18 Mar GOLDMAN CRACKS THE WHIP ON ITS EMPLOYEES; PAYING THE PRICE FOR SHARING
Welcome to this week’s business and media intelligence update.
FIRST, THE GOOD NEWS
Good news on the jobs front. The Australian Bureau of Statistics reported on Thursday that the national unemployment rate has now fallen to four per cent – the lowest in 14 years. There is also now a record number of people in full-time jobs.
And the big job winners, it seems, are women (for a change).
Female unemployment fell to a 50-year low of 3.8 per cent, with women taking up two-thirds of all new jobs.
NOW, FOR THE NOT SO GOOD NEWS
Interest rates are on the way up.
After three years of record low interest rates, the world’s most powerful central bank has finally taken the jump to lift rates.
Also on Thursday, the US Federal Reserve lifted its benchmark rate by 0.25 percentage points with a strong prospect of a further six increases this year.
Chairman Jerome Powell said the lift in the rate from zero is an attempt to curb the highest inflation experienced in the US in 40 years, with the war in Ukraine threatening to raise inflation further.
The hike in rates is likely to cause a domino effect throughout the developed world, including Australia, according to monetary experts. So, stand by to fork more for your loan.
GOLDMAN CRACKS THE WHIP ON ITS EMPLOYEES
Wall Street titan Goldman Sachs drew a line in the sand this week, re-opening its US headquarters and demanding that staff return to the office five days a week.
The problem: Only 50 percent of its 10,000 New York-based staff showed up.
Goldman’s policy is controversial, setting the company apart from its competitors.
But Goldman CEO David Solomon has made it abundantly clear that he does not believe in remote work, arguing that the “ecosystem” of the firm – it’s hard-driving culture, analyst apprenticeship, and powerful alumni network – simply cannot be replicated in a virtual or hybrid working environment.
PAYING THE PRICE FOR SHARING
In another sign it’s time to peel off the couch and head back to the office, Netflix is cracking down on customers who share their accounts with friends and family members outside their home.
The streaming giant this week said it will start charging some customers more to share their accounts with people they don’t live with.
Netflix argues that unauthorised password sharing has impacted its ability to invest in new TV shows and films. So, over the next few weeks, it will start testing new features in Costa Rica, Chile and Peru that will allow subscribers with premium and standard plans to add up to two people they don’t live with.
The key takeaway? Sharing is not Netflix caring…
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