" description. 🙄
What does it say when companies report record profits and then lay off tens of thousands.
Very professional interview with her dog barking in the background.
Lack of jobs
This is all going to blow up in company's faces - Ai doesn't buy products or services. Short-term, its been used as a cost-cutting tool by executives to trim their labor forces. But if you trim too much and leave too many people unemployed , which they've done, you're going to leave very few people in a position with disposable incomes to then use your services and products. Fast Food companies are seeing this now in their last quarterly report - a drop in revenue despite raising prices - they've found less people coming in. It's all going to blow up in their faces. Ai wasn't meant to be a replacement, it was meant to be a tool to enhance worker productivity. Executives are going to learn the hard way.
Because there is a GLUT of college educated workers, and many companies are finding that it is more cost effective to cut executive and management spots than rank and file workers. UPS just did such a purge not long ago. There are simply more white collar workers than jobs available. As AI technology advances, more jobs will become obsolete. That includes white collar jobs as well as blue.
I’m highly educated and highly paid SME and have recruiters flooding my inbox every day. Please don’t mix useless managers and slackers with highly educated just because they have a degree. They are overpaid.
We are not even "elite' at $150k.... You can not afford $6,000 mortgage and that is this price in Seattle, LA, NYC, Miami, DC Houston for any good area.
i been to many temp agencies and not even the temps are hiring... so much BS
You mean, market is dead but we pray that it will comeback!
You should be able to extend unemployment for up to two years!
Time to layoff and get the stock price bump ? Also, use the saved money for stock buy backs.
All the comments here aren’t facts unfortunately. The workers know from firsthand experience it’s greed, but nobody is going to sit these corporations down and run that study on them.
My girl aki ito blinking like crazy
I guess this probably has nothing to do with that new tech that can pass the bar exam in 2 minutes and generate fully believable paintings and music in less time than it took to read this comment.
Independent Contractors, AI/Automation, and outsourcing to foreign countries are all major factors.
It feels like employers are cutting positions and expecting the remaining workers to magically pick up the slack. Better for the bottom line.
"Employed" also includes part time workers with no benefits living out of their car because they can't afford a $3500/month studio apartment. The "working homeless" is a growing population.
Hiring is far from robust. These reports are misleading. It’s not just those making 6 figures. It’s all jobs.
Same thing in England I had only a 5 week contract financial year 23/24. No one is hiring it seems. More pain to come.
Aki, it's not "elite." It's TECH jobs, and since when is making 100k a year "elite?" That's not even breaking even in SoCal.
White-collar is more than only tech. Also, California doesn't have a monopoly on tech jobs.
I just received 25 notification emails from Indeed with about 15 white collar job listings in each of one of them. Some of them are requesting a college degree but others are saying a high school diploma and GED. What am I missing here???
I hear that a lot of places cut the college requirement. However, in some types of jobs having a college degree is a must.
@@madinkan you just literally repeated what I said..
@@shaunmc013 , well, to me it looks like you said you got many notifications requesting a college degree and others requiring a GED/High School diploma, which is fundamentally different from what I said. What I wrote was a possible explanation for this phenomenon.
Most of those Indeed listings are fake
yup.. fake listings
The labor force participation rate is the lowest it’s been in decades. The unemployment rate that they show is misleading. Young people are dropping out of the labor force and that’s not being talked about
Because Investment Spending Slowed as the Consumer Purchase went down on Inflation Trajectory to say Rise in Standards.
Because there was a hiring binge and companies are excellent T creating jobs that don’t need to exist. When revenues stop increasing then the bloat has to go to increase bottom line numbers.
Tech industry in general hired a lot of people during 2020/21 anticipating the entire world will move to digital which didn't pan out as expected or atleast to the level they wanted. Google had 119K employees in 2019 and it jumped to 156k in 2021 and to 190k in 2023. That is almost 2/3rd increase. Their current employee count in Mar 2024 is 180K. Where is the downturn? if any they overhired and are making some adjustments and probably using this to boost their share prices.
It’s standard to cut from the top first, not front line workers. And that dude who interviewed first in the clip got a managerial job at nutrition store in the mall a week later after being laid off from Tesla.
Jobs pay so low, it’s not even worth it for many!
I’m pretending to be democrats and it’s been working very well. I mean at the end of the day I need to feed my family so if I have to act left to keep a job so be it
“Elite professionals” lol
Our accounting firm is always hiring more people. They hire them by the truck load. If a person has a degree with a high GPA then they will hire a person regardless of degree.
Yep... but that won't continue indefinitely. 😳
@@alphaomega1351 we wait until after a recession starts to fire auditors and consultants. We never fire tax staff. Tax is the only department that grows year after year. Especially during downturns. But it’s the hardest work.
What's the name of your accounting firm?
Another factor is job specialization. 1% of companies hold 50% of jobs in the US. Large companies attack problems by segmenting them into smaller dedicated roles. The jobs they’re hiring for often only just entered existence, so there aren’t many experienced people on the market. The HR team also has no “feel” for what a good candidate looks like. This is why so many blow-hards get hired: because no one is qualified, but irrational confidence will suffice.
So the people who went to college for white collar jobs are the most at risk because companies don’t want to pay those bigger salaries anymore, but the workers need to earn more to get their student loans paid off.
1 bedroom rent in Thailand is only $50 per month.
In a rural village?
Cutting costs.
Strongest Labor Market Ever! Thank you President Biden
Not my president 🤓 🖕
It's amazing how all you hear is it's hard to find a job. It'd calld greed. Companies what free labor. Our government is playing into it too.
Only lawn mower and plumbing jobs are safe these days😢
I don't agree with the last statement from Aki Ito, "if you want a job, you get a job", well i've been looking for a white collar job since last year when i got laid off and i've haven't found one. Lots of competition every where for the same job and I have more than 12 years of experience as a software developer.
It’s going to be like England where if you make $20 you’re lucky. Poor pay, poor healthcare is the new English model.
Thank you Trisha Takinawa
Only 18.8% of all Americans make $100,000 or more annually😧
If high federal rates cause companies to pay interest instead of employees. Hiring slows down. Less money to people. Less buying stops inflation. More workers keeping wages low is also a benefit for large corporations. Capitalism is great however inflation and corporate profits both raised at the same time somehow????
Unemployment is higher than whats reported
Everyone is tired of trying to make 🇮🇱s richer😂
Well AI is gonna take all those remote jobs. Don’t worry WFH workers…you will be able to go to the office…the unemployment office
0:15 175k low wage jobs. "healthy economy"
“Content Marketing Specialist”
He should work on his qualifications
Cause it's oversaturated. Tech degrees are a dime a dozen.
No its not. Tech degrees aren't easy to get and tech interviews are hard. Tech is just the most hype because making a lot of money without having to do physical work. Its more attractive.
Not just tech degrees
Obviously this woman doesnt have any friends so not see the layoffs over the past 2 years
120,000 BURGER FLIPPING, GROCERY BAGGING, low paying jobs
Her blinking was bothering me
The ideal wage for the capitalist is no wage. They already told you how they think during salary.
The music has stopped and if you are out of a chair...tough. eesh.
Guess im non existent now unemployment ran out still hunting for a job doing CAD or entry level programming in c++
The latter probably no longer exists unless you're exclusively in Linux land.
@@palmshoot I know kinda wanna form a league of entry level programmers and sue the colleges😅 mothafuckas said there was gonna be 100,000 job openings in computer science.
@@user-gz3kv8xx8q It reminds me of when teachere said we needed to learn cursive because we would need to use it. Sometimes you have to make your own job. Games are always needed.
Bro, if you are putting entry level C++ on your resume, you might as well slap yourself.
@@qatarworldcupwinnermessi so you're telling me people skip being an entry level programmer and just become sr.devs while finishing school?
Why do they put on a supposed expert and when they talk they talked as if well I just seen the data and it could be this or could be that
But wait the numbers the government reports say that the economy is great and jobs are growing so hmmmmmmmmmm
Ask better questions. Be a better "reporter". What sector sticks out?
Welp. Once AI takes all the jobs then can we just stay home like we all actually want to please? 🙃
Computers have taken all rhe good jobs away, forever.
AI 😢