SUE HERERA, NIGHTLY BUSINESS REPORT ANCHOR: Good evening, everyone.
And welcome to a special Labor Day edition of NIGHTLY BUSINESS REPORT. I`m
Sue Herera. Tyler is off tonight.
Labor Day, a day dedicated to the American worker. It`s the perfect
time to discuss employment, a key gauge of economic health that everyone
has an eye on.
Tonight, we`ll examine the important issues that lie ahead for the job
market from minimum wage to where the jobs are. We`ll find out which parts
of the country are geared up for growth, and we`ll even tell you the best
cities for pay raises.
We begin tonight, though, with a look at how the work force is
evolving and how that evolution is creating opportunity. The sharing
economy, for example, is fueling a boom in nontraditional positions, and
allowing people to make a full-time job out of part-time work. The digital
revolution has created problems that need solving, like cyber threats, and
The solution? Trained employees.
Mary Thompson traveled to companies who are looking for these new
types of workers and she`ll tell us where the jobs are and what skills are
MARY THOMPSON, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over): A
painter since childhood, 29-year-old Maria Walton says her art makes her
good at her job.
MARIAH WALTON, LINKEDIN DATA SCIENTIST: I have an image of everything
in my brain and I feel like that has actually been a really good strength
in joining disparate data sets together.
THOMPSON: Always an artist, once a meteorologist, Walton is now a
data scientist at the networking site LinkedIn (NYSE:LNKD). Her job is so
sift through the billions of data filed generated by clicks on the
LinkedIn`s Web site. That`s information from this big data is seen helping
the firm serve its clients and advertisers better.
But it`s not just tech firms like LinkedIn (NYSE:LNKD) mining big
data. All industries do it these days, putting a premium on workers like
SHERRY SHAH, LINKEDIN HEAD OF DATA RECRUITING: Job market is very
hard data. Data fielders actually very sexy and it`s in demand. So, it`s
super hard to find right talent and the right people.
THOMPSON: That demand leading the consulting firm McKinsey to
forecast a coming shortage of big data analysts.
MICHAEL CHUI, MCKINSEY GLOBAL INSTITUTE: In 2018, we sized a
potential gap of 140,000 to 190,000 positions in United States alone.
THOMPSON: LinkedIn`s head of data recruiting Sherry Shah will hire
over 100 data scientists this year, a 50 percent increase from 2014. She
says competition for talent often leads to bidding wars for workers who,
depending on their background, can command a six-figure salary.
(on camera): So, LinkedIn (NYSE:LNKD) keeps its mind and eyes open
when looking for talent, searching its own Web sites, recruiting at tech
talks and conferences, and taking a chance on people like Walton who don`t
have a background in computer science.
People like Jerrod Lowmaster. The 31-year-old working in intelligence
and the solar industry before landing at LinkedIn (NYSE:LNKD).
JERROD LOWMASTER, LINKEDIN DATA SCIENTIST: The one common thread I
think that really unifies those is I was in a place that had a great deal
of data. And it really wasn`t structured. And there were these
interesting and really critical important business questions that we wanted
to ask of the data.
THOMPSON: Questions big data miners like Lowmaster and Walton see
helping their employer answer the big questions that face business today.
In the war against cyber criminals, 30-year-old Richard Hobson is one
of the newest recruits.
RICHARD HOBSON, NEW RECRUIT: What I like best is, it doesn`t feel
like a job.
THOMPSON: A former welder, Hobson now interns at Morgan Stanley
(NYSE:MS), having completed a three-month training program called SC3 or
Symantec (NASDAQ:SYMC) Cyber Career Connection.
HOBSON: We`re looking for any vulnerabilities, any threats that can
compromise personal information and data that`s highly regarded to the
THOMPSON: Costing businesses an estimated half billion a year, cyber
attacks show no signs of slowing down, and that`s fuelling growth in a
sector Symantec (NASDAQ:SYMC) estimates will have 6 million jobs by 2019,
but only 4.5 million people to fill them.
AMY CAPPELANTI-WOLF, SYMANTEC CHIEF HUMAN RESOURCES OFFICER: And the
market`s hot right now, because every time you open up a newspaper, there`s
another cyber security attack going on.
THOMPSON: The higher demand means higher salaries. The job analytics
firm Burning Glass Technology says on average cyber security jobs pay
$84,000 a year. That`s 9 percent more than your typical IT job. Still,
these positions are tough to fill.
Burning Glass CEO Matthew Sigelman says that`s because candidates need
technical chops and a deep knowledge of the industries they`ll defend, like
health care, retail, or finance.
MATTHEW SIGELMAN, BURNING GLASS TECHNOLOGIES CEO: About 84 percent of
cyber security jobs require a college degree, 70 percent of them require
multiple years of experience in a field that really didn`t exist multiple
THOMPSON: So, to build a pipeline of workers, Symantec (NASDAQ:SYMC)
head of human resources Amy Cappelanti-Wolf is looking beyond the walls of
higher education and expanding SC3, a program focused on training
minorities and women.
CAPPELANTI-WOLF: Eighty percent of them have GED or equivalent
degrees. So, it`s a workforce you wouldn`t normally have access to or they
wouldn`t have access to.
THOMPSON: Hobson is among 31 SC3 graduates who take courses,
including ethical hacking and security plus.
HOBSON: It`s changed my life in many ways.
THOMPSON: And for Symantec (NASDAQ:SYMC), it`s changing the way it
develops workers to fill critical jobs available now and in the future.
For Emily Cherin, a six-month search for a full-time job ended lots of
part-time work through Task Rabbit.
EMILY CHERIN, TASK RABBIT: My world just sort of exploded.
THOMPSON: The New Jersey native and former teacher, broadcaster and
chef, finding strong demand for her writing, cooking and other skills
through the online odd jobs marketplace.
CHERIN: I`ve been hired to write a love letter and deliver a
THOMPSON: Cherin, one of the 33 percent of workers in the U.S. who
are freelancers, a number seen growing to 40 percent by 2020 according to a
study by Intuit (NASDAQ:INTU).
ARUN SUNDARARAJAN, NYU STERN SCHOOL OF BUSINESS PROFESSOR: These on-
demand marketplaces are expanding freelance well into the territory that
used to be occupied exclusively by full-time employment.
THOMPSON: Professor Arun Sundararajan says this sharing-driven shift
benefiting high-quality freelancers whose work is noted in online reviews,
generating more jobs for these freelancers at higher pay.
SUNDARARAJAN: The wage rate on Task Rabbit across every profession
are significantly higher than the Bureau of Labor statistics averages for
those same professions.
THOMPSON: Still, Task Rabbit CEO and founder, Leah Busque, says while
10 percent of the firm`s 30,000 taskers make part-time work their full-time
job, most tasks to make ends meet.
LEAH BUSQUE, TASKRABBIT FOUNDER & CEO: Ninety percent of the
community is actually utilizing this to pay one to three bills every single
THOMPSON: Doing two to three tasks a day —
CHERIN: So, I`m on my way to New York City to complete a task,
picking up party goods at Party City.
THOMPSON: Cherin grosses about $3,500 a month after Task Rabbit takes
As much as Cherin loves the ever-changing nature of her job —
CHERIN: Nice to meet you.
THOMPSON: — at her age, she wants the stability of a full-time job.
CHERIN: I want to know exactly what I`m making.
THOMPSON: The income uncertainty a problem for many people who work
on their own, a problem the founder of the Freelancers Union, Sara
Horowitz, believes could be partly solved by a government-run worker-funded
rainy day reserve.
SARA HOROWITZ, FREELANCE UNION FOUNDER & EXEC. DIR.: You could
imagine the people could be able to put away pretax amounts into an
THOMPSON: One way of providing protection to a fast-growing sector of
For NIGHTLY BUSINESS REPORT, I`m Mary Thompson in New York City.
HERERA: This year, the debate over wages has been front and center.
The federal minimum wage remains stalled at $7.25 an hour. The amount it`s
been at for the past six years.
Slowly, cities have been taking the issue into their own hands, and
hiking pay. But not all small businesses are waiting for their city
council to decide how to best compensate workers.
Kate Rogers (NYSE:ROG) tells us what Main Street is doing to level the
KATE ROGERS, NIGHTLY BUSINESS REPORT CORRESPONDENT: Bar Marco, a
small restaurant in Pittsburgh, Pennsylvania, implemented a flat wage of
$35,000 a year for its employees this spring. Servers and backup house
staff are now on an even playing field. They also get a stake in the
restaurant via profit sharing and health insurance.
JUSTIN STEEL, BAR MARCO CO-OWNER: A lot of times restaurant
employees, it`s viewed as a job, not as a profession or career. The people
that we have here don`t think of it like that. This is a career for them.
So, we want to treat them more like that and pay salary and offer benefits
and health care — the things that you normally associate with a real world
ROGERS: Workers are gearing up to receive their first quarterly
bonuses ever, practically unheard of in the restaurant industry. Though
employees like Zac Cerquerda are paying close attention to store
ZAC CERQUERDA, EMPLOYEE: It`s more of just working smarter. So, I
mean, if we see something that needs to be used up, if it doesn`t, it`s a
sense, you know, not only the restaurant loses money, but I`m losing money.
ROGERS: While the common message on Main Street is small businesses
can`t bear the burden of wage hikes not driven by the market, some are
proving that theory wrong, paying well above both state and federal wages.
Across the country, at Earth Friendly Products in Garden Grove,
California, Kelly Vlahakis-Hanks paying her workers $17 an hour. The
household cleaning product manufacturer has always paid above minimum wage,
because she says it`s the right thing to do. The company has facilities
across the country, and retails in big name stores, including Walmart.
KELLY VLAHAKIS-HANKS, EARTH FRIENDLY PRODUCTS: If the minimum wage
had been adjusted for inflation over the years, it would be nearly $22 an
hour. And, of course, I`m not advocating taking it that high at this
juncture, but we realize we needed to do something to create a living wage
for our employees.
ROGERS: True to its mission, ESP also gives rebates to workers who
install solar panels on their roofs or drive green vehicles. Workers say
it`s made all the difference.
BELINDA MARTINEZ, WORKER: Most of my money went to paying child care,
and then I was left with a couple of dollars, and I had to decide, OK, what
do I want to do, do I want to pay my utility bills, or do I want to bring
food to the — you know, for my family? But now, with this increase, we
have a home now, and we have transportation. And I`m able to provide for
ROGERS: For NIGHTLY BUSINESS REPORT, I`m Kate Rogers (NYSE:ROG).
HERERA: Coming up next, looking for a raise? You might want to
consider moving. We`ll tell you where you have the best chances of upping
HERERA: As you probably know, small businesses are seen as the engine
of job creation, which is why cities are looking to lure startups with
incentives, and it`s working. Just as the typical American worker is
transforming, there has been a major shift in the places that are deemed
the best for starting a new business.
Kate Rogers (NYSE:ROG) takes us to two cities seeing massive business
growth, and they`re nowhere near Silicon Valley or New York City.
ADAM KLEIN, AMERICAN UNDERGROUND: We like to describe it as a place
that has a Silicon Valley-like vibe but with really good barbecue.
ROGERS: For entrepreneurs looking for an alternative to San Francisco
or New York, Durham, North Carolina, is billing itself as the new startup
capital of the south. A former tobacco warehouse turned startup campus is
now home to 240 early stage companies in an incubator called the American
But perhaps what`s more impressive is that after these companies get
off the ground, they aren`t fleeing for the coast, they`re staying put.
KLEIN: Many of those companies find the area to be relatively sticky.
So, it`s an incredible asset base in Durham, and the trial with all the
great universities that are here, venture capital firms and things like
that. So, many of these startups when they come find that they really like
it, there is a great quality of life and they end up staying.
ROGERS: Tatiana Birgisson created her energy drink brand Mati Energy
while studying at Duke University. She grew out of Duke incubator and into
the American Underground that her company continued to expand into stores
like Whole Foods across the Southeast. She even won last year`s Google
(NASDAQ:GOOG) demo day, securing $100,000 investment from AOL`s Steve Case,
but she is not planning to relocate any time soon.
TATIANA BIRGISSON, MATI ENERGY: Durham is where my company was born.
It`s where my first customers were. It`s a great place to live. The
quality of life is fantastic.
ROGERS: Durham is on the short list to receive Google (NASDAQ:GOOG)
Fiber, which is Google`s high speed Internet product in the near future,
and the American Underground is a Google (NASDAQ:GOOG) for entrepreneurs`
tech hub. Meaning, they receive both financing and mentorship
opportunities for their startups from the Internet giant.
Kerri Patterson took advantage of those opportunities by applying to
the Landing Spot, a program giving workers laid off from nearby Research
Triangle Park a second chance.
KERRI PATTERSON, MY FAMILY CLOUD: It meant everything to us because
you have unlimited resources that you can tap into. The American
Underground provided us some structure, teaching us how to do our message,
teaching us what does it mean to do lean startups?
ROGERS: Patterson is living her dream now of being her own boss. She
launched My Family Cloud last year. She`s reinvesting herself in a place
that is reinventing itself, from Tobacco Road to an entrepreneurial hotbed.
Austin, Texas, may be known for live music and barbecue, but these
days, it`s gaining steam for something else — its vibrant startup team.
At age 14, Isabella Rose Taylor is one of Austin`s rising small
business stars. This year, she was awarded Emerging Women-Owned Business
of the Year by Governor Greg Abbott.
Taylor launched her company at age 10, graduated high school at 11,
and went on to show at New York and Austin fashion weeks, even landing her
clothes in Nordstrom (NYSE:JWN) stores.
ISABELLA ROSE TAYLOR, ENTREPRENUER: It all started with art for me.
I`ve been painting since a very young age and that led me to fashion
through way of sewing. I was doing a lot of mixed media, incorporating
fabric into my art and that led me into an interest in sewing. I took a
sewing class and I fell in love with the world of fashion and haven`t
ROGERS: Her fashion week debut was thanks in part to Austin-based
tech powerhouse Dell (NASDAQ:DELL) and its women entrepreneur network.
Start-ups are launching at record rates here in Austin. In fact, in
2015, there were an average of 550 new entrepreneurs per month in the
metro, according to the Kauffman Foundation.
Technology companies like Spiceworks which has raised a total of $111
million in capital venture funding so far are laying the groundwork for an
alternative tech scene to rival both Silicon Valley and Silicon Alley. In
fact, the social network for I.T. pros just snatched a big hire in new CFO
Amir Movafaghi, a former Twitter executive.
JAY HALLBERG, SPICEWORKS: Austin is absolutely achieved critical mass
on at least our scale in terms of the number of companies that are hiring
people. I think producing good business leaders. We`ve always had good
tech talent here. I think we`re now developing new business tech leaders
So, I think there`s critical mass not only for the companies that are
here now but also those that have come that hopefully — and maybe some of
us are producing sort of the Austin-style of managing tech companies.
ROGERS: And for new we are startups, there`s a Capital Factory, an
incubator accelerator and fund all rolled into one. At any given time,
they are up to 400 start-ups in residents, working and hoping to become the
next big thing.
MELLIE PRICE, CAPITAL FACTORY: There`s a lot of overlap in what has
historically been the live capital music of the world, has a lot of
creators. And so, we have — I think by nature, we have a culture very
innovative as a city. We have university that has a lot of great talent.
We`ve been blessed with some extraordinary successes that have created an
ecosystem where there`s other angel investors that are willing to invest at
an early stage.
And I think Austin has sold itself over the years. Where else can you
eat breakfast tacos?
ROGERS: For NIGHTLY BUSINESS REPORT, in Austin, Texas, I`m Kate
HERERA: But what about those of us who aren`t taking the plunge and
going out to start a business on our own? You`ve heard of moving for lower
taxes, and better schools — well, how about a higher income? The salary
research company PayScale took a survey to find out where you have the best
chances of getting a higher than average raise.
Here to discuss the findings is PayScale`s Katie Bardaro.
Nice to have you here.
She`s chief economist at Pay Scale, a compensation research firm.
KATIE BARDARO, PAYSCALE CHIEF ECONOMIST: Thank you for having me.
HERERA: Let`s start, first of all, before we get to the cities that
you might want to consider moving to for a better raise, let`s talk a
little bit about the complexion of raises. Are we seeing significant
percentage moves in raises this time around? Or is it pretty steady?
BARDARO: Yes. Well, raises have remained relatively stagnant over
the last few years. But the good news is, they have improved since the
HERERA: By how much?
BARDARO: A couple of percent. We`re looking at raises closer to 2-
ish percent during the Great Recession. Now, it`s pumping up against 3.5
percent to 4 percent.
HERERA: OK. Also, instead of a straight raise, now employers are
adding bonuses and incentives. So, the complexion as I said of what a
raise is has changed.
BARDARO: Exactly. Surveying over 4,000 organizations, we found that
almost 76 percent of them are now offering more incentives as part of the
total compensation package compared to only about 70 percent in the early
HERERA: All right. So let`s take a look at the three best cities, or
places that you might be able to get more bang for your buck in terms of
your employment. We have Dallas, Texas, Minneapolis, and Seattle. What do
BARDARO: The main thing that they share is a strong tech presence, or
in Minneapolis`s case, a biotech or bioscience presence. That`s a really
hot competitive field, where competition for talent is working together to
drive up wages across the region.
HERERA: And the three worst cities for raises, I wouldn`t want to be
on this list, Houston, Texas. Well, it`s been hit hard by energy falling,
New York, and Riverside, California. Are there any threads of similarities
BARDARO: Similar to the top three. The bottom three are there
because of their dominant industries, or what they`re really seeing in
terms of their market trends in those industries. So, Houston, as you
mentioned, has taken a hard hit with the falling gas prices. It used to be
a real kind of leader for wages. But it`s been relatively lackluster the
last few quarters.
HERERA: All right. Katie, we`ll leave it there. Thank you very
much. Appreciate it.
BARDARO: Thank you.
HERERA: And for the full list, head to our Web site, NBR.com.
Coming up, imagine no college degree and a starting salary of 70 grand
a year. Meet the entrepreneurs who are making that a reality.
HERERA: Students across America are headed back to school this week.
Here`s a nod to some of the things that come out of business school
classrooms. Steven Neil Kaplan, who`s a professor of entrepreneurship and
finance at Chicago`s Booth School of Business, explains to s now how
student concentrations are evolving with the times.
STEVEN KAPLAN, CHICAGO BOOTH SCHOOL OF BUSINESS: Entrepreneurship at
Chicago Booth just passed finance as the number one concentration. So,
we`ve had this huge increase in interest in entrepreneurship over the last
10, 15 years.
You can`t teach somebody to be creative, or to come up with a new
idea. I think that`s innate. But what we can absolutely do is increase
the likelihood you succeed if you have a good idea.
So, an example is GrubHub. GrubHub was a raw startup in my class in
2006. And we helped them a great deal in refining their business model,
helping them get funded, and today, that company is worth on the order of
HERERA: What a great success story.
But graduating with a business degree isn`t the only path toward
success. In fact, one of the most devastating issues the new American
worker is facing is student debt. It`s the norm to go to a four-year
school, take out thousands in loans, and hope someone will hire you so you
can pay off all the money you owe. That formula doesn`t work out for
Tyler Mathisen introduces you to two entrepreneurs, a Harvard grad and
a college dropout who are trying to make an education that pays off
MATHISEN (voice-over): Jen Eisenberg is a software engineer at
Paperless Post. That`s the online stationery stop. She helps write the
instructions or the code that make the web site function. A computer
science major? Not Jen. That foray lasted one semester.
JEN EISENBERG, PAPERLESS POST: I realize I couldn`t build anything
tangible. It starts with theory and algorithm.
MATHISEN: Instead, Eisenberg majored in linguistics, but spent the
summer before her senior year of college learning the basics of coding at
the New York City`s Flatiron School.
ADAM ENBAR, FLATIRON SCHOOL CO-FOUNDER AND CEO: We`re actually
graduating fewer computer science majors from college today than we were 20
years ago. That`s crazy. The Internet happened.
MATHISEN: Adam Enbar helped start the Flatiron School and he didn`t
study computer science either. After college, he wondered if his education
was really worth the hundreds of thousands of dollars he and his family
ENBAR: I didn`t feel like I had any real skills. The college degree
used to be the best investment somebody could make and that`s not really
the case anymore.
MATHISEN: He began working at a venture capital firm, looking for
ways to invest in fixes for higher education. He didn`t find much until he
heard about Avi Flombaum, a college dropout who was teaching people code
and helping them get jobs.
AVI FLOMBAUM, FLATIRON SCHOOL CO-FOUNDER AND DEAN: Code is just
giving instruction. Computers are stupid. They don`t know anything. We
just teach them everything.
MATHISEN: Flombaum taught himself to code as a New York City
teenager. He dropped out of college to write software for a hedge fund.
Later, he cofounded his own web based business. But on the side, he began
teaching others to code at meet-ups, workshops and coffee shops. Students
thanked him for changing their lives.
FLOMBAUM: I was like, wow, this teaching thing was really amazing,
like that was a profound amount of impact to have on someone.
MATHISEN: So, Enbar sent a tweet, and they met up for coffee.
ENBAR: He`s telling me about his hobby, all the while my mind is
melting. Like you are doing what most in education in America can`t do.
MATHISEN: Enbar figured they should start their own school.
FLOMBAUM: And I was like, no one is going to come to our school.
MATHISEN: Within days, though, Flombaum changed his mind. They
leased space, bought desks, and for $40,000 total, opened the Flatiron
School in October of 2012.
FLOMBAUM: Having vocabulary, how to give very clear instruction is a
science in itself.
MATHISEN: Only 6 percent of the applicants are accepted into
Flatiron`s four-month program. It costs $15,000. But 99 percent of the
graduates, nearly 500 in less than three years, have jobs. Average pay,
more than $70,000 a year.
TIFFANY PEON, CONSTANT CONTACT: My increase in salary was something
like 40 percent.
MATHISEN: Tiffany (NYSE:TIF) Peon studied music business management
in college. Now, she`s a software engineer at an online marketing firm.
PEON: I was a musician, a theater kid, it really doesn`t matter what
type of person or what kind of background, as long you want to learn it.
MATHISEN: Which is why Enbar and Flombaum see a future where coding
like reading, writing, arithmetic is a basic tool that can open the door to
FLOMBAUM: We just need to create a new way to teach people this
stuff, in a new kind of paradigm that doesn`t require a four years and a
master`s degree in linear algebra in order to take your first computer
HERERA: Flatiron offered classes in 13 cities across the country this
summer. The founders believe most jobs will eventually entail some level
of coding. And that`s why they believe it`s just not for computer science
And finally tonight, good news if you did some driving this holiday
weekend. You probably saved some cash. According to Gas Buddy, a gallon
of regular was $2.45 across the country. That`s the lowest it`s been
during a Labor Day weekend since 2004.
Overall, Americans were expected to have spent nearly $14 billion
these past three days, on things like hotels and eating out. According to
the U.S. Travel Association, that`s just a slight increase when compared
with last year.
And that is NIGHTLY BUSINESS REPORT for this Labor Day. I`m Sue
Herera. Have a great evening, everybody. Tyler will be back and I`ll see
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