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Entry-level jobs down by a third since launch of ChatGPT

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120 points lsharkey602 | 2 comments | 30 Jun 25 11:38 UTC | HN request time: 0.484s | source
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bachmeier ◴[30 Jun 25 14:14 UTC] No.44423567[source]▶
Okay. It also coincides with the end of the post-pandemic hiring boom and the UK bank rate going from 0.1% to 5.25%. It's kind of funny that reliable data analysis has never been part of the AI hype when you consider that AI is used for data analysis.
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eru ◴[30 Jun 25 14:22 UTC] No.44423667[source]▶
> It also coincides with the end of the post-pandemic hiring boom and the UK bank rate going from 0.1% to 5.25%.

I agree that the former is a strong signal. However the latter doesn't tell you anything without further context: did interest rates go up, because the economy was strong, or did rising interest rates dampen the economy?

(It's similar to how you can't tell how hot it is in my apartment, purely from looking at my heating bills: does a low heating bill mean that it's cold in my flat, because I'm too cheap too heat? Or does a low heating bill mean it's summer and really hot anyway?)

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captainbland ◴[30 Jun 25 14:31 UTC] No.44423818[source]▶
In this case it was widely publicised that interest rates went up to try to bring inflation down (which was significantly above the 2% target).

Growth was weak to unremarkable although the hiring market was good for job seekers at the time shortly before the interest rises were introduced.

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1. Analemma_ ◴[30 Jun 25 14:35 UTC] No.44423885[source]▶
Growth in the US, and Europe to a lesser degree, was very strong in this period, so it was natural that their interest rates went up. And when interest rates go up in the UK's two primary trading partners, it doesn't really have any choice but to hike rates with them, lest people flee the pound and make inflation even worse. It was unfortunate that this had to happen in a weak growth regime, but the British economy is such a boondoggle at the moment I don't think the alternative would've been any better.
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2. eru ◴[30 Jun 25 14:55 UTC] No.44424122[source]▶
Alas, it would be better if the Bank of England had a nominal GDP level target, and then they could let inflation, exchange rate and interest rates be what they may in order to reach the nominal spending target.