A working paper from researchers at the Federal Reserve found that a surge in retirees accounted for almost all of the decline in the labor-force participation rate up to October. The labor-force participation rate among people in their prime employment years, 25 to 54, is incredibly close to its pre-pandemic level, while the rate for those 55 and older is still down significantly. And researchers have determined the core source of this labor shortage: a wave of retirements in the generation complaining that young people lack a work ethic. The labor-force participation rate - the percentage of adults in the US who are either employed or actively seeking work - remains well below pre-pandemic levels. Three years on, even after the programs that shouldered the blame for there being "no workers available" faded away, the labor shortage remains. The shortage of labor pushed up wages for people able to keep a job and led the more obnoxious bosses and friends of your parents' to complain that "no one wants to work anymore." Many economic conservatives also blamed generous pandemic welfare measures like stimulus checks and enhanced unemployment insurance, which they claimed discouraged work. At the start of the COVID-19 emergency, there were too many potential causes of this labor shortage: loss of childcare, fear of illness, and surprisingly strong consumer demand that scrambled staffing needs. Forget quiet quitting - let's talk about loud retirementĪmong the more intensely discussed economic disruptions of the pandemic has been the widespread lack of workers. While inflation may be cooling a bit, future prosperity for millennials, Gen Zers, and beyond depends on reversing this economywide bottleneck created by boomers. LinkedIn shares have lost nearly a quarter of their value in the last three months.The boomers' economy is brittle, stingy, and built on undersupply. “Given those macro concerns and LinkedIn’s recent execution issues, we expect investors will demand financial outperformance before there is meaningful recovery in LNKD’s multiple,” Goldman Sachs analysts wrote in a client note. LinkedIn has been spending heavily on expansion by buying companies, hiring sales personnel and growing outside the United States, but is now facing pressure in Europe, the Middle East, Africa and Asia-Pacific due to macro-economic issues. Facebook, Alphabet and Inc are better picks for investors than LinkedIn, Evercore analysts wrote. LinkedIn should be trading at $71.79, a 35% discount to the stock’s Friday’s low of $75.54, according to StarMine’s Intrinsic Valuation model, which takes analysts’ five-year estimates and models the growth trajectory over a longer period. “We were wrong,” they said in a client note.Īs of Thursday, LinkedIn shares were trading at 50 times forward 12-month earnings versus Twitter’s 29.5 times, Facebook’s 33.8 and Alphabet’s 20.9, making it one of the most expensive stocks in the tech sector.Įven after the selloff, LinkedIn’s shares may still be overvalued, according to Thomson Reuters StarMine data. RBC analysts said they had thought LinkedIn was on the cusp of “fundamentally positive” change. Underscoring the slowdown in growth, LinkedIn said online ad revenue growth slowed to 20% in the fourth quarter from 56% a year earlier. “This would imply that LinkedIn will grow around 15% in 2017 and 10% in 2018,” the Mizuho analysts said. LinkedIn forecast full-year revenue of $3.60-$3.65bn, missing the average analyst estimate of $3.91bn, according to Thomson Reuters I/B/E/S. At least 22 brokerages cut their price targets on the stock, with RBC slashing its target by almost half to $156. Raymond James, Cowen and Co, BMO Capital Markets, JP Morgan Securities, RBC Capital Markets and Suntrust Robinson also downgraded the stock. Mizuho downgraded the stock to “neutral” and slashed its target price to $150 from $258. “With a lower growth profile, we believe that LinkedIn should not enjoy the premium multiple it has grown accustomed to,” Mizuho Securities USA Inc analysts wrote in a note.
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