Gregory Iacurci’s Post

Here's some comfort for workers who fear they may be called back to the office five days a week: "Remote work is not going away,” according to Nick Bloom, an economics professor at Stanford University. More than four years on from the start of the Covid-19 pandemic, levels of remote work have flatlined well above what they were in 2019. Why? Hybrid work is extremely profitable for companies, said Bloom, who has studied work-from-home arrangements for over a decade. Workers value the ability to work from home (they value it about the same as an 8% raise) and quit their jobs less often as a result. For employers, that translates to lower hiring, recruiting and training costs. Of course, some companies have forced workers back to the office full-time. But that's unlikely for most others at this point, according to labor economists. One recent University of Pittsburgh study even found that large U.S. companies imposing return-to-office mandates did so in order to “scapegoat” remote work for poor company performance — not due to a conviction about the firm's values. https://lnkd.in/enyW5mrG

There's a huge demographic shift taking place in the U.S. On average, about 10,000 Americans are turning 65 every day, and the number of older adults will more than double over the next several decades, AARP estimates. Along with longer lifespans, these dynamics have important implications for households (and the nation at large). Yet, there are some common blind spots when people plan for old age. What are they? And what might the future of aging look like? Dr. Joe Coughlin, director of the MIT AgeLab, will help CNBC break it all down this morning on "This week, your wallet." Tune in here at 11 am E.T. or check out a recording after the show: https://lnkd.in/eADDiMWZ

I traveled to Argentina for two weeks in February and was fascinated by its system of multiple currency exchange rates: an 'official' rate and an 'unofficial' one set by the black market. The latter pays US tourists twice as well — and, curiously, can be accessed legally by wiring oneself cash via Western Union. I investigated why this system exists (in short: hyperinflation) and wrote about my experience for CNBC. https://lnkd.in/gqVaBfgM

Inflation cooled again in December. In fact, average prices FELL overall during the month, largely due to reprieve at the gas pump, according to the consumer price index report issued Thursday. Overall, this amounts to good news for consumers. Some economists expect inflation to be close-ish to "normal" levels a year from now. Among the items that saw the highest inflation in 2022: school lunches, eggs, margarine and fuel oil. Some of this is due to random factors beyond the broader inflationary trend. For example, the U.S. had its deadliest bird-flu outbreak in history last year, resulting in a dramatic increase in egg prices. Housing remains stubborn, though. Rent and other shelter costs jumped in December, according to CPI, a disconcerting trend because housing is the largest expense for the average person. However, we're likely at the peak and the trend should reverse in coming months, economists said. https://lnkd.in/gAeqM7x9

Inflation was cooler than expected in November, a sign of relief on the horizon for consumers who've seen prices for goods and services rising at their fastest pace in decades. The consumer price index, a key inflation barometer, was up 7.1% relative to November 2021, the smallest increase in the past year. It's also down from the peak around 9% in June, the highest since the early 1980s. The moderation in November was broad-based, an encouraging sign, economists said. Inflation isn't a U.S. phenomenon. It's been playing out overseas, too. There are many tentacles that have fed into the trend since early 2021: snarled supply chains; ample household cash (pent-up demand from staying home amid Covid-19 and federal pandemic funds); a historic demand for labor among employers (leading to fast-rising wages); and Russia's invasion of Ukraine (which caused a price spike for commodities like oil and food). There have also been some unrelated one-off events: Among the worst-ever outbreaks of bird flu in the U.S. has caused egg prices to surge, for example. https://lnkd.in/eFNt4qJf

The price for butter and margarine is up 32% in the past year, the biggest jump relative to all other grocery categories. Why is that? Food inflation overall is near its highest in decades. Some of the same contributing trends apply here: Higher costs for labor and energy (and hence production and distribution), for example. But that's just part of the explanation. Global trade for vegetable oils like sunflower, palm, canola and soybean oils — the primary ingredient in margarine — has been impacted by war and weather. Milk production has fallen among major supplying nations, and the U.S. has shipped more overseas to fill demand, helping fuel higher butter costs. https://lnkd.in/eHZwRypk

Inflation measures how quickly prices are rising for a range of consumer goods and services. The Consumer Price Index, a key inflation barometer, jumped by 8.2% in September relative to a year earlier, more than economists expected though a slight decline from August. Food, housing and energy have been among the major contributors in the past year, though American consumers have seen their expenses rising quickly in many categories across the U.S. economy. It's important to note that inflation isn't just an American phenomenon. Global inflation is forecast to rise to 8.8% in 2022 from 4.7% in 2021, according to the International Monetary Fund. While historically high inflation is likely to linger for some time in the U.S., there are signs that it could moderate into next year, especially as the Federal Reserve is likely to continue raising borrowing costs to cool the economy. https://lnkd.in/eYf7ZfXu

Employers are offering signing bonuses at a rate about triple what it was pre-pandemic. They're offering the financial sweeteners as a recruiting tactic in the hot job market. In some fields, like nursing, almost 1 in 5 job ads offer a signing bonus. Here are some strategies workers can consider to negotiate these perks. https://lnkd.in/e9MykeTD