{"id":66,"date":"2025-05-07T11:56:52","date_gmt":"2025-05-07T15:56:52","guid":{"rendered":"https:\/\/people.bsu.edu\/econbriefs\/?p=66"},"modified":"2025-05-22T07:58:10","modified_gmt":"2025-05-22T11:58:10","slug":"hoarding-talent-and-pokemon-hiring-by-dr-cecil-bohanon-and-dr-john-horowitz","status":"publish","type":"post","link":"https:\/\/people.bsu.edu\/econbriefs\/2025\/05\/07\/hoarding-talent-and-pokemon-hiring-by-dr-cecil-bohanon-and-dr-john-horowitz\/","title":{"rendered":"Hoarding Talent and Pok\u00e9mon Hiring \u2013 by Dr. Cecil Bohanon and Dr. John Horowitz"},"content":{"rendered":"<p><em>Originally written on 4\/11\/2023<\/em><\/p>\n<p><a href=\"https:\/\/www.bls.gov\/news.release\/pdf\/empsit.pdf\"><span data-contrast=\"none\">Last week\u2019s employment report indicated total U.S. nonfarm payroll rose by 236,000 in March, while the unemployment rate declined to 3.5%. Job growth slowed compared to the average monthly gains of 334,000 over the prior six months<\/span><\/a><span data-contrast=\"auto\">. <\/span><a href=\"https:\/\/fred.stlouisfed.org\/series\/PAYEMS\"><span data-contrast=\"none\">The economy has added jobs for 26 consecutive months.<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">However, the situation is different in the so-called \u201ctech\u201d sector. <\/span><a href=\"https:\/\/layoffs.fyi\/\"><span data-contrast=\"none\">In the last six months, Amazon laid-off 27 thousand workers, and Meta (formerly known as Facebook) has let 20 thousand workers go. It is estimated that 169 thousand workers have lost jobs in technology companies since the first of the year.<\/span><\/a><span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Of course, an economy can do well overall while certain sectors lag. However, anecdotal evidence suggests that the recent layoffs at tech behemoths are a by-product of a previous over-hiring spree. The big tech firms hired workers they did not need and could not use.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">One employee at Meta indicated she spent her <\/span><a href=\"https:\/\/www.wsj.com\/articles\/these-tech-workers-say-they-were-hired-to-do-nothing-762ff158?mod=hp_lead_pos5\"><span data-contrast=\"none\">\u201ctime in meetings that didn\u2019t accomplish anything\u201d<\/span><\/a><span data-contrast=\"auto\"> while still collecting a six-figure salary. A veteran tech worker reported co-<\/span><a href=\"https:\/\/www.wsj.com\/articles\/these-tech-workers-say-they-were-hired-to-do-nothing-762ff158?mod=hp_lead_pos5\"><span data-contrast=\"none\">workers \u201cdid on-site yoga and took long lunches.\u201d\u00a0<\/span><\/a><span data-contrast=\"auto\"> One tech observer reports, <\/span><a href=\"https:\/\/www.wsj.com\/articles\/these-tech-workers-say-they-were-hired-to-do-nothing-762ff158?mod=hp_lead_pos5\"><span data-contrast=\"none\">\u201ctech executives who have done layoffs have been startled to realize the cuts didn\u2019t have a big effect on productivity.<\/span><\/a><span data-contrast=\"auto\">\u201d<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559731&quot;:720,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Why would a profit-maximizing company hire high-paid workers and then assign them to do nothing? The big tech companies thought they would need those workers soon. They had experienced being short-staffed in the past, and it seemed prudent to have an excess inventory of qualified staff for an expected expansion that never happened. One recently laid-off worker opined: \u201c<\/span><a href=\"https:\/\/www.wsj.com\/articles\/these-tech-workers-say-they-were-hired-to-do-nothing-762ff158?mod=hp_lead_pos5\"><span data-contrast=\"none\">They were just kind of, like, hoarding us like Pok\u00e9mon cards.\u201d<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Others surmise a more nefarious motive. Hire to keep the best and the brightest from other firms or from starting their own firms, <\/span><a href=\"https:\/\/www.wsj.com\/articles\/is-big-techs-r-d-spending-actually-hurting-innovation-in-the-u-s-acfa004e?mod=wsjhp_columnists_pos1\"><span data-contrast=\"none\">neutralizing potentially disruptive competitors.<\/span><\/a><span data-contrast=\"auto\"> Suppressing competition reminds us of the urban legend about big oil companies buying the rights to a carburetor that would give everyone 60 miles per gallon and then keeping it off the market. However, a study by economists at the University of Chicago\u2019s Friedman-Becker Institute, hardly a bastion of anti-market conspiracy theorists, shows that when inventors move from small to larger firms, <\/span><a href=\"https:\/\/bfi.uchicago.edu\/working-paper\/2023-32\/\"><span data-contrast=\"none\">\u201ctheir earnings increases by 12.6 percent, and their innovative output declines by 6 to 11 percent.\u201d<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">So maybe the layoff at the tech behemoths will yield a social dividend by directing highly skilled workers to do something more valuable than practicing yoga all day.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Originally written on 4\/11\/2023 Last week\u2019s employment report indicated total U.S. nonfarm payroll rose by 236,000 in March, while the unemployment rate declined to 3.5%. Job growth slowed compared to the average monthly gains of 334,000 over the prior six months. The economy has added jobs for 26 consecutive months.\u00a0 However, the situation is different [&hellip;]<\/p>\n","protected":false},"author":112,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[488],"tags":[483,704,703,701,303,702,147,349,697,705,694,601,699,696,695,700,448,6,698],"class_list":["post-66","post","type-post","status-publish","format-standard","hentry","category-business","tag-amazon","tag-anti-market","tag-big-oil","tag-company","tag-competition","tag-competitor","tag-economics","tag-economy","tag-facebook","tag-highly-skilled-worker","tag-job-growth","tag-jobs","tag-layoffs","tag-meta","tag-tech","tag-tech-executives","tag-technology","tag-unemployment","tag-workers"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Hoarding Talent and Pok\u00e9mon Hiring \u2013 by Dr. Cecil Bohanon and Dr. John Horowitz - Econ Briefs<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/people.bsu.edu\/econbriefs\/2025\/05\/07\/hoarding-talent-and-pokemon-hiring-by-dr-cecil-bohanon-and-dr-john-horowitz\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hoarding Talent and Pok\u00e9mon Hiring \u2013 by Dr. Cecil Bohanon and Dr. John Horowitz - Econ Briefs\" \/>\n<meta property=\"og:description\" content=\"Originally written on 4\/11\/2023 Last week\u2019s employment report indicated total U.S. nonfarm payroll rose by 236,000 in March, while the unemployment rate declined to 3.5%. 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