Published:
Jul 10, 2023
Author:
Sarah Parsons Wolter
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The ‘great resignation’ appears to be coming to an end. The New York Times reported that the rate at which employees voluntarily leave their jobs has fallen significantly in the past few months. In 2022, more than 50m workers quit their jobs in the US, a record number that beats the prior high in 2021 of 48m. Tightness in the labor market meant that prospects of funding new jobs were high, and employers competed to raise wages to retain talent. But that appears to be changing.
The uncertain macroeconomic environment so far in 2023 has induced global layoffs and declines in hiring, as well as increases in job searches. On LinkedIn, in the US, the number of job applications per applicant has increased 35% year-on-year, while the UK saw +38% year-on-year. At the same time, in May 2023 hiring on LinkedIn is -22% year-on-year, particularly in technology, information and media. As a result, leverage has started to shift back to employers as wage growth slows.
The shifting dynamics in the labor market is often measured via federal and payroll data, and has significant consequences for savings levels, retirement planning and much more. While it remains debatable whether compensation gains made by workers during the great resignation will persist into less certain macroeconomic environments, the tools and infrastructure for access to financial literacy and management should continue to improve. No calling quits on that.
Portfolio News
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MoneyLion Teams Up with A.I. Ben Franklin to Declare the Summer of Financial Freedom - Moneylion is using the power of A.I. to bring back Benjamin Franklin to raise awareness around financial freedom while surprising select social media followers who participate in its latest brand campaign, “Financial Freedom”, that will run from July 5th to August 14th. Read more
Power To The People?
The ‘Great Resignation’ is over. Can workers’ power endure? - The furious pace of job-switching in recent years has led to big gains for low-wage workers. But the pendulum could be swinging back toward employers. Read more
Workers’ grip is slipping, despite job market’s resilience - While countries like the U.S., UK, Canada, India, Ireland, and Singapore show more signs of slack as labor market tightness gradually approaches pre-pandemic levels, several European nations continue to face tighter conditions compared to their pre-pandemic baseline. This cooling trend suggests a potential shift in the balance of power. Read more
Industry News
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Crypto miners seek a new life in AI boom after an implosion in mining - The boom in demand for high-end chips powering the rise of artificial intelligence has given new life to some of the survivors of the last tech-hype cycle: cryptocurrency miners. The demand for such processors has skyrocketed with the viral success of ChatGPT, and the resulting shortage has sparked a competition to capture computing power and find workarounds. Read more
Bank of England considers forcing foreign banks to replace branches with subsidiaries - Subsidiaries enable local regulators to seize control of failing banks rather than leaving their fate to the discretion of their parents’ supervisors. But compelling more banks to set up such units is likely to be unpopular with the industry, since full-blown subsidiaries are more expensive than merely maintaining branches in the UK. Read more
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The checking account war is over - 14% of Americans have opened a new checking account this year, according to a survey from Cornerstone Advisors. Read more
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Select Financings
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Revcast - Raleigh based revops platform raised $3m in Seed funding led by CRV. Read more
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Steadily - Oregon based digital insurance platform for landlords raised $28.5m in Series B funding led by Zigg Capital. Read more
Tandem - UK based challenger bank offering "green lending" raised £20m in growth funding led by Quilam Capital. Read more
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