🎓 College-hiring conundrum

Bachelor’s in physics… workin’ in software sales. As the market for entry-level jobs grows more cutthroat, 40% of 2023 college grads are applying to industries or roles they hadn’t considered before. The unemployment rate for grads aged 20 to 24 has doubled since 2021, hitting 4.6% in February. It’s a reversal from 2018, when grads were more likely to get hired than seasoned workers. This semester, we’ve got a college-hiring conundrum:

• While unemployment is historically low, and there are more job openings than available workers, a lot of employers are pulling back on early offers to college seniors.

Sending LinkedIn requests since 2020… The entry-level talent pool has filled up after lots of recent grads were laid off or took time off during the pandemic (think: #vanlife adventure). This year, employers plan to hire 14% more grads than last year, one survey suggested. But snagging top roles is becoming more competitive, and employers are engaging in fewer bidding wars for younger talent. Now grads are casting wider nets and working overtime to polish their applications. Meanwhile, popular employers are curbing entry-level hiring as mass layoffs roll on.

• Tech check: Amazon postponed start dates for some ’23 grads for up to six months, and Meta recently began hiring freezes after sweeping layoffs.
• Sofa days: Furniture retailer Wayfair has cut 10% of its workforce and is limiting hiring for full-time roles and internships.
• Consulting crunch: Last month McKinsey said it would let go of 2K workers in one of the consulting firm’s biggest cuts ever.

Bankin' on it… JPMorgan Chase, Citi, and Wells Fargo are on deck to report Friday as the US banking system undergoes a tectonic shift. “Too big to fail” banks saw an influx of deposits after the failures of regional banks like Silvergate, SVB, and Signature Bank. Meanwhile, customers have moved $300B+ into money market funds over the past few weeks — which could cut into big banking profits. In Q4 of last year, most major banks beat expectations. For the latest quarter, analysts expect higher revenues and profits.

Waiting for a #Powse… Powell pause. On Wednesday, the US gets its inflation report card for March. Investors always have eyes on the Consumer Price Index, but this one could be extra spicy: it’s the first since the banking turmoil, and the last before the Fed’s next rate-hike decision meeting on May 2. After banking worries and underwhelming labor data, traders were betting on a 60% chance that the central bank won’t hike interest rates. Some even expect that it’ll start cutting this year. But if inflation comes in hot, such hopes could be dashed.

Pump anxiety returns… Higher gas prices aren’t in the rear view. Last week, OPEC+ (the world’s largest coalition of oil-producing countries) announced a surprise production cut. Oil prices surged on word that the cartel plans to slash output for the rest of the year. It could mean higher prices at the pump and even a broader inflationary spike, because the economy runs on oil. It’s a boon for oil titans like Exxon and Shell, which have already enjoyed years of record profits on the back of rising prices. The cuts could also boost demand for US oil.

CiaoGPT… Italy temporarily banned OpenAI's ChatGPT, saying the chatbot collected personal data and could put minors at risk. It was the first Western country to boot OpenAI's tech, but as privacy concerns mount it might not be the last. Germany's considering a block, and the UK issued a warning on AI use. Now more EU countries (like Ireland and France) are in touch with Italian regulators as they consider dropping a $22M fine on OpenAI. Italy gave the company an April deadline to prove it didn't break data rules.

• Droid: Walmart said 65% of its stores will be automation-powered by 2026 (think: robo forklifts). Companies are investing in “efficiency” while cutting back on big bets like the metaverse and expenses like… staplers.
• Exfoliate: L’Oréal is lathering up $2.5B for fancy skincare brand Aesop (picture: $50 hand soap) in its largest acquisition. As Gen Z splurges on luxury beauty, niche brands are getting scooped by mainstream powerhouses.
• WWFC: Live-entertainment stars WWE and UFC plan to merge, tag-team style, to form a $21B public company under Endeavor. The brands have shared talent and viewers for years, brother.

• Moo: Alarmed by dwindling milk drinkers, the dairy industry is making a big push to re-create the magic of “Got Milk?” mustaches for a new generation. Welcome, milk-fluencers.
• Barnacles: AI’s ability to generate content featuring iconic characters like SpongeBob is making Hollywood, courts, and the US Copyright Office scrutinize how IP laws apply to artificial intelligence.
• Busy: Meta’s layoffs gutted an already strained customer-service department, leaving creators with little help to deal with problems like imposter accounts — and creating greater instability in the creator economy.

• Monday: Earnings expected from Tilray, Price Smart, and Greenbrier
• Tuesday: Earnings expected from CarMax and Albertsons
• Wednesday: March inflation report released
• Thursday: Earnings expected from Delta, Infosys, Progressive, and Washington Federal
• Friday: Earnings expected from UnitedHealth, Citigroup, JPMorgan Chase, Wells Fargo, BlackRock, and PNC Financial

Authors of this Snacks own shares: of Amazon, Delta, Walmart, and Exxon

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