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Breaking Job News: America’s Job Market Faces a 3-Front War—AI, Fed Policy, and China’s Talent Grab

• Pete Newsome

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The headlines say the job market is holding firm, but is it really? Beneath the surface, wage growth is cooling, hiring appetite is softening, and the Fed’s latest moves reveal deeper cracks in the U.S. economy. In today's Breaking Job News, host Pete Newsome connects the dots between macroeconomic shifts, such as slowing immigration, rate cuts, and evolving labor-force growth, and the daily choices employers are making about headcount, training, and technology.

Within the enterprise, Pete examines how AI is transforming the workplace, compelling HR and IT to collaborate more closely than ever before. From Microsoft and Cisco to PwC and Indeed, companies are redefining job design and culture around “digital coworkers.” You’ll learn how this shift impacts org charts, accountability, and burnout, and how smart leaders are positioning AI as a collaborator, not a competitor.

He’ll also zoom out to the global stage, where a DeepSeek researcher warns AI could replace most jobs within two decades, and a new K-visa aims to attract top global tech talent. What does this mean for U.S. competitiveness, and how fast is automation really moving?

Stay tuned for practical takeaways on managing change, upskilling your workforce, and leading through uncertainty. Because at the end of the day, retention still hinges on one thing: great managers who inspire trust and guide teams through disruption.

 💬  What do you think: Do you see AI as a collaborator or a competitor in your job?

News Articles:
1. AI Is Upending Jobs. Corporate Tech and HR Are Teaming Up to Figure It Out: https://www.wsj.com/articles/ai-is-upending-jobs-corporate-tech-and-hr-are-teaming-up-to-figure-it-out-d6df71c9
2. DeepSeek Researcher Warns AI Could Wipe Out Jobs in 10 Years: https://www.businessinsider.com/deepseek-researcher-chen-deli-china-jobs-ai-risk-tech-2025-11 
3. Federal Reserve Bank of San Francisco - Policymaking Amid Change: https://www.frbsf.org/research-and-insights/blog/sf-fed-blog/2025/11/10/policymaking-amid-change/
4. China Rolls Out Its Version of the H-1B Visa to Attract Foreign Tech Workers: https://apnews.com/article/china-us-talent-tech-visa-h1b-4c5792cf1b9fec9a846ca002f9e383ae

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Pete Newsome:

Today's job market headlines include how HR and IT are teaming up to handle AI's workplace disruption, a Chinese AI researcher's new bold prediction, and China's new answer to America's H1B visa. But first, the U.S. economy is holding up, but the Fed sees early signs of a hiring slowdown. This is according to Mary Daly, who is president and CEO of the Federal Reserve Bank of San Francisco. She posted an article today titled Policy Making Amid-Change. It examines how the U.S. economy continues to show resilience despite multiple headwinds, including tariffs, shifts in immigration, deregulation, tax policy changes, and of course the AI-driven wave of technological innovation.

Pete Newsome:

Her post highlights that labor market conditions have weakened noticeably, which suggests demand for workers has fallen. Immigration declines have sharply reduced labor force growth from roughly 150,000 in early 24 to about 50,000 per month in early 25, but despite that, wage growth has slowed rather than risen, and that signals that labor demand is declining. And at this point, everyone who participates in the labor market, from workers to hiring managers, in my opinion, just needs to prepare for continued volatility. I believe that is what we can expect for the foreseeable future. And although anticipated interest rate cuts can offer short-term relief, and the Fed seems to signal that they're going to continue to do that, that won't solve the structural challenges tied to immigration and labor participation.

Pete Newsome:

And the Fed's tone in this article suggests caution, but also optimism that policy flexibility, supported by clear evidence, can help navigate both inflation and innovation successfully. It's easy to criticize them, but that's a challenging task with what's happening right now. It's a moving target. Everything seems to be a moving target. And as I said, I don't see that changing anytime soon. So interesting article, worth checking out. Next, AI is transforming the workplace so fast that HR and IT are becoming strategic allies. Who would have seen that coming? Not me. But the Wall Street Journal reports that corporate human resources and technology departments are now collaborating to manage AI's impact on jobs.

Pete Newsome:

Companies like Microsoft, Cisco, Moody's, PWC, and indeed are rethinking org charts to include what they call digital workers. Those are AI agents that complete human tasks. While these businesses and others are preparing for AI's impact, job cuts have accelerated. U.S. companies cut 153,000 jobs in October, which is nearly tripled the month before. And IDC forecasts that by next year, 40% of global 2,000 jobs will require working alongside AI agents, while also warning that AI-driven burnout could reduce productivity by 15% in 2027. So as a result of this, HR and IT leaders are focused on helping employees see AI as a collaborator rather than a competitor. I hear that a lot lately. It's almost constant. People worried that AI is going to take their job, so they're hesitant to adopt it, even though it's being forced by companies, and rightfully so, it should, or they'll be left behind the curve.

Pete Newsome:

So that's happening at a really rapid pace right now, and the workforce is having to figure all of this out. Moody's chief people officer summarized it by saying AI is the tool, the people are the power. I think that's great, and I buy into that, but the staff has to believe it. The workers have to believe it too. And I just know that is not a very prevalent thing in many companies where when AI comes in, the workers are afraid it's going to take their jobs, and rightfully so. Who wouldn't be? So it's definitely worth managing, and I understand why HR is needed now more than ever in that regard. Because this story really underscores how rapidly AI is moving from a technical challenge to a people challenge.

Pete Newsome:

And the partnership between HR and IT is no longer optional. I would say it's been less than smooth over the years and many times. And I say this as an IT staffing company owner who's often been in the middle of those battles, but it's becoming essential right now for workforce stability and productivity. And what I just find fascinating is how companies are treating this AI transformation as both a cultural and operational issue, and it's not just a technology upgrade. So this is going to happen for the foreseeable future. So companies are adopting it, the workers have to adapt. It's and there's going to be winners and losers as a result. So the companies that are focused on this collaboration, I think it makes a lot of sense. Don't leave it to chance. In other news, a Chinese AI researcher just said what most technology leaders won't: that automation could wipe out entire job sectors within a decade.

Pete Newsome:

This was at the World Internet Conference in Wu Zin, China, where Deep Seek senior researcher Chendelli issued a warning that artificial intelligence could replace most jobs within the next 10 to 20 years. I mean, 20 years is an incredibly long amount of time in the AI space. So is 10. I mean, so is five, quite frankly. So I don't think it's that groundbreaking of a statement. I believe we should be focused on a much sooner time frame than that. But nonetheless, he was there representing uh DeepSeek, which really doesn't make many public statements or appearances, but good for him. He called on technology firms to act as guardians of humanity by protecting human safety and helping society navigate the upheaval AI may cause. He also said that the world is currently in an AI honeymoon phase.

Pete Newsome:

I find that an interesting way to say it, and I tend to agree with him, where people are using it to enhance productivity, but still requiring human oversight. He cautioned this balance will shift as AI systems become increasingly autonomous with the potential to create widespread job displacement. He said technology companies should serve as whistleblowers, warning society of potential risks. That's happening in some cases, but at the same time, other AI companies specifically are fast-forwarding towards creating mass adoption of AI.

Pete Newsome:

And as automation accelerates, it's not hard to imagine in the not too distant future where routine work is handled largely by machines. And many people are still skeptical of that. I think that's what scares me in this because I'd much rather be overly cautious here. And it sounds like that's a stance he's taken too. So I'm really glad to see an article like this because it captures what I consider to be an important and growing truth that AI transcends borders. This is not about US and China. This is about what it could do to the world. And AI's biggest challenge isn't technical, it's human.

Pete Newsome:

So this call for technology companies to behave really with looking out for humanity as a whole, I think makes a lot of sense. It should resonate not only with business leaders, but hopefully political leaders everywhere. And finally, for today, China just launched its version of the U.S. H1B visa, and it's coming for global technology talent. Their new program is aimed at attracting foreign professionals in AI, robotics, and semiconductors. And unlike existing visas, it doesn't require a job offer before applying. And this move follows U.S. restrictions under President Trump, including raising H 1B visa fees to $100,000, which could push global talent to explore alternatives.

Pete Newsome:

But despite that, China faces obvious hurdles from censorship and language barriers to domestic tension. And this is happening while there's currently 18% youth unemployment over there, and that's ages 16 to 24, excluding students. So massive unemployment among young people. Sound familiar? We're not nearly that extreme over here with our entry-level job hiring challenges right now, but it's not a coincidence either. That what's we're seeing in China is similar in many ways to what we're experiencing over here in the U.S. Um, and look, there's no question that the US remains more attractive for countless reasons, but China is clearly trying to seize on this moment with all the uncertainties around visa visas happening here right now, and they're trying to attract the best talent on the planet in the technology space. So my take on our visas remains the same as it has been for more than a decade.

Pete Newsome:

It serves an incredibly valuable purpose, but only when it's used as intended. And the the best thing we can do is shut down the abuse and make sure that we're focused on bringing in the talent it's intended for. And maybe now more than ever, since China's trying to do the same thing. It's not something they've historically done. The Trump administration has taken a step, a very necessary step, in the right direction. But we need to not take our foot off the gas with this either. And I'm sure I have no doubt that they will pay close attention to what exactly China's doing with their programs right now.

Pete Newsome:

So that will be interesting to monitor over time. Before we close today, those are your headlines. Here's a fun fact, maybe not so fun fact, but the most common reason for an employee to quit their job is a bad relationship with their boss. You might think it's money or commute or difficulty at work, but if it is, if there's someone who's having a challenge at work, it can almost always be solved or exacerbated by their relationship with their boss. And so if you're a manager out there, pay close attention to that, treat your team well, and odds are they'll probably stay with you a really long time. So those are your headlines for today. Thank you for listening. Please like, subscribe, share with anyone who you think might be interested, and I look forward to talking to you tomorrow.