What's next for the job market in 2026

Overview

This episode explores key economic trends and challenges as 2025 concludes, including the state of the job market, housing affordability in Los Angeles, the evolving influencer economy, the growth of solar energy, and the rising popularity of tribute bands.

Notable Quotes

- Influencers have to be both the perfect salesperson and your best friend. - Mia Sato, on the delicate balance influencers maintain to build trust and sell products.

- The only source of new power that can grow very quickly and scale up is solar. - Daniel Cohan, on the rapid expansion of solar energy amidst other energy challenges.

- It's just like the real thing, but less expensive. - Michael Twombly, on the appeal of tribute bands in a tightening live entertainment market.

📉 The Job Market in Transition

- Initial unemployment claims fell to under 200,000, the second-lowest in two years, but experts caution this may be a seasonal anomaly.

- Andrew Stettner from the Century Foundation notes a 5% rise in unemployment claims over 2025, signaling a low-fire, low-hire environment.

- Workers are staying in current roles due to limited pay increases, unlike previous years when job-switching led to significant raises.

- Employers are increasing hours for existing staff, which could indicate potential hiring in 2026. However, federal spending cuts and concentrated economic growth in sectors like AI may hinder broad-based job recovery.

🏠 Housing Affordability and Rent Control in Los Angeles

- LA tightened rent control laws, capping increases at 4%, covering nearly 70% of tenants.

- Many renters, especially low-income immigrants, are on the brink of homelessness, with some spending 90% of their income on rent.

- Landlords argue that stricter rent controls discourage new housing development, exacerbating the housing shortage.

- Experts like David Garcia emphasize the need for a dual approach: building more housing and regulating rents effectively.

🛍️ The Influencer Economy and Shopaganda

- Influencers are reshaping consumer habits by blending relatability with polished marketing, creating a sense of trust to drive purchases.

- The de-influencing trend critiques overconsumption but often redirects viewers to alternative products, perpetuating spending.

- Mia Sato highlights how social media's frictionless shopping experience has increased compulsive buying, a phenomenon ripe for further research.

☀️ Solar Energy's Rapid Growth

- Solar accounted for 58% of new energy generation in 2025, driven by expiring tax credits and rising energy demand from data centers and EVs.

- Solar is the fastest-growing energy source due to its scalability and declining costs, especially when paired with battery storage.

- Federal permitting delays and reduced tax credit timelines pose challenges, but experts like Daniel Cohan see solar as the most viable near-term energy solution.

🎸 Tribute Bands and the Economics of Nostalgia

- Tribute bands are thriving as consumers seek affordable live entertainment amidst rising concert ticket prices.

- Bands like Mojo Risin’ (a Doors tribute) offer fans a nostalgic experience at a fraction of the cost of seeing original acts.

- Tribute acts are increasingly diverse, with demand shifting toward contemporary artists like Taylor Swift and Rihanna.

- Michael Twombly, a booking agent, notes that tribute bands are a low-risk option for venues and promoters, especially in a cooling live entertainment market.