Higher-paid employees looking for work are having a tough time
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Hey there! Leave it to the Hamptons to figure out a way to turn riding the bus into something fancy.
In today's big story, we examine how tough the job market is for the well-paid employee.
What's on deck:
Markets: The brutal reality of life as a first-year investment banking analyst.
Tech: Elon Musk secures a big win for Tesla in China.
Business: Higher-for-longer interest rates aren't going anywhere.
But first, the plight of the upper middle class.
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The big story
High pay, low vibes
More money; more problems.
That's the current job trend, as higher-paid employees are having trouble finding work despite a historically strong labor market.
It's creating what Business Insider's Aki Ito describes as a "white-collar recession." The hiring rate for workers making less than $55,000 annually (1.5%) is well above the rate for those making more than $96,000 (0.5%).
It's true not many people need work, so the lack of open roles isn't critical to the economy. But not everyone is happy at their job.
The dearth of hiring for higher-paying jobs has created a "trapped in place" economy, a concept previously highlighted by BI's Emily Stewart.
There are worse problems than making six figures at a job you don't particularly like. Especially considering the number of Americans struggling to afford basic necessities but making too much to get help.
But as Aki points out, white-collar workers' issues could be a sign of bad times to come for everyone. Companies' hesitancy to hire expensive talent might be about preparing for a market downturn.
The so-called white-collar recession could also have a lasting impact on the job market for high earners.
It comes as high-paying jobs have faced some recent headwinds. Last year saw the demise of middle managers.
And the long-term impact of AI on white-collar roles remains an ongoing question. For example, a key job for aspiring Wall Streeters — investment banking analyst — might face a hiring pullback thanks to the benefits of AI.
It speaks to the broader theme of efficiency Big Tech companies have touted for the better part of a year.
There's still money to be made in corporate America, to be sure. AI specialists remain a sought-after asset for most businesses. Cybersecurity is another good bet, as firms are investing big in the space.
But for the rest of us, the era of cushy jobs with healthy salaries and light responsibilities might be ending.
Maybe that's why Gen Z is going through its own divide. While some young workers are quickly looking to climb the corporate ladder, others have completely disconnected from work or school.
3 things in markets
From a dream job to a nightmare. Christine Ji's long days as a junior banker took their toll, and the workload ultimately led her to collapse in the office. The event forced her to reevaluate the career she thought she always wanted.
It's a big week for stocks. The Federal Reserve's rate-cut decision and press conference. The April jobs report. Tech giants Amazon and Apple's earnings reports. Raymond James' chief investment officer Larry Adam breaks down what to watch out for during a busy week for the market.
Amazon crashes the earnings party. The e-commerce giant is set to report its results for the first quarter after Tuesday's closing bell. Top Wall Street banks including Bank of America and Goldman Sachs are bullish on the "Magnificent Seven" tech stock.
3 things in tech
Elon Musk's trip to China paid off. Musk made a surprise visit to meet with Premier Li Qiang to discuss the rollout of full self-driving in China. Approval of the tech could boost Tesla sales in the country, but wouldn't be without intense competition, as local rivals are developing their own versions of FSD. Tesla stock surged on Musk's FSD "home run."
Introducing the top defense tech VCs. The space has boomed in recent years; According to PitchBook data, defense tech startups received more than $109 billion from investors between 2021 and 2023. Meet the people behind the push.
Nvidia's boss has no qualms about being a demanding leader. CEO Jensen Huang has a formidable reputation — and that's the way he likes it. "It should be like that," he said in a recent interview with "60 Minutes." "If you want to do extraordinary things, it shouldn't be easy."
3 things in business
Sorry, America. High interest rates are here for a while. On Wednesday, the Federal Reserve will announce its latest decision on interest rates — and traders believe borrowing costs will likely remain unchanged, according to the CME FedWatch Tool.
Paramount CEO Bob Bakish stepped down. For the time being, three executives will take his place. Bakish's exit comes as major shareholder Shari Redstone inches closer to a sale of her controlling stake in the company.
Shopify plans a switch-up in its Support division. Support director David Kohl said in an update posted to the e-commerce firm's internal Workplace page that Shopify had seen success in its AI experiments, sparking fear among some employees that job cuts are coming.
In other news
What's happening today
Today's earnings: Amazon, Starbucks, Pinterest, and other companies are reporting.
Binance founder Changpeng Zhao will be sentenced following his guilty plea to failing to maintain an anti-money laundering program.
The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. George Glover, reporter, in London.