This week we're focusing our weekly roundup on what's been in the news lately around jobs and the workforce. There are a lot of interesting reads to kick off your weekend. Oh, and Happy Halloween!
"Some signs of labor market tightness. Earnings season is in full swing in the U.S., and the labor market continues to be a big topic as the Federal Reserve debates whether to raise interest rates for the first time in nearly a decade. Although wage growth has remained elusive despite a hiring boom, there are some anecdotal signs it’s picking up, as a number of companies in the Standard & Poor’s 500-stock index have mentioned rising labor costs on their earnings calls over the past quarter. Here’s a sampling. McDonald’s, which announced a pay increase for company-owned locations earlier this year: The incremental labor cost in the U.S. related primarily to our decision to invest in our people by raising wages and providing paid time off for employees at our company-operated restaurants, as well as providing educational assistance to all eligible U.S. restaurant employees effective July 1."
2) Chevron is Cutting around 10% of its workforce from Fortune
"Big Oil isn’t sparing the axe despite surviving a miserable third quarter in better shape than most analysts had expected. Chevron Corp. CVX 1.10% said Friday it will cut another 6,000-7,000 jobs and sell up to $10 billion more in assets, in another round of belt-tightening against a backdrop of rock-bottom crude prices. That’s around 10% of a global workforce of 64,700. As a result, the company is also shaving its forecast for production growth to between 13%-17% by 2016, instead of the 20% it predicted earlier. Chairman and CEO John Watson said the company will cut investment next year by around another $4.5 billion, or 17%, from this year. This year’s capex and exploration budget of $25-$28 billion is already 25% less than what it invested last year, but the company is still spending more on investment and dividends than it is earning from its operations, and will continue to do so until the end of next year, according to analysts polled by Bloomberg."
"The SEC just voted on and passed rules to implement Title III of the JOBS Act, bringing non-accredited investors into the fold for equity crowdfunding. This sets the stage for equity crowdfunding to continue its exponential growth over the next 3-5 years, on top of the existing market for accredited investors. Crowdfunding was already expected to surpass VC in 2016 at $34B a year in total crowdfunding online, across all types of crowdfunding. By bringing in a new class of investors with Title III, we can expect further growth of the equity market as venture capital continues to move online."
4) Climate change creates flood of water jobs from SF Gate
"As California continues to face a record drought, schools in the Bay Area are seeing an increase in students interested in studying water management. Professors and students alike say the uptick is most likely a combination of job possibilities post graduation, and the students’ desire to help preserve the state’s natural resources. The students have their pulse on the job market. ... There’s also a high level of awareness in general, and we want to get students in here who earnestly want to do something about it,” said Jean Moran, associate professor of earth and environmental science at California State University East Bay."
Lexi Gordon is a Lead Consultant for exaqueo, a workforce consultancy that helps organizations build their cultures, employer brands and talent strategies. Contact exaqueo to learn more about our employer brand innovation, workforce research, and recruiting strategy offerings.