TLDR;
This episode of Talking Business explores the evolving job market for university graduates, influenced by factors like AI and shifting employer demands. It features insights from LinkedIn data, highlighting a slowdown in entry-level hiring and a rise in entrepreneurship. The episode includes interviews with Oliver Dalabani, a recent graduate who launched his own skincare business after struggling to find a job, and Simon Squib, a serial entrepreneur, who advocates for creating one's own opportunities. They discuss the risks and rewards of entrepreneurship versus traditional employment, the importance of financial literacy, and the evolving value of a college degree.
- The job market for graduates is changing, with slower hiring rates and the impact of AI.
- Entrepreneurship is on the rise, offering an alternative to traditional employment.
- Financial literacy and a willingness to take risks are crucial for starting a business.
- The value of a college degree is being questioned, with more emphasis on skills and experience.
Introduction: The Changing Jobs Market [0:04]
The introduction sets the stage by highlighting the significant changes in the job market that recent university graduates are facing. The launch of Chat GPT and predictions of AI replacing millions of jobs have created uncertainty. Goldman Sachs' research indicates that young tech workers are particularly vulnerable to displacement by machines. LinkedIn data supports this, showing a slowdown of over 20% in hiring rates for entry-level positions in both the US and the UK. These shifts are driven by factors such as trade policy, interest rates, and the increasing role of AI in the workforce.
The Decline of Degree Requirements [1:24]
The discussion moves to the decreasing importance of a college degree in certain job sectors. Data from Indeed shows that a majority of new roles no longer require formal education qualifications, with a 3% drop in jobs specifying a degree. While a college education still offers long-term earning potential, there's growing demand for skilled trades like electricians, welders, and plumbers, which don't necessarily require a degree. LinkedIn advises graduates to be flexible in acquiring skills and experiences, noting a significant increase in people starting their own businesses, with a 60% rise in the last year and a three-fold increase in the last five years.
Oliver Dalabani's Experience [3:18]
Oliver Dalabani, a 22-year-old graduate, shares his challenging experience of applying for over 200 jobs since graduating. Facing constant rejection, he teamed up with a friend to launch a natural skincare brand called Ancient Standard. Oliver explains that their brand focuses on using natural ingredients and traditional skincare methods. He emphasises the importance of taking small, manageable steps when starting a business, focusing on what can be achieved each day to avoid feeling overwhelmed.
Simon Squib's Perspective on Entrepreneurship [4:36]
Simon Squib, a serial entrepreneur, advises young people to create their own jobs rather than waiting for employment. He argues that universities' promise of guaranteed employment is no longer valid, especially with the rise of AI. Simon believes it's easier than ever to start a business and encourages aspiring entrepreneurs to focus on getting one paying customer to validate their idea. He stresses the importance of taking risks and viewing setbacks as opportunities for growth.
Risk vs. Reward: Entrepreneurship vs. Employment [7:03]
The conversation explores the concept of risk in entrepreneurship versus traditional employment. Simon argues that working for someone else is riskier in today's world due to potential layoffs and lack of equity. He believes that employees often "outsource" risk, giving control to their employers. Oliver agrees, noting that many people seek jobs to avoid risk, but acknowledges the satisfaction of taking ownership of his business's success or failure. Simon adds that having a purpose beyond making money is crucial for young entrepreneurs, who often want to solve global problems.
The Value of Education and Financial Literacy [11:23]
Oliver reflects on his college education, acknowledging the valuable relationships he formed but questioning whether the cost was justified, given the availability of information and skills training online. Simon argues that universities are selling a false promise of guaranteed employment and a unique network. He believes a network can be built through life experiences and entrepreneurship. Simon strongly asserts that money is not a prerequisite for starting a business; financial literacy is. He explains how securing a deposit from a client can cover initial costs, highlighting the importance of owning equity in one's work to build long-term success.
Advice for Job Seekers and Entrepreneurs [15:29]
Oliver advises job seekers to pursue their interests and passions, exploring them as side projects. Simon emphasises the importance of financial literacy and equity ownership for long-term success. He encourages people to understand how money works and to take control of their careers by starting their own businesses.