Labor market anxieties grow

Overview

This episode delves into the growing anxieties surrounding the labor market, exploring why job security concerns are rising despite relatively low unemployment rates. It also examines the unexpected effects of tariffs on consumer prices, innovations in AI chip cooling technology, and the evolving car market. Additionally, the episode highlights a community's resilience in rebuilding after a devastating fire.

Notable Quotes

- When you lose everything and you have nothing left, you either get busy living or get busy dying. – Chalene Hearing, on rebuilding her martial arts studio after a fire.

- The actual tariff rates US importers are paying are about half of the statutory rate. – Gita Gopinath, on why tariffs haven't caused expected price spikes.

- AI data centers are basically cooling supercomputers with hot water — it's so incredibly efficient. – Jensen Huang, Nvidia CEO, on the company's new chip technology.

🧑‍💼 Labor Market Anxieties

- Mitchell Hartman reports on a low fire, low hire labor market, where job openings and layoffs are both declining.

- Workers are increasingly worried about job security, with Joanne Hsu noting a significant rise in unemployment fears, especially among white-collar and tech workers.

- Black workers face disproportionate challenges, with unemployment rising to 8.3% in November, compared to 7.5% in September.

- Corey Staley describes the market as frozen, with limited opportunities for career advancement or wage growth.

📈 Tariffs and Consumer Prices

- Despite tariffs being at a 100-year high, their impact on consumer prices has been muted. Gita Gopinath explains this is due to exemptions, shipping lags, and trade agreements like the USMCA.

- The average tariff rate paid by importers is 14%, significantly lower than the statutory 27%.

- Gopinath predicts another round of price increases in 2026 but emphasizes that the effects will likely stabilize thereafter.

💻 AI Chip Innovations

- Nvidia's new AI chips, announced by CEO Jensen Huang, require less cooling, eliminating the need for water chillers in data centers.

- This innovation could reduce energy consumption and carbon emissions, as noted by Xiaolei Ren from UC Riverside.

- The announcement caused HVAC company stocks to drop, signaling a shift in data center infrastructure needs.

🚗 Car Market Trends

- Car sales rose 2% in 2025, driven by pre-tariff buying sprees and a rush to purchase EVs before tax credits expired.

- The average cost of a new car hit $50,000, up from $40,000 in 2020, making them increasingly unaffordable for lower-income households.

- Interest rates on car loans may drop in 2026, but tariffs could still push prices higher, according to Stephanie Brinley.

🔥 Rebuilding After the Eaton Fire

- Chalene Hearing shares her journey of rebuilding her martial arts studio in Altadena after it was destroyed in the Eaton fire.

- With support from the Green Line Housing Foundation, she has raised over $100,000 to buy back the lot and plans to create a mixed-use space for businesses and residences.

- Hearing emphasizes the importance of community collaboration in revitalizing the area, stating, We all need it. We all have to survive, and we have to go for the change.