How the Stock Market Affects the Job Market

  • Cadre Talent is a quality over quantity boutique recruiting shop specializing in all things software engineering in LA
How the Stock Market Affects the Job Market

The recent stock market plummet has sent many people into wondering if the job market will follow suit, affecting their careers and livelihoods.

The good news is, even though the health of the stock market does have an impact on the job market, it’s often not a one-to-one correlation.

The Stock Market As an Indicator of Shareholder Confidence

The stock market reflects not only the strength of the economy at the moment but also the confidence that investors and corporations have in the future of the market.

If shareholders believe that a company is going to make more profits, then the stock price will bounce back and the organization will have more resources to expand and hire employees. If the market feels that a company’s earnings will remain stagnant or decline, then the stock price will drop and the organization will likely have to tighten its belt.

As such, how investors evaluate the economy will impact corporations’ resource allocation and hiring decisions.

Keep in mind that the stock market is a leading indicator while the job market is a lagging indicator. A single fluctuation in the stock market is unlikely to impact the job market significantly in the short run.

However, if the downward trend continues in the stock market and shareholder confidence starts to erode, the job market will likely suffer since a company’s stock value is based on investors’ projection of its future earnings.

One major reason that a bull market typically creates more jobs is the increased M&A activities. Larger companies have more cash and tend to expand more aggressively. On the other hand, M&A activities tend to slow down in a sustained bear market.

Also, VC money tends to drop off in a sustained bear market, which often results in a tight market, as well as a contraction in seed and Series A rounds. This, in turn, affects the hiring prognosis for startups while more candidates are holding onto their jobs at bigger shops. Such candidate-favored market could deter smaller companies from hiring.

How the Stock Market Affects the Job Market

How the Stock Market and Job Market Affect Each Other

Many factors, such as the global economy, political climate, and investor confidence can impact how the stock market and the job market affect each other as they’re intertwined in nuanced ways.

For example, the economy doesn’t have to decline to put CEOs under pressure. If shareholders start losing confidence for any reason and executives are forced to put a hold on spending, the job market could be affected.

Alternatively, when job seekers see signs of uncertainty in the market, they’re likely to stay at their current jobs and start banking more money instead of taking more risks or increase their spending. This will reduce their disposable income, impact the economy, reduce corporate earnings, and eventually affect the stock market.

There are other factors that will affect the confidence of the market and the outlook of investors in response to a plummet in stock prices, which can have a major impact on the job market.

For example, if investors are pessimistic about the political climate and the Fed responds by increasing the interest rates, global stock and bond market will continue to drop. Companies will be under pressure to tighten their spending by pausing their hiring or even laying off employees.

However, if the political climate instills an optimistic mood in corporate America (e.g., through deregulation and tax breaks,) stockholder confidence can stay high despite a momentary drop in stock prices. Businesses will feel empowered and continue to expand and hire more employees.

Last but not least, wild swings in stock prices could impact market confidence more significantly. As a result, the fluctuation is likely to be more destabilizing for the job market.


 

Cadre is a quality over quantity boutique recruiting shop specializing in all things software engineering, robotics, artificial intelligence, and autonomous vehicles. Cadre is building a talent network utilizing AI and Machine Learning to help solve the tech talent crisis across their portfolio of 85 startups throughout California, Seattle, and Austin.

 

Jason Stomel
Contributor
Cadre Talent, Santa Monica, CA
Jason is the founder and CEO of Cadre; a talent agency, recruiting software incubator and Angel Investor. He has been recruiting in LA for 12 years across a portfolio of startups ranging from Pre-Series A to publicly traded tech companies and Venture Capitalists.
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Jason Stomel
Cadre Talent, Santa Monica, CA
Jason is the founder and CEO of Cadre; a talent agency, recruiting software incubator and Angel Investor. He has been recruiting in LA for 12 years across a portfolio of startups ranging from Pre-Series A to publicly traded tech companies and Venture Capitalists.

Dave.com is Growing, Hiring 8 More Resources


Dave.com is an AI tech startup based in LA, a mobile-based app launched to save you from expensive bank overdraft fees. Dave.com predicts your future expenses and unlocks your upcoming paycheck to prevent Overdrafts. Backed by a great group of investors: Mark Cuban, SV Angel, Skip Paul, Jonathan Kraft, amongst others.

They are looking to hire 8 more talented folks in LA.  Congrats to my buddy Paras Chitrakar on the success!

Check out these awesome gigs …

Product Team

  • Associate Product Manager
    • Seeking an Associate Product Manager who is highly analytical, organized and has experience driving projects in a fast-paced environment. You’ll help us maximize our current product’s potential, and effectively coordinate between engineers, designers, analysts, and stakeholders.
    • Executing on this will require strong qualitative and quantitative research abilities, with a creative mindset and a holistic approach to product management. You’ll work iteratively to ship and test features, partnering closely with research, data, design, and engineering to help improve our members’ relationship with money.
  • Product Designer
    • Seeking a Product Designer who likes tackling ambitious and complex problems. At Dave, our design aims for simplicity above anything else. Financial products are often intimidating and overly complex. Yet, our aim is to make financial data easily understandable and approachable.
    • Your designs have to do more than look good on Dribbble. While being pixel perfect is key, your design should focus on usability and accessibility. Your design will optimize the product for increased growth, engagement, retention, revenue, etc.
  • Product Manager – Growth
    • Seeking a Product Manager who is highly analytical, organized and has experience shipping products in a fast-paced environment. You’ll help us maximize our current product’s potential, and effectively coordinate between our Head of Product and Director of Engineering.
      You will own the product development lifecycle in a cross-functional team with a prioritized roadmap, clear milestones, and short iteration cycles.

Engineering Team

  • Full Stack Software Engineer
    • Hiring a Full Stack Software Engineer with a minimum of 2 years of experience in software development, and strong CS fundamentals and problem-solving skills. You will need to have experience programming in one or more general purpose programming languages, including but not limited to Java, JavaScript, Python, C/C++ or Go.
    • You will work closely with our PM and design teams to define feature specifications and build products leveraging frameworks such as React & React Native.
  • Senior Platform Engineer
    • Hiring a talented Senior Platform Engineer to continue building the foundation that empowers the engineers to build products that help millions of people improve their relationship with money. We’re looking for passionate software engineers interested in backend infrastructure, systems, and security. If you’re excited to join a tight-knit collaborative team with a mission of helping others, we’d love to hear from you!
    • You will need to have 5+ Years of Software Engineering Experience with a focus on Platform and Backend Infrastructure, and strong CS fundamentals and problem-solving skills

General

  • Talent Acquisition Manager
    • Hiring a Talent Acquisition Manager o help shape the future team during an exciting time of growth at Dave. Reporting to the Director of People Operations, this seasoned recruiter will lead and execute hiring efforts for all levels and functions across the company, with a heavy volume in Software Engineering.
    • The ideal candidate will play a critical role in protecting and evolving Dave’s culture by finding amazing talent to bring into the organization, building the employer brand externally, and improving overall selection capabilities.
  • Associate User Acquisition Manager, Social
    • Hiring a User Acquisition Associate to grow our user base. You’ll be focused on growing and scaling Dave’s accounts by driving lower customer acquisition costs and also increasing overall spend. As a member of the Marketing team, the ideal candidate is an asset Week 1, has a passion for optimization and efficiency, and has experience running successful performance marketing campaigns at scale.
    • We’re looking for someone who is driven, analytical, strategic, obsessed with marketing spend efficiency, and will love being part of our close-knit team.
  • Customer Success Associate
    • Hiring a Customer Success Associate with prior experience in tech support, banking or insurance is a big plus. Someone with excellent grammar and communication skills. And, a good human being.

Benefits + Perks

  • Premium PPO Medical and Dental Insurance plan for you and your family
  • A brand new computer/equipment of your choosing
  • Catered lunch 2x/week
  • 1UP Wednesdays where you can teach or learn something new from a fellow Dave
  • Flexible vacation time
  • Basketball hoop
  • Open and creative office space

 

 

Founder, Editor-in-Chief
LAStartups.com, Schmoozd.com
A native Angeleno. John studied engineering at UCLA; founded Schmoozd, an offline social tech networking event in LA with 30,000 subs; ran a startup accelerator (StartEngine). Worked for several major brands like Toyota, DIRECTV, Hitachi, and Raytheon. A mentor at LMU Entrepreneur School. And advises a dozen local LA startups building amazing tech in various industries; also invested in some.
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LAStartups.com, Schmoozd.com
A native Angeleno. John studied engineering at UCLA; founded Schmoozd, an offline social tech networking event in LA with 30,000 subs; ran a startup accelerator (StartEngine). Worked for several major brands like Toyota, DIRECTV, Hitachi, and Raytheon. A mentor at LMU Entrepreneur School. And advises a dozen local LA startups building amazing tech in various industries; also invested in some.

5 Technology Trends Startup Should Follow Right Now

5 Technology Trends Startups Should Follow Right Now

Be current with today’s technology trends if you want to get ahead (or even just keep up) with your competitors. Here are the most important tech trends for 2019.

Technology trends come and go, depending on the current landscape of the business world. It’s best if you can come in on these trends to get ahead of your competitors so that you can reap the benefits. If you’re lagging behind, you better catch on quick to at least keep up.

So which tech trends are important? For 2019, these are the trends to note:

1 Using Facebook Messenger for Marketing

For years now we’ve heard how sooner or later Facebook will no longer be popular. Yet this behemoth of a website still draws in 1.3 billion users a month. That’s the kind of audience size no business can ignore, which is why it’s crucial to do your marketing on this platform.

Then there’s Messenger, which is a handy tool that can do a lot of stuff for you. It can boost brand awareness, enhance the shopping experience, and demonstrate that you actually care about customers. One great example: this can help resolve various customer complaints and questions in less a minute on average.

2 Using Social Media as a Retail Platform

A lot of companies have already started using social media for marketing by engaging with customers directly. Of course, it occurred to someone (to an increasing number of companies, in fact) that you can also use this platform to engage with customers by selling to them directly. It’s a pretty logical extension of the principle.

Right now a number of social media platforms are doing their bit by making it easier for companies to sell their wares directly. Instagram has the Stories platform, while you have the Shoppable Snap Ads on Snapchat.

3 Optimize for Voice Search

More and more people aren’t typing in the words in the Google search box. They’re now just using voice search. A lot of households now also have auto assistants like Alexa and Siri.

These people who use voice search also use a much different set of keywords. They tend to ask complete questions, so you better optimize your website to match those likely questions.

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Ready to ride, #CES2019? Just say #HeyGoogle.

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4 Assist in Paying Employees’ Student Loans

This is a rather innovative way to attract and retain top talent, especially tech talent. There are no repayment providers that enable employers to provide assistance to their employees when they’re paying off their college debts.

5 Use Square to Offer Customer Financing for Purchases

Square is great. It became popular among many small business owners when it first enabled formerly “cash only” small businesses to finally take customer credit cards so these businesses won’t miss out on making a sale.

Now, Square has come up with its Installments service. This time, Square acts as a middleman between merchants and customers, so that customers can buy items worth $250 to $10,000. It’s like Square is the credit card company, and customers pay Square back through fixed monthly installments for 3 to 12 months. The APR varies, from zero up to 24%. It’s available in 22 states, but this number should grow soon.

Also, check out these 6 Easy Steps to Optimizing Your Voice Search – And Why It’s Important

Founder, Editor-in-Chief
LAStartups.com, Schmoozd.com
A native Angeleno. John studied engineering at UCLA; founded Schmoozd, an offline social tech networking event in LA with 30,000 subs; ran a startup accelerator (StartEngine). Worked for several major brands like Toyota, DIRECTV, Hitachi, and Raytheon. A mentor at LMU Entrepreneur School. And advises a dozen local LA startups building amazing tech in various industries; also invested in some.
×
LAStartups.com, Schmoozd.com
A native Angeleno. John studied engineering at UCLA; founded Schmoozd, an offline social tech networking event in LA with 30,000 subs; ran a startup accelerator (StartEngine). Worked for several major brands like Toyota, DIRECTV, Hitachi, and Raytheon. A mentor at LMU Entrepreneur School. And advises a dozen local LA startups building amazing tech in various industries; also invested in some.

Want to Work at a Startup? Optimize Your LinkedIn Profile With These Simple Tips

Want to Work at a Startup? Optimize Your LinkedIn Profile With These Simple Tips

If you’re looking for a job at a startup, no other social networking tool will be of greater help to you than LinkedIn. The vast majority of startups use it as their primary candidate search tool, so you need to do a version of SEO on your LinkedIn profile to make it stand out.

Even if you are happily employed, you owe it to yourself to be well represented on Linkedin, as you NEVER know what will come your way. LinkedIn is the first place companies go to find out about you.

Here Are The Must-Haves

Right from the very beginning, your profile has to stand out from the rest of the riff-raff. Startups are a lot about the mission of the company their building. Show why you are passionate about working for their company by sharing your experiences that align with their mission. Startups want to find someone who loves their company almost as much as they do.

So, first, make sure that you have the basic steps covered. This starts with a professional-looking profile photo to help them recognize you. It’s been found that you get 9 times more connection requests when you have a photo than when you don’t have one.

You also need to make sure that your profile is updated with the latest information. It must include your present industry, company, and position, so that you’re better able to connect with the content, groups, and jobs you’re interested in.

Your current location is also crucial, as this type of listing helps searches made by recruiters, former coworkers, and fellow alumni. With your location listed, you’re 10 times more likely to be found.

A good profile can immediately display your work affiliation and location, your contact info, and your list of connections. It can feature your education history, though you can also hide this easily if you don’t want to highlight it. You should also add videos and images to your summary.

Make your profile stand out from others by adding your FUN side to it.  Use emoji, symbols and visual cues in your profile will definitely help to make it stands out from the crowd in a positive way especially if you use them conservatively. Make sure you don’t overuse them. You don’t want your profile to appear unprofessional.

Keyword Your Skills

Recruiters spend hours searching on LinkedIn looking for top performers. And when they find them, they will contact the top performers. Knowing this, you’ll serve yourself well to market yourself as a top performer by highlighting your skills in the summary and experience section.

With the ever-increasing data available about you, the candidate, many companies are using innovative Artificial Intelligence (AI) tools to quickly weave out the low performers. AI technology has the ability to quickly sifts out keywords and key skills in your resume. Customize your profile with keywords that represent the required soft and hard skills found in the job listings. Incorporate these terms throughout your profile, particularly in the “Key Skills” and “Work Experience” sections will definitely help. Remember, hiring managers to need to know what industry you are an expert in, what technologies you are most fluent in, and which types of products/services do you have the most familiarity with.

You can start by featuring your top 3 skills on your profile. These are the skills for which you want to be recognized. You can also categorize your skills so that others will find it easier to find out if you have the particular skills they’re looking for.

One example of categorization is to have categories such as Skills in Technology and Tools, Industry Expertise, Interpersonal Skills, and Miscellaneous Skills. You should take care of the order of the skills you list within each category, as the most important ones should be at the top of the list. Don’t forget to update these lists as you gain more skills. Whether you learn a new program or even just a new musical instrument, include them all here.

These listings matter a lot, in case you still don’t realize their importance. If you have at least 5 skills on your profile, you’ll get 17 times more profile views. Recruiters and other people who can help you advance in your professional career can send up to 31 times more messages.

You can finish off the profile by adding more clues to who you are aside from your work and educational experience. Mention every charity or community work you’ve, and don’t forget to add new awards and accomplishments. Always update, as you’re never really done with your LinkedIn profile.

This might interest you: Top 5 Items that Job Seekers Need to Remove from Their LinkedIn Profile


 

Cadre is a quality over quantity boutique recruiting shop specializing in all things software engineering, robotics, artificial intelligence, and autonomous vehicles. Cadre is building a talent network utilizing AI and Machine Learning to help solve the tech talent crisis across their portfolio of 85 startups throughout California, Seattle, and Austin.

 

Jason Stomel
Contributor
Cadre Talent, Santa Monica, CA
Jason is the founder and CEO of Cadre; a talent agency, recruiting software incubator and Angel Investor. He has been recruiting in LA for 12 years across a portfolio of startups ranging from Pre-Series A to publicly traded tech companies and Venture Capitalists.
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Jason Stomel
Cadre Talent, Santa Monica, CA
Jason is the founder and CEO of Cadre; a talent agency, recruiting software incubator and Angel Investor. He has been recruiting in LA for 12 years across a portfolio of startups ranging from Pre-Series A to publicly traded tech companies and Venture Capitalists.

A 30-Point Checklist for Your Startup

A 30-Point Checklist for Your Startup

Do you want to make sure your new startup succeeds? Here’s a nice list of what you have to do for your startup.

Everybody seems wants to do a startup these days. But before you’re dazzled by the prospects of billions of dollars, here’s a list of what you really have to do first:

  1. Find out if your business is actually viable. It’s not enough to say that you’d buy something you offer. You have to determine with utmost honesty if you’ll have enough customers to actually make a profit.
  2. Come up with a business plan. This will help guide your path. Make sure you have financial projections in there so you know if you’re still in the right path.
  3. Deal with the financing. Figure out how much money you need to get your business started. Then see where you can get that money.
  4. Pick your business name. It should be original and memorable.
  5. Get your family to support you. It’s going to be hard enough to start a business, and it’s harder when your family thinks it’s going to fail.
  6. Set up your legal structure. You may need a lawyer for this. Incorporating your business is essential, so you can protect your personal assets.
  7. Apply for an Employer Identification Number. Don’t worry; EIN numbers are free. This number will be needed when you incorporate or open a bank account solely for your business. You can also use this in lieu of your social security number.
  8. Apply for a business license. Check with the SBA for what to do.
  9. Open a business bank account. You ought to separate your business and personal finances ASAP.
  10. Choose an accounting program. You don’t want your books to be a mess.
  11. Register a domain name for your business. Make sure it’s a real commercial domain name. A website with free hosting looks to amateurish.
  12. Start building your website. Nowadays, not having a website for your business is suspicious.
  13. Set up your social media profiles. You need to reserve your brand ASAP. You also get ready to market on these social media channels later on.
  14. Begin generating revenue immediately. Don’t wait until things are perfect. You’ll need that revenue to add to your financing.
  15. Determine if you need an actual office. If you can do everything online, then you can use your money for other expenses as you hold off getting an office. But you’ll need an office if you expect customers to actually meet with you.
  16. Get some business cards. They’re nice and handy marketing materials, and they’re helpful for networking.
  17. Define the responsibilities of all cofounders. These should be in writing, so there are no disagreements as to who has to do what as time passes.

After your launch, make sure you then do these things:

  1. Access free advice. Consult with friends who’ve started their own businesses, check with the local SBA, and find other online resources.
  2. Find the right business apps. These can help while you’re on the go.
  3. See if you need insurance. Your business may need health insurance, workers’ comp, or liability insurance.
  4. Hire an employee. Sooner or later, you’ll find that you can’t do everything yourself if you want your business to grow.
  5. Set up your source of inventory. You may also need suppliers and service providers.
  6. Get legal advice on patents and trademarks. Your lawyer can again definitely give good advice on this topic.
  7. Enhance your network. Tell your family and friends about your business. This doesn’t mean you nag them into buying your products. But they can introduce you to people and they can recommend your business to their own friends.
  8. Focus on making sales and attracting customers. Hold off on chasing business partnerships in the meantime.
  9. Practice your elevator pitch. You need to be persuasive when you encounter financiers, potential customers, and new hires.
  10. Back up your IT. You need to protect your sensitive information contained on your computers.
  11. Consider a salesperson. You may be the head salesperson of your startup at first, but you need someone to focus on day-to-day sales while you concentrate on other aspects.
  12. Pay attention to customer feedback. What your customers have to say can help improve your products and your approach.
  13. Try to find a mentor. Find someone who has already succeeded in your niche to help you out. Their advice can be tremendously helpful.

You may also like this list of 21 Excellent Productivity Apps

Founder, Editor-in-Chief
LAStartups.com, Schmoozd.com
A native Angeleno. John studied engineering at UCLA; founded Schmoozd, an offline social tech networking event in LA with 30,000 subs; ran a startup accelerator (StartEngine). Worked for several major brands like Toyota, DIRECTV, Hitachi, and Raytheon. A mentor at LMU Entrepreneur School. And advises a dozen local LA startups building amazing tech in various industries; also invested in some.
×
LAStartups.com, Schmoozd.com
A native Angeleno. John studied engineering at UCLA; founded Schmoozd, an offline social tech networking event in LA with 30,000 subs; ran a startup accelerator (StartEngine). Worked for several major brands like Toyota, DIRECTV, Hitachi, and Raytheon. A mentor at LMU Entrepreneur School. And advises a dozen local LA startups building amazing tech in various industries; also invested in some.

Blockchain: Trust Is Not A Binary Option

Blockchain: Trust Is Not A Binary Option

Trust doesn’t have to be an all-or-nothing proposition when it comes to Blockchain

Blockchain’s primary value proposition is decentralization, the idea that the “truth” can be validated without 3rd party intervention in a trustless environment.  As technology has proliferated over the last several years, we have seen the infrastructure incorporate many different types of protocols:

  • Public  – Fully open blockchains with no barrier to participating (eg, Bitcoin, Ethereum)
  • Permission – Private blockchains where a central entity controls access (eg, Orderers in Hyperledger Fabric)
  • Federated – A consortium of entities controlling the blockchain (R3 comes to mind)

Each of these options has a different take on “trust.”  There are some in the crypto space who feel the only groundbreaking solutions are the public, or “permissionless,” solutions.  Their argument is that a protocol is only decentralized when it is fully public, and only then can it reach the full potential of the blockchain.

It’s a fair point, to be sure.  How can you be decentralized if one or more entities are entrusted control access to the blockchain?  However, it occurs to me that this is a very binary view of trust – in reality, trust is more nuanced and multi-layered, like a set of qubits more than a simple 0/1 representation.

Every single day we maintain simultaneous levels of trust at the same time.  I trust my wife implicitly (I hope that is wise), while I have much less trust in the Lakers’ ability to win a title without LeBron.   I have varying degrees of trust in my employees based on past performance, while I have no trust in the cars speeding along my neighborhood street when I walk the kids to school.

Our entire day is defined by a cascading array of trust, depending on our situation.  We understand and accept this because trust is a tool we use to maximize our benefit in specific situations.  I’m not going into a conversation with my wife about whether to have a 4th child (spoiler alert – not happening) from a lack of trust, because the conversation would be utterly pointless.  Conversely, I’m not going into a startup pitch from a place of trust, because it would eliminate the healthy skepticism I’ll need to evaluate the opportunity.

Why wouldn’t the same concept apply to blockchain?  Does every system need to be fully permissionless to add value?  The security and decentralized nature of Bitcoin works great for payments between people who don’t know each other, but in certain environments, organizations can still benefit from blockchain with a degree of centralization, provided there is a healthy level of trust.  For a tight supply chain of organizations with the right incentives to work together, a federated or permission solution would do just fine.

Ripple uses roles to establish specific participants to act as transaction validators

I’ve heard the argument that blockchain technology isn’t needed in situations where a centralized approach is acceptable – a central database would do just fine.  Sure it may be fine, but why not use blockchain when the technology provides other value propositions out of the box – namely, transparency and immutability?

My point is this: because trust is a multi-layered concept in our daily lives, and blockchain can handle trust in many different ways, we should embrace its implementation to support more than just the no-trust situations.  Let’s not limit blockchain’s potential while we still shaping this exciting new technology.

Is Blockchain Truly Decentralized?

Chad Hahn
Contributor
Optimity Advisors, Inc.
Chad Hahn is a partner overseeing the digital & technology practice at Optimity Advisors. He is an entrepreneur with 20 years of experience in strategy, business development, operations, and technology, and has started and sold two successful service businesses. He has a strong background in software engineering and enterprise architecture, with deep expertise in both traditional and emerging technologies.
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Chad Hahn
Optimity Advisors, Inc.
Chad Hahn is a partner overseeing the digital & technology practice at Optimity Advisors. He is an entrepreneur with 20 years of experience in strategy, business development, operations, and technology, and has started and sold two successful service businesses. He has a strong background in software engineering and enterprise architecture, with deep expertise in both traditional and emerging technologies.