Workers who stayed put are finally starting to see their efforts pay off
Welcome back! A programming note: This will be my last week at the helm of the newsletter for a bit. Next week I start the second half of my paternity leave. Luckily for you, my fantastic colleague Hallam Bullock is back to run the show. Just don't mind the Britishisms.
In today's big story, workers who stuck with their employer are finally seeing the benefit of their loyalty. Meanwhile, one generation is getting left out in the cold.
What's on deck
Tech: Recruiters told us the most sought-after qualities they're looking for when hunting AI researchers and engineers.
Business: Some advice for switching up your job search if you feel it's stalling out.
But first, I'm sticking around.
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The big story
You should stay and not go
After years of job hoppers being rewarded for their mercenary approach to work, the employees willing to stick around are starting to come out on top, writes BI's Juliana Kaplan and Madison Hoff.
An analysis by the Federal Reserve Bank of Atlanta shows that year-over-year median wage growth for job stayers has been outpacing growth for job switchers since February. It's the first time that's happened for a sustained period since 2009.
Granted, the difference between the two sides isn't massive (4.3% growth for job stayers versus 4.1% growth for job switchers). But keep in mind the massive lead job hoppers once had.
In July 2022, job switchers enjoyed 8.5% in wage growth while those staying put experienced 5.9% growth.
The flip-flop is also another example of how economic uncertainty affects the labor market. With so many question marks giving companies pause, shelling out big for new hires isn't high on the priority list.
The workforce's youngest generation finds the current job environment particularly challenging, writes BI's Allie Kelly.
Beyond what I've mentioned, several factors have specifically put Gen Z in a tough spot.
Artificial intelligence is starting to prove sufficient at handling the type of responsibilities found in entry-level jobs. Government work, once viewed as a stable alternative to the volatile private sector, isn't promising due to the ongoing budget cuts.
It's a stark reality, especially considering how quickly the tides have turned. It wasn't too long ago that Gen Z was leading the job-hopping charge.
Until this year, Gen Z was entering a labor market that had the best conditions for young workers since the 1990s, writes Allie.
In many ways, a brutal job market can be a rite of passage for a young worker. From boomers' stagflation to millennials' 2008 financial crisis, an economic slump can serve as battle scars that generations eventually proudly show off. When I was entering the job market, things were BAD!
But while many of the past economic issues were solvable, some of the current issues (the impact of AI, specifically) seem likely to upend the fundamental way the economy works.
And how Gen Z fits in after that remains to be seen.
3 things in markets
1. A YOLO stock bet and a frugal lifestyle. Corey Forsythe is 35 years old, and he's already reached Coast FIRE status. That means he's saved enough for retirement and can now let his investments grow independently. From "living like a college student" to a risky investment, here's how Forsythe did it.
2. Top economic experts are sounding the alarm. The Treasury Department saw solid demand for its auction of 30-year government bonds, soothing investors' concerns. But Ray Dalio, Ken Rogoff, and Niall Ferguson told Goldman Sachs they're still concerned about an impending US debt crisis. Here's what they said.
3. When Jamie Dimon spoke, private equity listened. Early last week, the JPMorgan CEO blasted the practice of PE firms hiring junior bankers for future-dated jobs. Days later, buyout shops Apollo Global Management and General Atlantic announced they'd stop the recruiting practice this year. Here's why they took Dimon's warnings to heart.
3 things in tech
1. The AI hiring scramble is on. AI researchers and engineers are some of the hottest roles across industries right now, and companies are fighting for the best talent. For those who have an advanced degree, years of experience, and soft skills, recruiters and headhunters told BI it's a dream come true.
2. The next wearable tech? Digital face tattoos. That's the goal for researchers at the University of Texas at Austin, where they're developing an electronic "tattoo" that measures mental stress. It's meant for workers with high-risk jobs like air traffic controllers.
3. AI coding tools are disrupting the "build-versus-buy" equation. Bolt, Replit, and Cursor are some tools threatening the SaaS business model. While building enterprise software in-house was once considered expensive, it's now easier than ever to DIY, writes BI's Alistair Barr.
3 things in business
1. Some advice for frustrated job seekers. Labor-market conditions have you pulling your hair out? It might be time to switch up the types of roles you're going after or talk with friends about how to recalibrate your job search. Here are some of the best ways to do it.
2. All eyes are on the biggest advertising event of the year. Madison Avenue's heading to the south of France for the Cannes Lions ad festival. Agency consolidation, high-profile executive departures, and artificial intelligence (of course) are all top of mind.
3. A $55 billion PE firm has become healthtech's saving grace. New Mountain Capital is making a name for itself among VCs for big bets in the space, multiple investors and bankers told BI. It's a welcome change for an industry where IPOs and acquisitions have been tough to come by.
In other news
From frustration to elation: What Wall Street thinks about the potential death of the private equity recruiting race.
I took a chaotic, surreal robotaxi ride through central London. It left me impressed, but with one big question.
Burnout, $1 million income, and retiring early: What we've learned from 29 people who secretly work multiple remote jobs.
Trump voters with student loans are having 'buyer's remorse' over his latest debt collection moves.
Starting over in paradise: Eight people on what it's like to run a business, find a home, and build a life in Koh Samui.
How to quietly search for your next job on LinkedIn.
What's happening today
President Trump attends G7 Summit day two.
IRS quarterly tax filing deadline day.
The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Lisa Ryan, executive editor, in New York. Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Akin Oyedele, deputy editor, in New York. Amanda Yen, associate editor, in New York. Ella Hopkins, associate editor, in London. Elizabeth Casolo, fellow, in Chicago.
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