Finding work as a young person? In this economy?

Overview

This episode explores the challenges young people face in the current job market, with unemployment rates for those aged 20-24 significantly higher than the national average. It also delves into China's growing trade surplus despite U.S. tariffs, the implications of Venezuelan crude oil on Canadian energy exports, the rise of surveillance pricing in consumer markets, and the economic ripple effects of inflation expectations.

Notable Quotes

- It feels like a cycle to me where I feel depressed because I don’t have a job. And then I go and apply to some things and then not hear back. – Bella, on the emotional toll of job hunting as a recent graduate.

- China is no longer the cheapest for labor. China is the place for advanced manufacturing. – Garnet Wagner, on China's shift to high-tech production dominance.

- Turns out companies know a lot about us, but we don’t know so much about them or how they decide what we pay. – Kristen Schwab, on the opacity of surveillance pricing practices.

📈 China's Trade Surplus and Global Implications

- China's trade surplus reached $1.2 trillion in 2025, a 20% increase year-over-year, despite U.S. tariffs.

- Jennifer Lee of Bank of Montreal highlighted China's dominance in producing consumer goods and rare earth minerals, setting global cost benchmarks.

- Tariffs have led to higher prices for U.S. consumers and hurt domestic manufacturing and agriculture, with farmers losing key markets like soybeans to Brazil.

- China is excelling in clean energy technologies and advanced manufacturing, including robotics, shifting away from low-cost labor competition.

🛒 Surveillance Pricing and Consumer Behavior

- Companies increasingly use consumer data to set personalized prices, a practice known as surveillance pricing.

- Experiments revealed price discrepancies for identical products based on user profiles, as seen with Uber fares and Walmart pricing.

- Retailers often use data for surveillance discounting, offering targeted coupons or discounts to incentivize purchases.

- Experts suggest using incognito browsing or disabling Wi-Fi to avoid price discrimination, though this is impractical for everyday shopping.

🛢️ Venezuelan Crude and Canadian Oil Exports

- Venezuela's potential ramp-up in oil production could displace Canadian heavy crude in U.S. Gulf Coast refineries, which are optimized for similar oil types.

- Analysts suggest Canada should diversify its markets, with China emerging as a key buyer for Canadian crude.

- Expanding pipeline capacity to the Canadian west coast is seen as critical for accessing Asian markets.

👩‍💼 Gen Z and the Tough Job Market

- The unemployment rate for 20-24-year-olds is 8.2%, much higher than the 3.7% for prime working-age adults.

- Young job seekers face challenges from a cooling job market, with employers hesitant to hire and entry-level positions potentially impacted by AI.

- Economists warn of long-term career and financial consequences for young workers unable to secure stable jobs early in their careers.

- Stories from recent graduates highlight the emotional toll of job searching, with many pivoting to unrelated fields or gig work to make ends meet.

📊 Inflation Expectations and Economic Behavior

- Inflation expectations influence consumer and worker behavior, potentially creating a self-fulfilling cycle of rising prices and wages.

- Surveys show long-term inflation expectations are moderate at 3.4%, but concerns about Federal Reserve actions and political interference could destabilize markets.

- Rising bond yields, driven by inflation fears, could increase borrowing costs for consumers, affecting credit cards, car loans, and mortgages.