College-educated workers are facing both slower wage growth and unemployment that is outpacing other groups, trends that have been identified by sources including the Federal Reserve Bank of New York. Layoffs have accelerated across recently booming industries including technology and finance. While companies like Starbucks, which eliminated over 1,000 corporate employees, purportedly did so to create more nimble and efficient teams, others (including Wells Fargo) couched it merely as an attempt to “align with market conditions.” In other words, it is increasingly hard to forecast what this might mean, short-term, for those laid off and, long-term, for the larger economy.
Business Takeaway: There are a variety of economic theories as to the causes and significance of these trends. While some suggest they are short-term and perhaps less significant than it might seem at the moment, others point to a variety of “threats” (e.g., artificial intelligence) that may serve to reinforce these patterns and effects. What have you observed in your industry?