Watch That Wake
Our take on the Labor Report controversy.
Coming to you from 30,000 feet via Delta Airlines. It was an unexpected weekend in NYC thanks to canceled flights. There are worse places to be stranded, and honestly, a few days in Manhattan always energizes us professionally and creatively.
It’s been an eventful weekend in the working world.
The latest labor report indicates that job growth is slowing and unemployment is creeping up. The President says the numbers are wrong. It appears there have been concerns about shaky data, with analysts already raising issues before the latest figures were released (see below). Basically, the government cuts have left fewer people making sure the data is accurate.
Regardless of the actual numbers, we believe that directionally the report is correct. The trend feels real. We see that organizations are either reaping massive AI-driven efficiencies or they’re betting they will soon. Just look at the headlines below. Leaders are bragging about cutting jobs as if it’s a badge of honor. Consulting firms are suddenly wondering if AI is about to wipe them out. Analysts are starting to point out how expensive and risky this AI build-out is becoming.
When ChatGPT hit in Fall 2023, people predicted it would hammer the job market. But it just kept chugging along.
I used to work for Charlie Loudermilk, one of the great entrepreneurs of his time. He loved stories and analogies. He’d say that business is like a speedboat at full throttle. You’re going so fast, it feels like you’re gliding across that glassy water. But the second you let off the gas, the giant wake you’ve been creating comes roaring back and slams over you. So, of course, the point of the story is “never let off that throttle.”
Here’s the problem. At some point, you have to get more gas in that speedboat.
That’s where we are now. AI has turbocharged the speedboat, but no one’s knows where that tank of gas is coming from. Companies are focused on automating and squeezing more out of less. But if leaders aren’t clear on what’s next, how they’re engaging (refueling!) their teams, their strategies, and their cultures, they’re going to get overtaken by that monster wake. It’s a big one.
US labor market cracks widen as job growth hits stall speed
US economic data quality a worry, authorities not acting urgently enough, experts say- Reuters poll
It appears there were concerns before the latest figures emerged.
CEOs Are Shrinking Their Workforces—and They Couldn’t Be Prouder
“Bosses aren’t just unapologetic about staff cuts. Many are touting shrinking head counts as accomplishments in the AI era.”
AI Is Coming for the Consultants. Inside McKinsey, ‘This Is Existential.’
“If AI can analyze information, crunch data and deliver a slick PowerPoint deck within seconds, how does the biggest name in consulting stay relevant?”
The AI Boom’s Hidden Risk to the Economy
“The build-out of artificial-intelligence infrastructure is costing a fortune, straining companies and capital markets”
Thinking Is Becoming a Luxury Good
Literacy is declining due to phone addiction.
Did We Kill Surprise and Delight?
How Long Gone's Chris Black and Jason Stewart: ‘Taste takes years to define’
Culture Edit Podcast:
Ep. 101 – Dylan Johnson, Professional Cyclist
In this week’s episode, we chat with professional cyclist, coach, YouTuber, podcaster, and entrepreneur, Dylan Johnson. We talk about living in Brevard, NC, training in the mountains, group rides, what it means to be a professional cyclist, how he got his start on YouTube, parasocial phenomenon, his big comeback after getting hit by a car and the business of being Dylan Johnson. Get to know the person behind the marketing and content machine; you don’t want to miss this episode.