Good news. Sports Illustrated was able to sell lots of 2024 Swimsuit Calendars before laying-off the majority of its editorial staff.
The best selling issue of Sports Illustrated is the annual swimsuit issue. The annual swimsuit edition garners significant attention and sales due to its unique content, and appeal to a wide audience.
In November 2023, Sports Illustrated (SI), once a titan of the sports journalism industry, faced accusations of using Artificial Intelligence (AI) software to write news articles. SI media staff frustrations can be found on Reddit in posted comments like “I don’t care about any of you, I’m going to continue using ChatGPT to write brainless, incoherent, and un-fact-checked clickbait”.
The Futurism.com website found several articles on SI.com which, in addition to having poor grammar and clunky sentences, appeared to be written by authors whose bios were vague, and who had no other online presence beyond their website bios. The photos of the purported writers were apparently AI-generated, with one headshot of an “author” being available for purchase online under the tag “neutral white young-adult male with short brown hair and blue eyes”. Maggie Harrison, who reported the piece for Futurism, said the articles and bios were taken down immediately — after the public was made aware of SI’s AI-generated content — with no explanation or comment provided by Sports Illustrated.
A few days ago, Authentic Brands Group (which bought SI in 2019) announced a corporate-wide lay-off the majority of its white-collar workforce. Many see this corporate-wide lay-off as yet another example of the secular shift (decline in white-collar jobs, growth in blue collar jobs) that is now happening in America. Authentic Brands Group’s move to terminate jobs will likely result in the the end of the iconic Sports Illustrated publication.
Job Postings in Construction up + 52% (since Jan 2020)
Job Postings in Software down – 28% (since Jan 2020)
AI investments (in platforms like like ChatGPT) are expected to result in 2024 layoffs at major corporations (Google, Amazon, Blackrock, Citigroup), and a further substantial decline in white-collar job growth. White-collar job growth is now in recession territory, and the at the lowest level seen in many years.
A few days ago, Reventure Consulting published a YouTube explaining that since 1980, blue-collar job openings (Indeed.com) have grown from 32 million job opening (manufacturing, food service, construction) to 38 million job opening (in January 2024). During the same period of time (1980 – 2024) white-collar job opening grew from 15 million job openings (technology, finance, accounting, information systems, software development, media) to 35 million job openings.
In the last 12 months, however, corporate-wide lay-offs in white-collar positions has eliminated many high salary jobs in major cities. Wall Street is now rewarding improved corporate cost reductions, and improved market capitalizations, with improved stock prices. In the last 12 months the S&P500 is up 20%.
In response, Realtors and real estate management professions are again eagerly contributing to the narrative that potential buyers should have a fear of missing out (“FOMO”), that the Federal Reserve will soon start a big pivot toward substantially lower interest rates, in an effort to save the economy. In the past, the presumption has been that lower interest rates allow a tourism-based economy whereby absentee owners of short-term rental properties will provide local trickle-down benefits for local year-round residents of small towns like Pagosa Springs.
A closer inspection of Federal Reserve Economic Data (FRED) data, and Indeed.com data reveals a secular shift is now underway (white collar job openings vs. blue collar job openings). The data reveals that growing the middle class, and growing the local economy from bottom-up might be more effective (in the near-term) than relying on out-of-town vacationers.
Generally, blue-collar jobs are in-person jobs, where the workforce must show-up, and not perform their work from home.
Software job openings peaked (up 130%) in February 2022, at the same time when remote work and STR consumption by out-of-town visitors also peaked. Both anomalies have now substantially changed.
Current FRED data, and current Indeed.com data reveals that since January 2020 job postings in software are down 28%. In the same period of time (four years) job postings in construction are up 52% (since January 2020). Likewise job openings in manufacturing & food service — positions which can not be performed remotely — are also up in the last four years.
Food for thought. What does the secular decline in white-collar jobs (vs. growth in blue collar jobs) means for hyper-local economies.
Fortunately, Pagosa Springs does not rely on ChatGPT to attend important meetings like the Archeleta County Board of Health. In-person local journalism is an important tool for educating the public on the level of public attention required to ensure elected officials are taking the required steps to help grow the middle class, and to help provide the infrastructure necessary to grow the local economy from the bottom-up. Caring humans are also vital for asking the difficult questions like “Where were the citizens who had such strong opinions during the COVID crisis, and during the discussions about abandoning SJBPH?”.
Hank Lydick
Hank Lydick took ‘early’ retirement to build a home in Austin, Texas, and a cabin in Pagosa Springs, Colorado.