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Yesterday β€” 23 January 2025Main stream

Trump's RTO order sparks both backlash and acceptance from federal workers: 'Everybody's trying to figure it out'

Commuters wait for metro train in Washington DC
Commuters wait for the metro in Washington DC.

John Greim/LightRocket via Getty Images

  • President Trump issued an executive order requiring federal workers to return to the office full-time.
  • Some workers told BI that it will be a major strain on commutes and family life.
  • Others say they're willing to return to the office full-time, and see the value in the mandate.

President Donald Trump has officially ordered federal workers to come into the office full-time. It has some employees rethinking their careers, while others see value in the new mandate.

The return-to-office requirement is one of Trump's first moves, and it could reshape the federal workforce. In late November, Elon Musk β€” the head of Trump's new Department of Government Efficiency β€” and former DOGE co-leader Vivek Ramaswamy proposed the RTO mandate as a cost-cutting measure. They argued that it would effectively weed out employees who didn't want to go back.

Now that federal RTO is set to become reality, Business Insider spoke to a collection of federal workers who offered split perspectives on the order. Employees were granted anonymity to allow them to speak freely about their work situations. Their identities have been verified.

Detailed below are some of the main issues highlighted by frustrated federal workers, as well as the reasoning behind those in support of RTO.

More demanding commutes

One employee at the Department of Justice told Business Insider that one reason they took the job was because of the flexibility offered by telework. Now that they're facing a potential five-days-a-week requirement, their total weekly commute time could increase to 15 hours, up from six hours a week.

"You work for the government, it's supposed to be the best place to work, and suddenly you're seeing that you're not getting the same flexibilities that you've been living with and adjusting your life for, for the last couple years," the employee said.

An employee named Tyra, who works in the Health Resources and Services Administration, said the flexibility of remote work has allowed her to work out regularly after her shift ends. She now faces a 90-minute commute each way into Washington DC, something that could cut into her training to become a Pilates instructor.

"A lot of people live a little bit further away," Tyra said. "It's just a lot to consider and change abruptly."

Another federal worker said having to work in the office every day would mean "at least 10 stressful hours a week wasted in traffic," in addition to the time spent making lunch and other elements associated with getting ready for work.

"It will cost more money in gas, car wear and tear, parking fees, and business attire," they told BI.

Family-life complications

A veteran and four-year federal employee is trying to figure out how to restructure their family's life within the RTO mandate. They told BI that they had been teleworking since they started their job, which allowed flexibility for childcare. They haven't received any formal guidance yet from their agency, but they're starting to look at other career opportunities outside the federal government.

"Everybody's trying to figure it out, and we're trying to do it with limited time and on the fly," the worker said.

A clinical psychologist for a federal entity said they won't be able to work their job if it's not remote. As a military spouse, the employee is required to move around often, making it impossible to commute five days a week to a single location far from where they're stationed.

"It honestly makes me consider just leaving entirely in the first place," they said. "I can't be working for anyone where there's this much uncertainty when I have to support my family and when I have small children."

Those who support RTO

But not everyone is opposed to the RTO mandate. One federal employee says that while they're only required to work in the office two days a week, they would be willing to expand that.

"You need us to come in five days, we'll come in five days," the employee said. "We're adapting as we go along."

The employee added that they expect to see some workers retire earlier than planned due to this mandate. While they recognize the challenges it could bring, they're grateful for the employment and willing to work with it.

"There's a majority of Americans who probably would kill to have that opportunity, and they probably don't want to hear somebody complaining about, 'Well, I got to return to the office,'" the employee said.

Another worker in the Department of Homeland Security, who has already been going to work in-person the majority of the time, told BI being in the office "really enhances collaboration," adding that "decisions often happen more quickly." They also said working in the office can create clearer "boundaries between work and home life."

"I think it's overall a positive change in our work environment," the employee said.

Depleted morale and 'brain drain'

A Social Security Administration employee who works from home twice a week said the new RTO mandate will hurt organizational culture by deepening existing worker dissatisfaction.

"Morale is so low right now in this agency," they said, adding, "we'll have even more people wanting to leave."

In addition, one Treasury employee said the RTO order would lead to losing staff, including pushing some people into retirement.

There's going to be a possible "brain drain of senior, knowledgeable employees," they said.

Read the original article on Business Insider

Before yesterdayMain stream

Trump's administration is looking to slash the federal workforce. Here's where the most people are employed and what they make.

22 January 2025 at 09:58
Donald Trump
President Donald Trump is looking to slash the federal workforce.

Andrew Harnik/Getty Images

  • Trump's administration asked federal agencies to compile lists of workers they could easily fire.
  • It reflects Trump's goals to reduce government spending and reduce the federal workforce.
  • Millions of Americans are employed by the US government. Here's how the agencies break down and what workers make.

President Donald Trump's administration is targeting federal workers' jobs.

On Trump's first day in the White House, his Office of Personnel Management asked agencies to compile lists of federal workers they could easily fire. Trump also signed an executive order on Monday establishing a hiring freeze on new workers to federal agencies.

It reflects the early priorities of the Department of Government Efficiency, which Tesla CEO Elon Musk is leading to cut government waste. Trump signed an executive order on Monday establishing DOGE as part of the White House with a mission of updating the government's technology systems.

While DOGE's stated goals in the executive order are narrower than originally proposed, Musk and Trump have previously voiced support for firing federal workers and eliminating federal agencies.

More than 2 million Americans collect their paychecks from the federal government, so Business Insider looked into which agencies employ the most people and what they pay on average.

The Trump press team and OPM did not immediately respond to a request for comment from BI.

The US government is the largest employer in the country

The US Office of Personnel Management showed eight cabinet-level agencies, which are at the center of the executive branch and have heads that report directly to the president, had more than 100,000 civilian employees as of March.

Almost half a million people were employed in the Department of Veterans Affairs, while the Department of Education had just over 4,000. The Treasury Department had more than 100,000 employees as of March. The overwhelming majority of those β€” about 94,000 β€” were employed in the Internal Revenue Service.

Most departments had six-figure average salaries, with the Department of Education and the Department of Energy having the highest averages.

It's still unclear if DOGE or the Trump administration will focus on cuts at specific agencies. In the past, however, Trump has targeted the Department of Education, saying in 2023: "One other thing I'll be doing very early in the administration is closing up the Department of Education in Washington, DC, and sending all education and education work and needs back to the states."

Musk said during October remarks that while the commission's goal was to cut spending by reducing head count, he'd consider giving impacted workers "very long severances" that could amount to two years' pay.

"The point is not to be cruel or to have people not be able to pay their mortgage or anything," Musk said during his October remarks, adding, "We just have too many people in the government sector, and they could be more productive elsewhere."

The US Office of Personnel Management says on its website that "severance pay is authorized for full-time and part-time employees who are involuntarily separated from Federal service and who meet other conditions of eligibility." A spokesperson for the office told BI that the severance policy was up to date and that it "cannot comment on the actions of future administrations."

DOGE's goals could also still change, and it's unclear which spending cuts Congress would approve. BI previously reported that the US spent $6.75 trillion in fiscal year 2024. With Social Security, health programs, and Medicare topping the spending list, they could be on the commission's chopping block. But Medicare and Social Security are forms of mandatory spending that would require legislation to change.

Are you employed by the federal government and have a story to share? Reach out to these reporters at asheffey@businessinsider.com and mhoff@businessinsider.com.

Read the original article on Business Insider

President Trump targets DEI mandates for federal employees

Donald Trump and his wife Melania Trump
Donald and Melania Trump leave prayer services before the inauguration ceremony on Monday.

Jeenah Moon/REUTERS

  • President Trump took aim at federal DEI policies in his inaugural address on Monday.
  • He pledged to reverse executive orders from Biden, in favor of a "merit-based" society.
  • On Tuesday, the White House issued a presidential action ending DEI-based hiring in the FAA.

President Donald Trump signed an executive order on Monday ending diversity, equity, and inclusion programs in the federal government.

Federal agencies and departments have 60 days from the signing of the order to end DEI-related practices.

The executive order will be carried out by the US Office of Personnel Management and the Attorney General, who will review all existing federal employment practices, union contracts, and training policies to ensure compliance with the DEI termination order.

"Federal employment practices, including Federal employee performance reviews, shall reward individual initiative, skills, performance, and hard work and shall not under any circumstances consider DEI or DEIA factors, goals, policies, mandates, or requirements," the order read.

A separate order for the FAA

On Tuesday, Trump issued a separate presidential action ending DEI-based hiring in the Federal Aviation Agency.

All DEI initiatives in the FAA, the order said, will be replaced with practices of "hiring, promoting, and otherwise treating employees on the basis of individual capability, competence, achievement, and dedication."

As of Tuesday night, the contents of at least two web pages detailing DEI initiatives and DEI hiring at the FAA have been taken down.

The FAA and its overseeing body, the Department of Transportation, did not immediately respond to a request for comment from Business Insider.

Targeting DEI

Trump also used his inaugural address Monday to target DEI initiatives in the federal government.

"This week, I will also end the government policy of trying to socially engineer race and gender into every aspect of public and private life," he said Monday. "We will forge a society that is colorblind and merit-based."

He said it will be official US policy that "there are only two genders: male and female."

The remarks echoed his statements during a rally a day earlier when he pledged to end DEI mandates in government and the private sector.

Like many orders Trump signed on his first day, the move aims to undo several orders issued by Joe Biden during his presidency.

In one executive action from June 2021, Biden said the federal government is the largest employer in the nation and, thus, "must be a model for diversity, equity, inclusion, and accessibility, where all employees are treated with dignity and respect."

In response, the Diversity, Equity, Inclusion, and Accessibility (DEIA) Talent Sourcing for America initiative was launched in September of 2022.

A 2022 report from the Office of Personnel Management said the government-wide DEIA initiative included a plan to prioritize equity for LGBTQI+ employees by "expanding the usage of gender markers and pronouns that respect transgender, gender non-conforming, and non-binary employees; and working to create a more inclusive workplace."

The report showed minimal changes in the federal workforce's demographics between fiscal years 2017 and 2021, which encompassed most of Trump's first term. This included "minor" changes in the shares of the federal workforce by race and gender.

A 2024 report from OPM found minor increases in federal staffing diversity under the Biden administration after the DEIA objectives were announced, but indicated the office's targets for diversity and equity initiatives were not met.

Though there had been only slight workforce demographic changes under the Biden administration, the Trump administration's first official statement released Monday reiterated his plans to "freeze bureaucrat hiring except in essential areas to end the onslaught of useless and overpaid DEI activists buried into the federal workforce," and "establish male and female as biological reality and protect women from radical gender ideology."

Meanwhile, several companies β€” including the nation's largest private employer, Walmart β€” have been reversing course on DEI initiatives in the weeks following Trump's election in November.

Read the original article on Business Insider

Trump orders federal employees to return to the office full-time

20 January 2025 at 16:55
Donald Trump
President Donald Trump promised stark changes for federal workers before he took office.

Scott Olson/Getty Images

  • Donald Trump signed a return-to-office order for federal workers during his first hours in office.
  • Many federal civilian workers were eligible for telework but not working remotely all the time.
  • Elon Musk indicated in November that he supports government workers being fully in the office.

President Donald Trump on Monday signed an executive order mandating that federal workers return to their offices full-time, a core element of his focus on overhauling the government workforce.

For years, Republicans have sought to weaken protections that federal workers have long enjoyed, with many conservatives zeroing in on reclassifying scores of career civil servants.

"Heads of all departments and agencies in the executive branch of Government shall, as soon as practicable, take all necessary steps to terminate remote work arrangements and require employees to return to work in-person at their respective duty stations on a full-time basis, provided that the department and agency heads shall make exemptions they deem necessary," the order read.

Trump has been especially insistent on a return-to-office push, with his position threatening the remote and hybrid arrangements that many federal workers have enjoyed since the start of the COVID-19 pandemic.

Some workers may consider quitting instead of working from the office full time.

Elon Musk, who will lead Trump's cost-cutting advisory group, the Department of Government Efficiency, said he'd welcome this.

"Requiring federal employees to come to the office five days a week would result in a wave of voluntary terminations that we welcome: If federal employees don't want to show up, American taxpayers shouldn't pay them for the Covid-era privilege of staying home," Musk said in a November op-ed in The Wall Street Journal. The op-ed was co-written with Vivek Ramaswamy, who is leaving DOGE and is expected to run for governor of Ohio.

While many federal employees can telework, an August 2024 report from the Office of Management and Budget said around 10% of the roughly 2.3 million civilian workers in two dozen major agencies, including the Department of Defense and the Social Security Administration, "were in remote positions where there was no expectation that they worked in-person on any regular or recurring basis."

That includes over 60,000 people in the Department of Defense, around 37,000 in the Department of Veterans Affairs, and nearly 27,000 in the Department of Health and Human Services.

The Office of Management and Budget found, based on average data representing pay periods ending May 4 and May 18, around 1.1 million civilian workers employed in the two dozen agencies were eligible for telework.

The Department of Defense has a large workforce compared to the other agencies, but only about 8% were remote employees.

"Among the subset of federal workers that are telework-eligible, excluding remote workers, 61.2% of regular, working hours were spent in-person," the OMB report said. That figure for the Department of Agriculture was 81%, and around 80% for the Department of State.

When asked about potential relocation out of DC and return to office before the inauguration, Trump's transition team pointed to Trump's comments at a December 16 press conference that if people don't return to the office, "they're going to be dismissed."

On Monday, Trump also issued an executive order that put a freeze on federal hiring.

"As part of this freeze, no Federal civilian position that is vacant at noon on January 20, 2025, may be filled, and no new position may be created except as otherwise provided for in this memorandum or other applicable law," the order read.

That executive order does not apply to military personnel, immigration enforcement positions, or positions involving national security or public safety.

Read the original article on Business Insider

A map shows how fire-ravaged California gives more in federal money than it gets back

17 January 2025 at 01:08
A plane drops water on part of the Los Angeles wildfires in January 2025.
Wildfires in Los Angeles have spurred a political debate over government aid.

Brian van der Brug/Los Angeles Times via Getty Images

  • Wildfires have ravaged Los Angeles for over a week.
  • Some Republican lawmakers argued that aid to California should be conditioned on policy changes.
  • Data shows California pays more in taxes than it receives in federal spending.

Los Angeles' wildfires spurred a political debate about whether California should continue receiving unconditional federal aid in the wake of the disaster.

Wildfires have ravaged LA for over a week, having burned through more than 40,000 acres, destroyed over 12,300 structures, and killed at least 25 people.

The scope of the damage and the severe impacts on the state's residents have prompted lawmakers on both sides of the aisle to participate in the conversation about whether the federal government should let more funds flow to help stop the wildfires.

Some Republican lawmakers have criticized the current aid going to California and supported conditional aid hinged on policy changes in the state. GOP Rep. Warren Davidson, for example, recently told Fox News that he supports more federal aid for wildfires, but policy changes like better forest management should accompany it.

"If they want the money, then there should be consequences where they have to change their policies," he said. Davidson also wrote on X on January 12 that California Gov. Gavin Newsom's executive order to help wildfire victims rebuild their homes was "reasonable," but he said more action is needed on water management and fire prevention.

Speaker of the House Mike Johnson expressed a similar sentiment, telling reporters on January 13 that "there should probably be conditions" on any wildfire aid that California receives.

But despite those GOP criticisms of potential aid to California, data shows that the state has actually received less from the federal government than the taxes it paid.

The Rockefeller Institute of Government, a public policy think tank, found that in fiscal year 2022, California's federal tax receipts per capita was $17,731 while its federal expenditures per capita, excluding temporary COVID-19 spending measures, was $14,492 β€” or a difference of $3,239 taxes paid minus spending received. A dozen other states had higher values of taxes paid than federal spending distributed in a state per capita, including New York and Illinois.

You can hover over the map below to see what this looked like by state.

Some commentators pointed out the disparity between California's taxes and spending. Economist Paul Krugman wrote in a Substack post, which also highlighted similar data from the Rockefeller Institute, that California subsidizes states, "red states in particular, through the federal budget."

Even on the campaign trail, President-elect Trump hinted that future funding for wildfires could hinge on California's policies. "We're going to take care of your water situation, and we'll force it down his throat," Trump said of Newsom during an October campaign rally in California, referring to the state's water policies. "And we'll say: Gavin, if you don't do it, we're not giving you any of that fire money that we send you all the time for all the fire, forest fires that you have."

Trump posted on Truth Social on January 8: "One of the best and most beautiful parts of the United States of America is burning down to the ground. It's ashes, and Gavin Newscum should resign. This is all his fault!!!"

Newsom has pushed back on Trump and other Republican lawmakers' comments on the wildfires, recently telling CNN: "People are literally fleeing, people have lost their lives, kids lost their schools, families completely torn asunder, churches burning down, and this guy wanted to politicize it," referring to Trump.

The Trump transition team, along with Davidson and Johnson's offices, did not immediately respond to a request for comment from Business Insider.

While it's too early to calculate the costs of the wildfire damage, a recent estimate from AccuWeather found the price tag could total between $250 billion and $275 billion. Local and federal governments would likely pick up some of the tab, BI previously reported, along with private and state insurers.

President Joe Biden also said during January 14 remarks that those impacted by the wildfires will receive a one-time payment of $770 to help them quickly purchase necessities.

"Although the federal government is going to cover 100% of the cost for the next 180 days for things like firefighter overtime pay, debris removal, temporary shelters, it's going to cost tens of billions of dollars to get Los Angeles back to where it was," Biden said. "So, we're going to need Congress to step up to provide funding to get this done."

Read the original article on Business Insider

Inflation accelerated as expected in December

15 January 2025 at 05:32
A person is walking by a store with photos of items and prices displayed

Liu Yanan/Xinhua via Getty Images

  • Inflation accelerated in December for the third straight month.
  • The consumer price index rose by 2.9% year over year, matching the consensus expectation.
  • The Federal Reserve is expected not to cut interest rates later this month.

Inflation sped up in December as expected, marking the third consecutive month of acceleration.

The consumer price index, an inflation measure, increased by 2.9% over the year that ended in December. That matched the forecast increase and was above November's year-over-year increase of 2.7%.

While 2.9% is the highest rate since July, it falls short of the roughly 3.1% in January 2024. Inflation was about or above 3% for the first half of the year; it slowed to 2.4% in September from a peak of 3.5% in March.

Core CPI, which excludes volatile food and energy prices, increased by 3.2% over the year that ended in December, below the forecast of 3.3%, which would have matched the rates in September, October, and November.

The year-over-year percentage change in the shelter index continued to slow. The index increased by 4.6% over the year that ended in December, down from the 6% year-over-year increase in January 2024.

The CPI climbed by 0.4% over the month in December, matching the forecast and above November's 0.3% increase. The Bureau of Labor Statistics said energy contributed more than 40% of that increase.

The gasoline index rose by 4.4% over the month, higher than November's 0.6% increase. The fuel-oil index similarly increased by 4.4% in December after rising by 0.6% in November.

Core CPI rose by 0.2% from November to December. It was expected to rise by 0.3%, as it had done for four months before December.

"The takeaway for consumers is that the pressure on household budgets is unrelenting," Greg McBride, the chief financial analyst for Bankrate, told Business Insider.

The Federal Open Market Committee could consider the new data in its interest-rate decision at the end of the month. After three consecutive cuts, it's unlikely to make another cut.

Traders have been expecting the committee to hold the Fed's target rate steady at 2025's first scheduled meeting. CME FedWatch, which indicates what traders expect to happen to rates based on market activity, showed before the CPI release a 97% probability the Fed's target rate would be unchanged. That was little changed after the release.

"The consumer reaction is going to be a lot different than the market reaction in the sense that the market is going to look at the improvement in the core and take that as good news and rejoice," McBride said. "But consumers' household budgets are based on the headline, and the food and energy costs are both rising at a faster than desired pace and pressuring already tight household budgets."

Jerome Powell, the Fed chair, said at a press conference on December 18, after the latest interest-rate decision, that the committee would "assess incoming data, the evolving outlook, and the balance of risks" when figuring out any additional changes to its target rate.

"We know that reducing policy restraint too fast or too much could hinder progress on inflation," Powell said. "At the same time, reducing policy restraint too slowly or too little could unduly weaken economic activity and employment."

The latest jobs report, published Friday, showed that job growth exceeded the forecast in December, while unemployment fell to 4.1% from 4.2% in November. Cory Stahle, an economist at the Indeed Hiring Lab, said the labor-market report "validates the stance that we've seen from the Fed recently."

Read the original article on Business Insider

10 high-paying jobs with growing demand and flexible work opportunities

14 January 2025 at 09:47
A dog with a veterinary worker

Monty Rakusen/Getty Images

  • Indeed released its list of the best jobs for the year based on pay and other factors.
  • The career site ranked the job list based on the share of postings on its platform.
  • Structural engineers, attorneys, and physicians were part of the top 10.

Career site Indeed found that if you're looking for work as a veterinarian, civil engineer, or structural engineer, 2025 could be your year.

Indeed published a list of the best jobs for the year based on growth in job postings, flexibility, and typical salary. To be included in the ranking, jobs needed a median annual salary of at least $75,000, at least 5% of their postings had to have been for hybrid or remote roles, and they had to have had job-posting growth on Indeed of at least 20% between December 2021 and this past December.

"I think we do see a rather large amount of variety on this list, and although they may be somewhat technical or some require more specialized education and training, it's not always a catchall," Gabrielle Davis, a career trends expert at Indeed, said. "There are usually different avenues or different ways to approach some of these different fields as well if you're either interested in breaking out into them or even career changing."

Indeed's post about the results said, "healthcare and engineering endure as dominant sectors." Physicians had a median salary of $225,000, and demand based on Indeed job postings has increased.

"It's kind of showing the need for the workforce to balance both deep technical knowledge and the ability to tackle evolving societal needs," Davis told Business Insider.

While job growth in December was strong, economists who spoke to Business Insider before that data was available think tech job seekers and others may have a hard time finding work this year.

Below are the top 10 best jobs, along with their median posted salaries on Indeed, growth in job postings between December 2021 and this past December, and the share of postings that offer remote or hybrid work. Indeed ranked the jobs by the share of postings on its platform.

10. Structural engineer
Three workers with safety vests and hard hats

Akacin Phonsawat/Getty Images

Salary: $110,725

Growth in job postings: 127%

Mentions of remote/hybrid in job postings: 18.8%

"I think one of the biggest trends that pop out is that we're seeing this resurgence and really strong representation of more traditional roles like engineers, physicians, attorneys, nurses," Davis said about the results.

Structural engineer is one of the engineering jobs that made the list. Davis said this job plays a "key role in the infrastructure of different cities or buildings, whether it's more on a corporate versus residential area."

9. Fire engineer
A worker pointing

Narai Chal/Getty Images

Salary: $110,000

Growth in job postings: 136%

Mentions of remote/hybrid in job postings: 12.4%

8. Clinical psychologist
Close-up of two people

Fiordaliso/Getty Images

Salary: $118,597

Growth in job postings: 75%

Mentions of remote/hybrid in job postings: 34.6%

The Bureau of Labor Statistics said people typically need a doctoral or professional degree for entry into clinical and counseling psychologist jobs. BLS also said there could be different licensing requirements by state to become a psychologist.

"Most psychologists need supervised experience to qualify for licensure, which may include an internship or postdoctoral training," BLS said. "These experiences provide an opportunity for prospective psychologists to use their knowledge in an applied setting."

7. Territory manager
People in a meeting

VioletaStoimenova/Getty Images

Salary: $80,348

Growth in job postings: 43%

Mentions of remote/hybrid in job postings: 19.9%

Davis said this job typically involves overseeing sales in a specific area or region, and may also help with training workers and guiding customer service.

"They'll often work with different departments to help increase the sales and revenue," Davis said.

6. Attorney
Lawyer

Chris Ryan/Getty Images

Salary: $145,168

Growth in job postings: 90%

Mentions of remote/hybrid in job postings: 28.6%

This typically high-paying job usually requires several years of law school.

"Newly hired attorneys usually start as associates and work on teams with more experienced lawyers," the Bureau of Labor Statistics said.

5. Estimator
Closeup of a person using a calculator

Abdullah Durmaz/Getty Images

Salary: $99,592

Growth in job postings: 51%

Mentions of remote/hybrid in job postings: 6.8%

4. Civil engineer
Engineers standing outside and looking at a building

Me 3645 Studio/Getty Images

Salary: $100,872

Growth in job postings: 104%

Mentions of remote/hybrid in job postings: 12.2%

The Bureau of Labor Statistics said this job typically requires a bachelor's degree for entry.

"Employers usually prefer to hire graduates of civil engineering programs accredited by ABET," the Bureau of Labor Statistics said. "Some students attend schools that have cooperative-education programs (also known as co-ops); others participate in internships."

3. Physician
Doctor with a patient

MoMo Productions/Getty Images

Salary: $225,000

Growth in job postings: 76%

Mentions of remote/hybrid in job postings: 5.3%

Based on the Bureau of Labor Statistics, physicians typically require a doctoral or professional degree, and the typical on-the-job training needed for competency is participating in internships or residency programs.

2. Sales representative
People shaking hands

VioletaStoimenova/Getty Images

Salary: $182,487

Growth in job postings: 76%

Mentions of remote/hybrid in job postings: 15.7%

"I always consider one of the greatest entry-level point jobs for folks who are either looking to break into more of the corporate world or career changers," Davis said about sales representatives. "I think it's really common to see a lot of folks that might have been teachers in a past life, for example, switching over to sales."

1. Veterinarian
A dog with a veterinary worker

Monty Rakusen/Getty Images

Salary: $139,999

Growth in job postings: 124%

Mentions of remote/hybrid in job postings: 7.3%

The increase in pet ownership is impacting some Americans' spending and could also be partly behind the demand for veterinarians. Davis said this job has seen substantial growth over the past few years, based on Indeed's data.

"Similar to mirroring the aging human population, there's also this growing and aging population for pets as well, which may kind of contribute to some of the different advancements that we're seeing in veterinary medicine and furthering the need for this care," Davis said.

Read the original article on Business Insider

The secret to a successful workplace: middle managers

13 January 2025 at 02:05
a chain of paper dolls with ties, with two missing from the center

iStock; Rebecca Zisser/BI

  • Middle managers have a vital job in the workplace.
  • Some companies have scaled back on middle management.
  • Workplace experts shared why middle managers can be essential to a business's success.

US businesses are betting that they can thrive with fewer middle managers. They could come to regret it.

Some business leaders think scaling back middle-manager roles β€” a trend called the "Great Flattening" β€” could help them cut costs and operate more efficiently. Managers and workplace experts, however, told Business Insider that middle managers can play several important roles, including executing the goals of upper management, addressing workplace issues, and boosting workers' morale and performance.

"They really do form the connection between the company's strategy and execution by workers on the front lines of the business," Daniel Zhao, the lead economist at Glassdoor, said. "Without an effective layer of middle management, you aren't going to get strategy translating into results."

BI's Aki Ito reported that some companies had found that employing fewer middle managers could significantly strain their operations. Workplace experts and managers described to BI what makes middle managers important, why companies should invest in training them, and the challenges of these roles.

Why workplace experts think middle managers are valuable

Bryan Hancock, a McKinsey partner who has written about management, said middle managers are critical for an organization's overall performance. Hancock also emphasized their role in employees' performance and well-being, including helping workers grow in their careers.

"Managers are critical in making individuals feel like they belong, feel understood, and connecting all of that messiness of our personal life to our work life," Hancock said.

Middle managers can be a key part of building up the entire workforce. "Companies have to invest in the skillset and the development of these managers in order to avoid certain pitfalls that can ultimately impact revenue generation and career development and growth," Jessica Hardeman, a senior director of attraction and engagement at the career site Indeed, said, adding "heightened emotional maturity," digital fluency, and adaptability were attributes of a good manager.

While Zhao, Hardeman, and Hancock say managers are critical to a workplace, the job market for middle managers has cooled down.

An analysis of job postings provided to Business Insider by Revelio Labs, a workforce analytics provider, found opportunities for middle-manager roles declined by 42% from April 2022 to October 2024. Opportunities for junior employees, associate workers, and senior leadership roles fell by 15%, 17%, and 25%, respectively.

With fewer opportunities in middle management and a cooler job market expected in 2025, middle-manager job seekers are competing for other roles.

"Career setbacks have created a traffic jam at the bottom of the ladder, with middle managers now competing in the same pool of jobs as frontline managers and experienced employees in the same pool as new grads," a Glassdoor report published in November said.

In addition to the cooler demand for middle managers, the job has become more challenging in recent years. Managers may have had to handle more work because of fewer hires, tried to get people to comply with return-to-office policies, and been the bearers of unfortunate compensation and career mobility news with scalebacks in pay bumps and promotions.

Workplace experts said managers should receive adequate training to help make their jobs a bit more manageable. Zhao said companies should invest in training the next leaders to set them up for long-running success in this step of the career ladder.

Why managers think they are valuable

Managers who talked to BI also said middle management does a lot for the workplace.

Tsvetelina Nasteva, a human resources manager for Casinoreviews.net, said the idea that middle managers just deal with the "day-to-day stuff" upper management doesn't have time for oversimplifies what they do.

"Our jobs are so much bigger than that," said Nasteva, who's in her 30s. "We're the ones driving innovation, shaping culture, engaging talent, and providing the insights that help steer the ship."

Kyle, a former manager, said he thought middle managers could be valuable for businesses β€” but often weren't given the power and freedom to fully execute their job responsibilities.

"I think the great lie told to middle managers, at least many of them, is that they can be arbiters of change and will be free to mold their teams and processes in their own style β€” except then that's not how they're treated," said Kyle, who asked for partial anonymity because of a fear of professional repercussions.

He said that instead, some middle managers were largely tasked with things like time-sheet approvals, disciplinary conversations, and running meetings β€” administrative work upper management doesn't have time for.

Tiago Pita, a brand and e-commerce director in the UK, said he decided to step into a middle-management role because he wanted to shape his team's direction while still being involved in day-to-day operations. He said juggling these two priorities is what makes middle managers valuable.

"We're the ones translating high-level goals into actionable tasks, ensuring that our teams stay on track and motivated," said Pita, who's in his 30s. "Middle managers also play a big role in sustaining company culture, as we work closely with team members and address their questions, struggles, and achievements on a more personal level than upper management can."

What has your middle management experience been like? Have you quit a middle manager role or don't plan to become a manager? Reach out to these reporters at mhoff@businessinsider.com and jzinkula@businessinsider.com.

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The US economy ended 2024 with a bang, adding more jobs than expected in December while unemployment ticked down

10 January 2025 at 05:32
People standing in line for a job fair

Joe Raedle/Getty Images

  • The US economy added 256,000 jobs in December, more than the forecast of 164,000.
  • Unemployment was expected to hold steady at 4.2% but fell to 4.1%.
  • Economists expect 2025 to be a tough labor market for job searchers.

The US labor market ended 2024 on a high note, adding 256,000 jobs in December, above the forecast of 164,000.

Unemployment unexpectedly dropped from 4.2% in November to 4.1% in December. The consensus expectation was that the rate would hold steady.

"We are very proud of our ability to leave with such a strong labor market," Acting Secretary of Labor Julie Su told BI. "People have come into the labor market and are looking for jobs β€” and they're finding them."

Cory Stahle, an economist at the Indeed Hiring Lab, said there were some concerns in the job market at the start of 2024, but the data indicated signs of equilibrium in the second half.

"In the first half of 2024, we saw unemployment start rising, and it was a pretty good cause for concern," Stahle said. "But then in the back half of the year, we've seen that the unemployment rate has really stabilized."

Labor force participation remained at 62.5% in December. The employment-population ratio increased from 59.8% in November to 60% in December.

Wage growth cooled slightly. Average hourly earnings increased to $35.69 in December, a 3.9% increase from a year earlier. Earnings rose by 4.0% in October and November.

Many sectors saw job growth, especially in healthcare. However, manufacturing, mining and logging, and utilities lost jobs in December.

The new jobs report likely won't derail the Federal Reserve's widely expected pause in its interest-rate easing campaign at its coming meeting after three rate cuts in a row.

CME FedWatch, which shows what traders think will happen to interest rates based on market activity, indicated after the jobs report a 97% chance that rates wouldn't be changed in the first scheduled Federal Open Market Committee meeting of 2025 on January 28 and 29, up from around 93% before the jobs report. There are eight scheduled FOMC meetings in 2025, but the Committee's members signaled in December that the Fed plans only two cuts this year.

In a press conference after the December meeting β€” where the Fed cut rates by 25 basis points β€” Fed chair Jerome Powell said that "the labor market is now looser than pre-pandemic" and is gradually still cooling down. He added further cooling isn't needed to reach the Fed's 2% inflation target.

"We're starting to see evidence that the Fed's 100 basis points of cuts are translating into real improvements, improvements in the real economy," Julia Pollak, chief economist at ZipRecruiter, said. "While the labor market often lags behind quite substantially, it seems like perhaps the labor market rebound is starting to take hold."

Economists predict the job market in 2025 will be challenging for job searchers, and employers might be cautious in their hiring plans during the start of the year.

"While business sentiment has picked up somewhat since the election, there is still a lot of uncertainty about future policy changes that will likely make businesses hesitant to ramp up hiring, particularly in the first half of 2025," Dante DeAntonio, a labor economist with Moody's Analytics, said in a written statement in 2024.

The new data could provide a little more optimism. Stahle said even if the labor market is cooler than in recent years, "we're really going into the year with a decent amount of momentum."

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2 charts show the LA neighborhoods hit by wildfires were left exposed by recent insurance rollbacks

An animated image of a Los Angeles firefighter during the Palisades fire
A Los Angeles firefighter battles the Palisades fire

Reuters

  • Thousands of LA County homeowners face a volatile home insurance market.
  • In recent months, State Farm β€” California's largest home insurer β€” dropped thousands of policyholders.
  • Some have turned to the state's insurer of last resort.

Thousands of California homeowners at risk due to the Los Angeles County fires find themselves exposed in a volatile home insurance market.

Last year, California's largest home insurer β€” State Farm β€” canceled thousands of policyholders' plans across LA County, including the Pacific Palisades and parts of Santa Monica and Calabasas, that are under evacuation orders and warnings as the fires rage. Nearly 70% of State Farm policyholders in the affluent Pacific Palisades neighborhood were dropped by the company beginning in July 2024.

The following table shows the ZIP codes that were under evacuation orders or warnings as of Wednesday afternoon that had the highest rate of nonrenewals from State Farm last year.

Several other major insurers have dramatically restricted their coverage across California in recent years, citing surging costs from more frequent and intense disasters coupled with rising home repair costs and inflation.

Thousands of LA County homeowners who haven't been able to obtain private insurance have joined the ranks of those covered by the state's insurer of last resort β€” the Fair Access to Insurance Requirements (FAIR) plan. The FAIR plan is regulated by the state government and backed by a slew of private insurance companies. But its premiums tend to be much higher than typical private insurers and its coverage is often more restricted.

This table shows how FAIR insurance coverage has changed in the above ZIP codes between 2023 and 2024.

As private insurers have stepped back in recent years, the number of residential FAIR plan holders across the state jumped 123% between September 2020 and September 2024. The FAIR plan's dollar-value residential exposure surged from $271 billion in September 2023 to $431 billion in September 2024.

It's not clear how many homeowners impacted by the LA County fires are uninsured. Most mortgage lenders require homeowners to purchase insurance, and some require additional insurance for specific disasters, including fires.

Some major home insurers, including Farmer's β€” the second-largest in California β€” have recently begun to expand their offerings in California after the state announced new regulations requiring insurers to cover a certain percentage of homes vulnerable to fire in exchange for allowing them to use future risk modeling to calculate premiums.

In 2023, California had the fourth-highest home insurance nonrenewal rate among states, according to a recently released Senate Budget Committee report. Six of the top 10 counties in the country with the highest rates of nonrenewals by large home insurers in 2023 were in California, the report found.

But rising home insurance costs and rates of dropped policies are nationwide problems. The National Bureau of Economic Research recently reported that average home insurance premiums spiked by 13%, adjusted for inflation, between 2020 and 2023. The share of home insurance policies from large insurers that weren't renewed increased last year in 46 states, the Senate report found. And more than 200 US counties saw their non-renewal rates spike threefold between 2018 and 2023.

Areas more vulnerable to disasters, including flooding, wildfires, and hurricanes, have seen the biggest spikes in premiums and dropped policies.

"Our number one priority right now is the safety of our customers, agents and employees impacted by the fires and assisting our customers in the midst of this tragedy," a representative for State Farm told BI.

A representative from the California FAIR Plan Association also told BI in a statement that the insurer is "prepared" to handle the wildfire impact, and "has payment mechanisms in place, including reinsurance, to ensure all covered claims are paid."

Representatives for Farmer's did not respond for comment.

Have you been dropped by your home insurance company or are you facing a steep premium increase? Email this reporter to share your story: erelman@businessinsider.com.

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Here's what a $100,000 salary actually gets you in 25 Texas cities

7 January 2025 at 07:30
Texas flag in the foreground and buildings in the background

RoschetzkyIstockPhoto/Getty Images

  • Business Insider looked at the purchasing power of a six-figure salary in different Texas cities.
  • We adjusted $100,000 for Texas' 25 metro areas using cost of living data from the Bureau of Economic Analysis.
  • Based on 2023 data, the purchasing power of $100,000 would be $102,438 in the Austin metro area.

One of Texas' big draws for the thousands of Americans who move there each year is its relatively low cost of living.

However, purchasing power isn't the same across Texas metros. If you had $100,000 in Austin, it wouldn't have the same value as in Longview, Corpus Christi, and other places in the state.

To compare people's purchasing power depending on where they are, Business Insider calculated what $100,000 means for each Texas metropolitan statistical area when adjusted by its regional price parity. That gives a sense of how much $100,000 at national average prices would actually buy in those cities based on their local cost of living.

Most of the 25 metros in the state had regional price parities below 100 in 2023, data from the Bureau of Economic Analysis showed. That means their price levels were less than the national average.

"Whether you are considering a job offer in a more expensive city, looking for an affordable place to retire, or are just curious about how price levels compare between different parts of the country, our regional price parities can help," Vipin Arora, the director of the Bureau of Economic Analysis, said in a December post.

Texas has long been an attractive state for movers. Census Bureau data showed Texas had the largest positive net domestic migration β€” or the biggest number of people moving in from elsewhere in the US minus people leaving Texas for another state β€” from July 1, 2023, to June 30, 2024, among states.

Data from the Bureau of Labor Statistics shows that many kinds of healthcare workers make over $100,000 on average in Texas. Ship engineers, postsecondary business teachers, and management analysts are a few of the other jobs that make over $100,000 on average in the Lone Star State.

The Dallas metro area had the highest regional price parity among the 25 Texas metros. Given the regional price parity for Dallas was 103.3 in 2023, that would mean the adjusted value of $100,000 at average national prices equals around $96,800 in that city.

Below is what $100,000 is worth in cities across Texas, ranked from lowest adjusted value to highest. We also included the 2023 regional price parity for each metro in Texas.

25. Dallas-Fort Worth-Arlington
Dallas, Texas
Dallas.

f11photo/Getty Images

Regional price parity: 103.293

$100,000 adjusted by RPP: $96,812

24. Houston-The Woodlands-Sugar Land
Houston, Texas
Houston.

ANDREY DENISYUK/Getty Images

Regional price parity: 100.220

$100,000 adjusted by RPP: $99,780

23. Austin-Round Rock-Georgetown
Texas State Capitol in Austin
Texas State Capitol in Austin.

Duy Do/Getty Images

Regional price parity: 97.620

$100,000 adjusted by RPP: $102,438

22. Midland
Midland, Texas

DenisTangneyJr/Getty Images

Regional price parity: 94.761

$100,000 adjusted by RPP: $105,529

21. San Antonio-New Braunfels
San Antonio, Texas
San Antonio.

Sean Pavone/Getty Images

Regional price parity: 93.727

$100,000 adjusted by RPP: $106,693

20. Tyler
Smith County Courthouse in Tyler, Texas
Smith County Courthouse in Tyler, Texas.

BOB WESTON/Getty Images

Regional price parity: 92.386

$100,000 adjusted by RPP: $108,242

19. Odessa
Odessa, Texas

DenisTangneyJr/Getty Images

Regional price parity: 92.056

$100,000 adjusted by RPP: $108,630

18. Sherman-Denison
Water tower that says Sherman on it

Edward H. Campbell/Shutterstock

Regional price parity: 91.804

$100,000 adjusted by RPP: $108,928

17. Killeen-Temple
Killeen, Texas
Killeen.

Jacob Boomsma/Shutterstock

Regional price parity: 91.761

$100,000 adjusted by RPP: $108,979

16. Corpus Christi
Corpus Christi, Texas

Sean Pavone/Shutterstock

Regional price parity: 91.306

$100,000 adjusted by RPP: $109,522

14 (tie). San Angelo
Eggemeyer's General Store in San Angelo, Texas

Holger Leue/Getty Images

Regional price parity: 90.869

$100,000 adjusted by RPP: $110,049

14 (tie). Lubbock
Lubbock, Texas

DenisTangneyJr/Getty Images

Regional price parity: 90.869

$100,000 adjusted by RPP: $110,049

13. Amarillo
Amarillo, Texas

halbergman/Getty Images

Regional price parity: 90.812

$100,000 adjusted by RPP: $110,118

12. Waco
Waco, Texas

Jacob Boomsma/Shutterstock

Regional price parity: 90.786

$100,000 adjusted by RPP: $110,149

11. College Station-Bryan
College Station, Texas
College Station.

TriciaDaniel/Getty Images

Regional price parity: 90.701

$100,000 adjusted by RPP: $110,252

10. Victoria
Victoria County Courthouse in Victoria, Texas

Tricia Daniel/Shutterstock

Regional price parity: 90.631

$100,000 adjusted by RPP: $110,338

9. El Paso
El Paso, Texas

DenisTangneyJr/Getty Images

Regional price parity: 90.241

$100,000 adjusted by RPP: $110,814

8. Beaumont-Port Arthur
Beaumont, Texas
Beaumont.

halbergman/Getty Images

Regional price parity: 90.238

$100,000 adjusted by RPP: $110,818

7. Abilene
Buildings in Abilene, Texas

Aaron Yoder/Getty Images

Regional price parity: 89.849

$100,000 adjusted by RPP: $111,298

6. Wichita Falls
Buildings in Wichita Falls, Texas

DenisTangneyJr/Getty Images

Regional price parity: 88.914

$100,000 adjusted by RPP: $112,468

5. Longview
Pelaia Plaza in Longview, Texas

Nina Alizada/Shutterstock

Regional price parity: 88.417

$100,000 adjusted by RPP: $113,100

4. Laredo
Laredo, Texas

DenisTangneyJr/Getty Images

Regional price parity: 87.786

$100,000 adjusted by RPP: $113,913

3. McAllen-Edinburg-Mission
McAllen City Hall in Texas

DenisTangneyJr/Getty Images

Regional price parity: 85.555

$100,000 adjusted by RPP: $116,884

2. Texarkana
A sign that shows the state of Texas on the left, Arkansas on the right, says "state line" in the middle of it, and says "Texarkana" above that

K.Woolf/Shutterstock

Regional price parity: 85.308

$100,000 adjusted by RPP: $117,222

1. Brownsville-Harlingen
Buildings in Brownsville, Texas
Brownsville.

DenisTangneyJr/Getty Images

Regional price parity: 85.183

$100,000 adjusted by RPP: $117,394

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Here's what to expect for raises, promotions, and job-seeking in 2025

5 January 2025 at 01:16
a group of workers with money flying around

Liam Eisenberg for BI

  • Economists talked to Business Insider about what they expect to happen in the job market this year.
  • Getting a white-collar job could still be hard, and more people may have to return to the office.
  • Changes under a new administration could affect hiring and turnover.

Getting a job was tough for many Americans in 2024. If a career shift is your New Year's resolution for 2025, you might still find it challenging.

Job growth has slowed, unemployment has been historically low but rising, and unemployed Americans are staying jobless for longer.

"Heading into 2025, it is going to be a little harder for job seekers across the board," Cory Stahle, an economist at the Indeed Hiring Lab, said in December. "We've seen that just about every category on Indeed has come down year over year in terms of the number of job postings. So that suggests that employer demand has cooled."

Nela Richardson, ADP's chief economist, described the labor market in 2024 as unusually stable and quiet. She pointed to steadily low layoffs and a drop in voluntary turnover amid cooler hiring.

"The stasis is rather abnormal, and I think it's going to make it tough for workers who are looking for new opportunities to find them," Richardson said.

Here's what economists expect when it comes to finding a job, wages and promotions, and other aspects of work life in 2025.

A new administration could bring uncertainty

One reason it's still going to be hard for job searchers to land a job is employers may want to see what policies President-elect Donald Trump pursues early in his second term.

"While business sentiment has picked up somewhat since the election, there is still a lot of uncertainty about future policy changes that will likely make businesses hesitant to ramp up hiring, particularly in the first half of 2025," Dante DeAntonio, a labor economist with Moody's Analytics, said in a written statement.

A potential crackdown on immigration could affect industries with a higher share of immigrant workers, like the construction sector. DeAntonio said those industries "may find themselves scrambling for workers if material changes to immigration policy are enacted." DeAntonio noted the leisure and hospitality industry and agriculture as two others that have historically depended on immigrant labor and could be affected by changes.

The new administration could also affect government workers and job seekers. Trump's Department of Government Efficiency, led by Elon Musk and Vivek Ramaswamy, is figuring out suggestions for cutting federal spending and regulations.

"A drastic reduction in federal regulations provides sound industrial logic for mass head-count reductions across the federal bureaucracy," Musk and Ramaswamy wrote in an op-ed published by The Wall Street Journal.

Employment growth in the federal government has cooled down. Between November 2022 and November 2023, the federal government added 77,000 jobs but just 49,000 the following year.

"Depending on how things go with the new administration, we may see a lot of government workers either losing their jobs or quitting," Brian Rose, senior US economist for UBS's chief investment office, said. "This could be an opportunity for private sector companies to pick up some skilled workers."

Getting a job in a white-collar industry may still be a challenge

Richardson said white-collar job seekers, like those searching for tech roles, should be ready to network and for it to take more time to get a job.

"It's not that these jobs don't exist, and it's not that there's not opportunities out there, but the opportunities that people had gotten used to prior to 2024 have slowed," Richardson said. "This economy coming out of the pandemic really thrived on tech jobs."

DeAntonio said white-collar industries "are likely to remain at the top of the list as difficult for job seekers to enter as those firms have been some of the most cautious in terms of hiring."

Stahle said there are still a lot of jobs available in construction and manufacturing, even if opportunities have slowed from a year or two ago. However, Stahle said software development, marketing, and other knowledge-work jobs "have been hit much harder" by the job market slowdown.

"I think it's going to continue to be kind of a divergence in the labor market where some job seekers will have an easy time next year, albeit a little harder than last year, and then some are going to have a harder time than they've had in a few years," Stahle said in a 2024 interview.

Healthcare, manufacturing, and construction will probably be good places to look for work

Rose said the difficulty of landing work depends on someone's job experience and field of work. While hiring might continue to be rough in finance and tech, construction is one industry that needs workers.

Rose said construction and skilled workers for smaller companies are in high demand. He also thinks lower-paying jobs are in demand.

"If you're in healthcare or the skilled trades, you're in the right place," Julia Pollak, chief economist at ZipRecruiter, said. "If you're anywhere else, you might want to reevaluate your career choices and look into re-skilling and broadening your search."

Healthcare has had large job growth relative to other industries and has largely maintained its growth rate even as broader hiring has slowed.

Richardson sees a hopeful outlook for the interest-rate-sensitive manufacturing sector as the Federal Reserve has cut rates in its last few meetings.

"As we're seeing the Fed continue to try to draw down rates, manufacturing might benefit from that, and new sources of technology and tech advancement, that leads to more hiring in the sector," Richardson said.

More workers might have to head back to the office

AT&T said in December that it wants its office workers fully back to the workplace. Amazon also told employees they need to fully work from the office, but it has delayed the January 2 deadline for some.

"We are likely to see a continuation of the mixed bag of workplace policy changes that occurred this year," DeAntonio said. "Some firms will undoubtedly make a stronger return to office push, especially now as workers seem less inclined to switch jobs as they have in recent years."

Despite those moves, the share of white-collar employees working outside the office has risen. Bureau of Labor Statistics data showed that 46% of management, business, and financial operations occupations worked remotely at least part of the time in November 2024, up from 41% a year prior.

Real wage growth could be strong this year

Stahle said the "outlook for raises and compensation is promising." However, he also said, "we don't want to see wages necessarily pick up to a point where they could fuel inflation."

Stahle said hiring needs to pick up, particularly for roles that haven't had robust growth, to have a soft landing, where inflation slows to the Fed's 2% target while unemployment and layoffs stay steady.

"We want to see people continuing to have decent wage growth, especially wage growth that keeps their purchasing power up and above inflation," Stahle said.

The year-over-year increase in average hourly earnings was 4% in November, down from the growth rate in 2022 and the roughly 4.4% increase at the start of the year, although it's outpaced cooling inflation since mid-2023. Rose thinks wage growth will likely moderate further.

"There's just better balance in the labor market, so less need for companies to raise their wages to attract workers," Rose said about the current slowdown.

However, DeAntonio said if immigration policy changes occur, the labor market may become even tighter, "which will increase leverage for employees in seeking bigger pay increases."

The job market may be unfavorable for new college graduates

Stahle said the job market could be challenging for young people. The unemployment rate for recent college graduates aged 22 to 27 has been ticking up, but it falls short of the rate for those without a degree in this age group.

Rose thinks "recent college grads who went to some private college and spent a lot of money and looking for a high-paying, entry-level job to justify that investment" are having a tough time in the job market.

Are you worried about the job market in 2025, making a career change, or have an interesting career story to tell? Reach out to this reporter at mhoff@businessinsider.com.

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2 charts show how spending on most kinds of alcohol has declined in recent decades — especially among young adults

3 January 2025 at 13:52
Clinking cocktails
Alcohol consumption trends have been on the decline for years, even before the US Surgeon General said alcohol is a leading cause of cancer.

semenovp/Getty Images

  • The US Surgeon General released a report directly linking alcohol to cancer.
  • A BI analysis found that spending on most kinds of alcohol has declined β€” especially among young adults.
  • It's reflective of Gen Z's shifting habits when it comes to alcohol consumption.

By the time the US Surgeon General dropped its report linking alcohol to cancer on Friday, Americans had already been curbing their spending on booze over the last several decades β€” especially young people.

Surgeon General Vivek Murthy said in his latest advisory that alcohol consumption is the third leading preventable cause of cancer in the US, following tobacco usage and obesity. He recommended updating warnings on alcohol packages to raise awareness of the harmful effects of drinking. However, doing so requires an act of Congress.

"For individuals, be aware that cancer risk increases as you drink more alcohol," Murthy wrote in a post on X on Friday. "As you consider whether or how much to drink, keep in mind that less is better when it comes to cancer risk."

Do you plan to change your drinking habits in response to the Surgeon General's recommendation? Tell us why in this survey.

Many Americans have already been cutting back. Business Insider analyzed alcohol spending data from the Bureau of Economic Analysis and the Bureau of Labor Statistics to get a sense of how alcoholic beverage consumption has changed. It showed that spending has decreased over the past few decades, especially among Americans under 25.

With spirits and beer in particular, Bureau of Economic Analysis data shows that personal spending as a share of personal consumption expenditures has dropped since 1959. Spending on wine as a share of personal spending, meanwhile, has seen a small uptick.

Additionally, expenditure data adjusted to 2023 dollars using the consumer price index shows that younger adults under 25 years old spent less on average than this age group years prior. Bureau of Labor Statistics data shows that spending on alcoholic beverages by Americans under 25 is similar to people aged 75 and over.

The decrease in alcohol spending among young people is reflective of Gen Z and millennials' shifting habits and priorities compared to other generations. A Gallup survey from 2023 found that 62% of adults under 35 said they drink, compared to 72% two decades ago, with some of them citing health concerns as a key reason.

Gen Z is also favoring more active settings like fitness groups to socialize instead of drinking, marking a shift in younger Americans' behaviors.

It's unclear how the alcohol industry will respond to Murthy's latest report. However, warning labels on alcoholic drinks have not been updated since the '80s, and Murthy urged Congress to take action by updating labels and revising recommended consumption limits to prevent cancer among the US population.

Read the original article on Business Insider

Millions of workers in 21 states are set to get a raise at the start of 2025

31 December 2024 at 01:30
a custodian mopping a classroom
Minimum wage workers in 21 states are set to get a raise in January.

Dusan Stankovic/Getty Images

  • Minimum-wage workers in California, Vermont, and 19 other states will earn more at the start of 2025.
  • Missouri voters passed a referendum in the November election raising the state's minimum wage.
  • An analysis found over 9 million workers will likely be affected by the coming minimum wage increases.

Workers in 21 states are set to start the new year with a raise.

When the clock strikes midnight on New Year's Eve, minimum wages across the nation are set to be hiked. In a few states, the minimum wage will rise to $15 an hour, a longtime target rate for advocates.

Hover over the states in the map below to see how much minimum wages will change.

Of the 21 states that will see an increase, 14 are subject to inflation-based adjustments as part of existing minimum wage laws, per a report from the left-leaning think tank Economic Policy Institute. The EPI report estimated that full-time impacted workers in those states will see their annual earnings increase by $420 on average.

In the November election, Missouri voters approved a referendum to increase the state's minimum wage to $13.75 on January 1, 2025, and then to $15 in 2026. Some small business owners in the state are reportedly already bracing for higher costs, and business groups there have already filed a legal petition to attempt to overturn the new proposition. Recent research has found that independent businesses are, on average, able to shoulder minimum wage increases β€” although higher minimum wages can lead to smaller restaurants shuttering.

A 2022 ballot initiative in Nebraska has the state on a similar trajectory, with workers set to get an increase to $13.50 in January 2025 and then a hike to $15 in 2026.

Alaska will increase the state's minimum wage to $11.91 on January 1 because of an inflation adjustment. Minimum wage workers will get another raise on July 1 because of a ballot measure in the recent election. The state minimum wage will rise to $13 in the summer, $14 the following July, and $15 in 2027. Its minimum wage would be adjusted for inflation after that.

Delaware and Virginia are the only states in the South that will see minimum wage increases at the start of the year. Five states in the South don't have minimum wage laws, and Georgia's minimum wage is below the federal minimum wage of $7.25, based on data from the Department of Labor. That means those states default to the federal minimum.

An analysis from the Economic Policy Institute found that over 9 million workers are set to directly and indirectly benefit from increased state minimum wages.

Out of those workers, just over 3 million are directly set to see their pay go up. Even more will be affected indirectly. Over 6 million workers are within 15% of the new minimum wage floor β€” which, per EPI, means their employers are likely to adjust their wages to compete for talent.

In addition to state minimum wage increases happening in almost two dozen states on January 1, the National Employment Law Project said 48 cities and counties will also have minimum wage increases that day.

Nationally, the federal minimum wage has sat untouched at $7.25 since 2009. President-elect Donald Trump has signaled that he could be open to changing that number, telling "Meet the Press" that he would consider raising the federal rate β€” although he noted that the cost of living across the country varies, making it difficult to enact one flat rate.

Mike Draper, the owner and founder of screen-printing and retail business RAYGUN, whose 10 stores include a location in Missouri, told Business Insider that minimum wage increases β€” like the one recently approved by that state's voters β€” could help bolster workers' spending power. Draper already pays his workers a starting wage of $15.50 an hour.

"This is different from a tax increase, or a rent increase, or a cost of goods increase. None of that money is going to go directly back into your community, for the most part," Draper said, adding: "Increases to worker pay is going to be felt immediately."

Are you set to see your wages go up on January 1? Contact these reporters at jkaplan@businessinsider.com and mhoff@businessinsider.com.

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An American living in Greece who has visited around 30 countries described why she doesn't want to move back to the US

28 December 2024 at 02:14
Greece

georgeclerk/Getty Images

  • American Kathleen O'Donnell said she felt at home the first time she visited Greece.
  • She moved away from the US in 2019 before settling full-time in Greece in 2022.
  • She likes Greece's food quality but doesn't like how car-centric the country can be.

Kathleen O'Donnell, 39, doesn't think she will ever move back to the US.

O'Donnell said she felt right at home when she visited Greece during an almost yearlong trip to Europe, Southeast Asia, and Australia in 2018 and 2019. After moving away from the US later on in 2019, she decided to be in Greece as much as she possibly could. She's been living in the country full time since applying for a digital nomad residence permit in May 2022.

"The longer that I live here, the happier I am, the more I love it, the more that I feel at home, and the more that I feel really sure that I found the perfect place for me to live right now," O'Donnell said.

She still loves visiting the US. Even though she's unsure if she will live in Greece for the rest of her life, she said it's unlikely she'll return permanently to the States.

"I just don't think that it has the quality of life that I could find in most other places these days," O'Donnell, who has been to around 30 countries, said. "The lack of sense of community is really what gets me. It's a very isolated society."

O'Donnell said she thinks it's an exciting time for people interested in moving to a different country because many places, like Brazil, Italy, and Thailand, offer digital nomad visas.

Kathleen O'Donnell
Kathleen O'Donnell said she has "a great quality of life" in Greece.

Kathleen O'Donnell

What O'Donnell likes and dislikes about Greece

O'Donnell said she likes the quality and affordability of food in Greece, including the produce at her local farmers market. She said the market can be noisy, but she enjoys getting the chance to become familiar with the people there.

"That sense of community is another pro," O'Donnell said. "Even in Athens, which is a very large city, it feels like a series of small villages. You really get to know people around you."

She said she had become friends with many of her neighbors since moving to her apartment earlier this year.

O'Donnell also thinks it's easy to travel elsewhere, given Athens International Airport, and enjoys the country's weather.

Meanwhile, she finds getting a residence permit takes a long time. She said it took around half a year for a two-year permit to be approved and another month to get it.

"The date of that permit starts when you apply, not when you get it," she said, adding. "and you can't go anywhere but your home country in that time and you can't even travel through most of Europe."

She's waiting for her renewal, which she thinks could take at least a year. "In the meantime, you're just very restricted about what you can do, and that's pretty frustrating," she said.

O'Donnell also plans to buy an apartment and has found that this is taking a while.

"It's just a simple one-bedroom apartment, and it will probably take a full two years to complete this very typical purchase, which is just wild," she said. "I've been trying to buy a place since December 2021."

She also thinks that while Athens is vibrant and lively, it's car-centric, and the sidewalks could be improved. She thinks getting around is tough because she doesn't have a vehicle and likes walking.

Despite the cons, she said she still loves Athens and Greece overall.

"I am so happy here," she said. "I just have such a great quality of life. It's very different from the US."

What has your moving or travel experience been like? Share with this reporter at mhoff@businessinsider.com.

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6 things you could be doing wrong if you're struggling to get a job

26 December 2024 at 03:42
A person in a job interview

PixeloneStocker/Getty Images

  • The labor market is softening, and it might be harder to get a job compared to the past.
  • Business Insider talked to job experts about why applicants might struggle to get hired for a role.
  • A poorly organized rΓ©sumΓ© or not learning about a company during interview prep could be issues.

If you're not hearing back after applying for jobs, you may need to make some changes to your rΓ©sumΓ©, interview prep, or search strategy.

A cooler labor market means it could be harder to find a job now than a couple of years ago. Bureau of Labor Statistics data shows there were 1.1 job openings per unemployed person this past October, the latest month with data, compared to 1.3 job openings per unemployed person a year earlier.

Stacie Haller, the chief career advisor with ResumeBuilder.com, said she thinks "people aren't necessarily as prepared when they enter a job search today" because they may think the job market is the same as it was many years ago.

But for job seekers who are struggling, there are ways you can try to improve your odds. Below are some things that you may want to change if you aren't landing a job.

You are sending out way too many rΓ©sumΓ©s

One issue could be you're sending out a bunch of rΓ©sumΓ©s, including for jobs you don't even want or for jobs where you don't have the desired experience. Haller suggested having most of what an employer is looking for before applying to the role.

"I would prefer people to not send out 800 rΓ©sumΓ©s just throwing spaghetti against the wall," Haller said. "That's when you hear from people, 'It's a horrible market, and I can't get a job.'"

Gabrielle Davis, a career trends expert at Indeed, told Business Insider people should first consider the things that matter to them in a job beyond a paycheck, such as the benefits and whether it's remote, instead of first applying to many roles.

"I think that when job seekers function from maybe a place of slight panic, they don't do that because they feel like, 'I just have to move fast because the market's moving fast. I have to get all the stuff in, and I'm just going to see what sticks,'" Davis said. "And that's not always really fruitful for them. So I think that it's better to take a much more intentional approach to the actual job search."

You are waiting too long to apply

OK, so you have decided to send out fewer rΓ©sumΓ©s that are more focused on gigs you want. Now, don't wait too long to actually apply.

Haller said job seekers should reply to a job posting within 24 hours "to at least have a shot to be in the mix."

Haller said people come to her and say, "'Oh, I saw a job posting that I'm interested in.' And they take days, if not a week, to reply."

She added, "By the time they send their rΓ©sumΓ© out, that company's probably on final interviews."

You might need to reconsider the contents or format of your rΓ©sumΓ©

Six seconds. That's how long Haller said job seekers have "to capture somebody's attention by your rΓ©sumΓ© or by your profile."

Formatting could be important to consider when putting together a rΓ©sumΓ© in hopes of successfully landing work.

"You need to know how to create and format a rΓ©sumΓ© that works in today's job search process," Haller said, adding this "means the formatting should be cleaned, standardized, and easy to read."

Leanne Getz, vice president of tech staffing firm Experis's delivery channels, said the rΓ©sumΓ© should also be similar to things noted on a candidate's online profile, like on LinkedIn. She also said rΓ©sumΓ©s should be accurate and be in their own words.

"We're seeing candidates utilizing certain AI tools to generate the rΓ©sumΓ©, and it's fine to use it to help guide or give you suggestions, but you want to be careful about having something like ChatGPT design your whole rΓ©sumΓ©," Getz said. "It's easy for recruiters to pick up on that. It doesn't seem authentic."

You are not considering your connections

There's more that can be done than uploading a rΓ©sumΓ© to a job application. Haller said job seekers may want to see who they can contact at the company beforehand.

Haller said, "The last thing you want to do is dump your rΓ©sumΓ© into" an applicant tracking system "if you have another way to make contact inside that company."

Getz noted people could consider who they may know at the place they're hoping to get a job when they are applying.

"It is often about the network and who you know, but it also is sometimes just a game of numbers," Getz said. "There are so many applicants. You have to just keep applying, be consistent, be persistent, be patient."

You are not doing sufficient prep for an interview

If you get the good news that an employer is interested in interviewing you, it's probably best to prepare for the interview with some research.

Haller said people should know the company's mission, why they even want to work for the employer, and prepare questions to ask during the interview.

"I've interviewed people as a hiring manager with people who have no idea what the company does or why they're even interested in a job," Haller said. "That's a waste of everybody's time."

Some helpful hints of what to say during the interview are in the job posting itself.

"The job posting tells you exactly what they're looking for," Haller said. "That's where your prep starts. So if you know what they're looking for, you want to prepare as many examples that you can about what they might ask in reference to what they're looking for in the person they hire."

Getz also talked about being prepared and other basics of interviewing. Getz said to make "sure that you're dressed professional, that you've prepared, that you've done your research on the company that you're interviewing with, that you have strong questions to ask, that you're prepared to answer behavioral style questions."

Don't do an interview from a car and eliminate any background noise, Getz also advised. Getz emphasized the basics of doing an interview because "it could be one of those minor, little things that knock you out of consideration that could have been overcome by simply being prepared, dressed for the interview."

Davis suggested preparing a few main points that you want to reiterate in every interview round. "If you're speaking to maybe two or three people at a company, just because you've spoken to the same people at one company doesn't always mean that they are sharing exactly what you've spoken about to their colleagues," Davis said.

She added those main points can help show your prep, and she said, "Any sign of preparedness to an employer means, OK, this person is showing up. They're here. They're taking it seriously."

You aren't sending a thank-you note, or you're following up too much

Davis said a handwritten thank-you note could be good if you did an in-person interview. Even if it was not an in-person interview, Davis said sending a simple thank-you note on the same day could be good.

Davis said the note should thank the person for their time and include something personal from the interview to show you were listening.

"I think that really goes a long way," Davis said. "And after that, it's kind out of your hands, so waiting to hear back from the recruiter or hiring manager and then going from there."

Getz said "to be cautious about how often you're following up" because you're not the only job candidate a hiring manager is talking to. She said people don't want to overdo their reach out, and it should be professional.

How long did it take you to find a job, or how long have you been unemployed? Reach out to this reporter to share your experience at mhoff@businessinsider.com.

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The 10 deadliest jobs in the US

20 December 2024 at 01:02
Construction workers
Helpers in construction trades had a fatal work injury rate of 27.4 fatal injuries per 100,000 full-time equivalent workers in 2023.

schwartstock/Getty Images

  • Roofers, construction helpers, and grounds maintenance workers have higher fatal injury rates than many other jobs.
  • Last year, logging workers had the highest rate per 100,000 full-time equivalent workers at 98.9.
  • The overall rate dropped from 3.7 fatal injuries per 100,000 full-time equivalent workers in 2022 to 3.5.

Logging, transportation, and hunting work can be risky jobs in the US based on the latest fatal work injury rates released by the Labor Department.

The Bureau of Labor Statistics recently published data on fatal injuries at work in 2023 by industry and occupation.

Fatal injury rates at work were down overall last year. "A worker died every 99 minutes from a work-related injury in 2023 compared to 96 minutes in 2022," a news release from BLS on Thursday said.

Three civilian occupations had rates above 50 fatalities per 100,000 full-time equivalent workers. Logging workers had a fatal injury rate of almost 100 per 100,000 full-time equivalent workers in 2023, way above the overall rate of 3.5 fatalities per 100,000 full-time equivalent workers last year. That rate of 3.5 was a tick down from the rate of 3.7 in 2022.

Below are the 10 deadliest jobs in the US based on fatal work injuries per 100,000 full-time equivalent workers.

10. Structural iron and steel workers
Steel worker is working on a structure

Wood-n-Photography/Getty Images

Fatal work injury rate: 19.8

Number of fatal work injuries: 9

9. Miscellaneous agricultural workers
Farmers in a field

Thomas Barwick/Getty Images

Fatal work injury rate: 20.2

Number of fatal work injuries: 146

8. Grounds maintenance workers
A person on a riding lawn mower

Don Farrall/Getty Images

Fatal work injury rate: 20.5

Number of fatal work injuries: 226

7. Driver/sales workers and truck drivers
Two people standing by trucks

Mint Images/Getty Images

Fatal work injury rate: 26.8

Number of fatal work injuries: 984

6. Helpers in construction trades
Construction workers

schwartstock/Getty Images

Fatal work injury rate: 27.4

Number of fatal work injuries: 16

5. Aircraft pilots and flight engineers
Plane

Edwin Remsberg/Getty Images

Fatal work injury rate: 31.3

Number of fatal work injuries: 62

4. Refuse and recyclable material collectors
Garbage truck

Salameh dibaei/Getty Images

Fatal work injury rate: 41.4

Number of fatal work injuries: 41

3. Roofers
A person working on a roof and using a hammer

TerryJ/Getty Images

Fatal work injury rate: 51.8

Number of fatal work injuries: 113

2. Fishing and hunting workers
Two people outside near trees looking at a phone

Fly View Productions/Getty Images

Fatal work injury rate: 86.9

Number of fatal work injuries: 19

1. Logging workers
Close-up of someone cutting a tree

by Patricia Gee/Getty Images

Fatal work injury rate: 98.9

Number of fatal work injuries: 52

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The 15 most and least expensive cities in the US

17 December 2024 at 01:03
People walking in San Francisco
The metro area of San Francisco had the highest regional price parity in 2023.

Alexander Spatari/Getty Images

  • Ten of the 15 most expensive metros based on regional price parity data for 2023 were in California.
  • Miami and New York were two non-California metros with higher prices than the national average.
  • Some of the least expensive areas were in Arkansas.

The most expensive US metros are commonly found in California, while many of the least expensive ones can be found in the South.

The Bureau of Economic Analysis recently published regional price parity data for 2023. The figures for states and metros show how price levels of goods and services compare to the national average.

The metro area of Seattle had a regional price parity for goods and services of around 113 in 2023. That means prices were 13% more expensive than the national average, making it one of the metros with the highest regional price parities.

"Whether you are considering a job offer in a more expensive city, looking for an affordable place to retire, or are just curious about how price levels compare between different parts of the country, our regional price parities can help," Vipin Arora, the director of the Bureau of Economic Analysis, said in a post.

California was 12.6% more expensive than the national average in 2023, making it the state with the highest regional price parity.

Several Golden State metros had the highest regional price parities among the over 380 metro areas in the US. San Luis Obispo-Paso Robles was roughly 11% more expensive than the national average, and prices in San Francisco-Oakland-Berkeley were 18% higher than the average.

It's also especially pricey in the Seattle, New York, Miami, Boston, and Honolulu metro areas, rounding out the non-Californian metros with the highest regional price parities in 2023.

Pine Bluff, Arkansas, was around 20% less expensive than the national average, making it the metro with the lowest regional price parity in 2023. Arkansas had the lowest regional price parity among states last year.

Several other metros in Arkansas were among the least expensive areas in the US. Most of the 15 metros with the lowest cost of living were in the South.

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Americans will likely get one more interest rate cut this week before the year closes out

17 December 2024 at 01:01
Jerome Powell.

Getty Images; Jenny Chang-Rodriguez/BI

  • The Federal Reserve is expected to cut interest rates this week by 25 basis points.
  • Inflation has ticked back up in recent months, and economists think the job market is still robust.
  • The outlook for 2025 is more uncertain while the Fed waits to see how Trump will impact the economy.

The final interest-rate decision of the year is coming this week, and it's likely to give Americans some more financial relief.

On Wednesday, the Federal Open Market Committee is expected to announce another interest-rate cut. As of Monday afternoon, CME FedWatch, which estimates interest-rate changes based on market predictions, forecasts a close to 100% chance the Federal Reserve will cut rates by 25 basis points.

Data out last week showed overall inflation has sped up. The consumer price index's year-over-year growth rate rose from 2.4% in September to 2.6% in October before climbing to 2.7% in November. Core CPI, which excludes volatile food and energy prices, has been holding steady, with a year-over-year change of 3.3% from September to November.

Jerome Powell, chair of the Fed, said at The New York Times' DealBook Conference on December 4 that "we're in a very good place with the economy," but inflation is still not quite where the central bank wants it to be.

"The labor market is better, and the downside risks appear to be less in the labor market, growth is definitely stronger than we thought, and inflation is coming a little higher," Powell said. "So the good news is that we can afford to be a little more cautious as we try to find neutral."

Slower job growth and higher unemployment may add fuel to the argument for continuing to cut, while a tighter-than-expected labor market could lead the central bank to pause while waiting to see if wage growth and inflation speed up.

"I don't think there's that much cause for concern in the labor market data that would lead to them suspending their plan to cut," Julia Pollak, the chief economist at ZipRecruiter, told Business Insider.

Pollak said the quits rate, the latest reading of which was 2.1% in October, is "consistent with a non-inflationary labor market" and that "wage growth at 4% over the year should be sustainable given current productivity growth." Cory Stahle, an economist at the Indeed Hiring Lab, said the US economy continues to add jobs above population growth and has low unemployment.

The unemployment rate increased from 4.1% to 4.2% in November. The three-month average job gain in November was around 173,000, lower than early 2024 but still strong.

"There are still many reasons to be optimistic about the labor market, but also you don't, as a Federal Reserve policymaker, you don't want to wait until things start looking bad to react to that because by then, you might be too late," Stahle said.

The interest rate outlook for 2025 is a bit more uncertain. President-elect Donald Trump has already posed broad tariff threats on key trading partners with the US, including China, Canada, and Mexico. If he implements those tariffs, consumers would likely face higher prices on impacted goods. The Fed could respond to inflationary trade pressures by once again raising interest rates.

However, Powell has so far declined to comment on any policy changes the Fed would consider in response to Trump's tariff threats, saying during the DealBook conference that too much about what Trump might do with tariffs is unknown.

"We can't really start making policy on that at this time. That is something that lies well into the future. We have to let this play out," Powell said, emphasizing that the Fed is making decisions about what's happening in the economy now and not six months from now.

Still, some economists expect 2025 to be another strong year for the economy. Gregory Daco, the chief economist at EY, said that the US "remains on a solid growth trajectory supported by healthy employment and income growth, robust consumer spending, and strong productivity momentum that is helping tame inflationary pressures."

"We expect these positive dynamics will carry into 2025 allowing the Fed to pursue gradual, but cautious, policy recalibration," Daco said in written commentary.

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Influencers are putting together their post-TikTok plans as a potential ban looms

14 December 2024 at 04:19
Joseph Arujo
Lifestyle and fashion creator Joseph Arujo said he no longer solely relies on TikTok for his business.

Joseph Arujo

  • TikTok faces a potential ban in the US if ByteDance doesn't divest by January 19.
  • The ban could impact creators relying on TikTok for income through brand deals and e-commerce.
  • Instagram and YouTube may benefit from a ban as creators shift their efforts.

TikTok creators and their teams are starting to take the threat of a ban in the US more seriously β€” and some wish they had begun preparing earlier.

TikTok could be yanked from US app stores as early as January 19 unless its Chinese owner, ByteDance, divests. TikTok is challenging the law in court but was just handed another legal defeat this month.

While a ban might annoy many of TikTok's 170 million US users, it would be far more impactful for those creators who use it to make money through brand deals, its Creator Rewards Program, or other methods.

"Looking back, I wish I had encouraged my talent to focus on YouTube Shorts about a year ago β€” but no time like the present," said Estella Struck, founder of Viviene New York, referring to YouTube's short-form video product. Viviene New York is a marketing agency that works with brands and several TikTok-native creators.

"We're already preparing to diversify by focusing heavily on Instagram, YouTube, and even LinkedIn for short-form video content," Struck added.

Other creator-economy insiders expressed similar sentiments to BI about diversification. They generally felt that they could continue to build up audiences on other platforms or income through other gigs.

"The creator economy would take a blow, but it wouldn't be fatal," said Jasmine Enberg, VP and principal analyst at EMARKETER. "While over half of US companies use TikTok to work with creators and influencers, TikTok accounts for 17.2% of total spending."

Some parts of the creator economy could be hit harder than others, however.

Barbara Jones, CEO of Outshine Talent, said a ban "would be crushing for the e-commerce side," like those creators and brands earning money through TikTok Shop.

"Live e-commerce is really just getting started in the US, and TikTok Shop is leading the way," Jones said. "So, I think that side would be devastated. I think for content creators that make short-form content, they will be less affected."

Sam Saideman
Sam Saideman, CEO of talent firm Innovo.

Sam Saideman

'We are acting as if it may actually be gone in January'

Jones said she's gotten "a lot of calls of concerns and worry" about a potential TikTok ban.

Many creators and managers are putting together post-TikTok plans, even if they think there's a chance it could stick around.

"We are acting as if it may actually be gone in January despite, in my opinion, not thinking it will actually be gone," Sam Saideman, CEO of talent firm Innovo, told BI. "Best case, it doesn't go away."

Some ways of preparing are easier than others, Saideman said.

"Low-hanging fruit is to migrate fans to other social platforms," Saideman said. "Harder sells are to migrate those audiences to a place that is not reliant on algorithms such as SMS lists, email lists, or exclusive membership groups."

TikToker Joseph Arujo, who has over 830,000 followers, said he believes that even if TikTok is banned, it'll be short-lived, and ByteDance would be forced to sell.

"I think it's scary now that there is this deadline," Arujo said. "But I'm weighing out my options and going to other platforms."

Arujo isn't the only creator thinking about making changes. Justine, a content creator who has almost 260,000 followers on TikTok, said she isn't too worried about the potential ban but is thinking about "shifting a lot of focus" to Instagram and YouTube.

"I think regardless of what job you have, what role you have, having more streams of income, especially in this economy, is almost essential," said Justine, who asked her last name not be used for privacy reasons.

Creator Lauren Schiller, cofounder of the clothing company OGBFF, said that in the short term, she would post to Instagram reels, and then look to make longer-format videos for YouTube and post on her brand's blog.

A TikTok ban wouldn't impact all creators equally, Enberg said.

"A ban would be detrimental to up-and-coming creators and small businesses that rely solely or primarily on the app," Enberg said. "Big brands and established creators would also be disrupted, but can better withstand the upheaval as they're more likely to have diversified their channels and have large, engaged audiences on other platforms."

Megan, who asked her last name not be used for privacy reasons, is a stay-at-home mom who uses TikTok Shop as a side hustle to earn extra income through affiliate commissions.

"It's good to save, to take the trips, to buy Christmas gifts, to live a little more not so paycheck to paycheck," she said, adding that she earned nearly $8,000 in TikTok commissions one month.

She said she planned to allocate time to her other side hustles to make money if TikTok is banned.

OGBFF
Lauren Schiller (L) and Angela Ruis (R) run a "Y2K"-inspired clothing company that has grown an audience thanks to TikTok.

Courtesy OGBFF/@chloegolan

The platforms creators and brands are turning to

"If there's a shift, I believe Instagram will likely take center stage, especially with its direct product-linking capabilities," Struck said.

Enberg said she thought Instagram and YouTube would be the biggest beneficiaries as they both have short-form video products that are natural fits for TikTokers.

"But even if a platform can replicate the technology, they can't force a change in culture," she said. "The type of viral, FOMO and trend-driven behavior doesn't exist on reels, even as the platform has tweaked its algorithm to better serve relevant content, including from smaller creators, to users."

Nya-Gabriella Parchment, cohead of brand partnerships at influencer firm Digital Brand Architects, said a lot of brands are betting on Instagram reels.

"It's easier to convert on Instagram, with ways to link out, so usually brands still use Instagram as their bedrock," Parchment said.

Parchment said creators are also interested in Snapchat again.

Arujo is one of them.

"Ever since the first threat of a TikTok ban, I decided I'm not going to rely on just this," Arujo said.

"Snapchat has been my No. 1," he said.

EMARKETER is owned by Business Insider's partner company Axel Springer.

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