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<ul class="summary-list"><li>Electricity and labor headwinds slow Amazon's data center buildout.</li><li>The company's predicament highlights challenges faced by the broader cloud industry.</li></ul><a target="_blank" class="" href="https://www.businessinsider.com/amazon-big-tech-cash-king-wall-street-wants-a-piece-2024-10">Amazon</a> is spending heavily on <a target="_blank" class="" href="https://www.businessinsider.com/ai-data-energy-centers-water-energy-land-2023-10">data centers</a> to support booming <a target="_blank" class="" href="https://www.businessinsider.com/amazon-ai-sales-machine-aws-google-microsoft-pressure-pay-speed-2024-9">AI</a> workloads, putting it on pace to build 240 new facilities by 2040, according to one estimate.These plans are increasingly running into physical constraints that are slowing the buildout, according to an internal document, people familiar with the matter, and emails obtained through a public-records request."Across the AMER region, we are experiencing headwinds in power, zoning and permitting, water, and workforce/labor that are providing challenges to our long-term capacity growth," the internal document stated, referring to the Americas market, Amazon's largest.As the biggest cloud provider, Amazon's predicament highlights broader <a target="_blank" href="https://www.businessinsider.com/ai-data-energy-centers-water-energy-land-2023-10">problems</a> facing the tech industry as generative <a target="_blank" class="" href="https://www.businessinsider.com/amazon-ai-sales-machine-aws-google-microsoft-pressure-pay-speed-2024-9">AI</a> upends the status quo. While more companies want access to cloud computing for AI initiatives, there's only so much power, water, and labor available to support these services.It's not just an Amazon problem. Sequoia Capital general partner David Cahn recently predicted data center delays across the sector."The need for more power and a better functioning grid was clear before AI," he wrote in a blog post. "Now, it is becoming urgent."<h2 id="4e19455f-0a20-458d-a775-e305cc9aed23">Energy demand is growing</h2>It may be natural for a company like Amazon, one of the largest and fastest-growing data center operators, to face these challenges when it is expanding at breakneck speed.Marc Wulfraat, president of consulting firm MWPVL, told BI that Amazon is probably rolling out even more than 240 data centers in coming years. That's because the cloud giant also leases space in buildings shared with other companies. Collectively, this building spree amounts to almost 75 million gross square feet of space, according to his estimates. That's the equivalent of roughly 27 Empire State Buildings.In an email to BI, Amazon's spokesperson said customers' energy demand "continues to grow," and the company is continuously working on ways to "efficiently build and operate data centers" to meet their needs."Nobody knows better than we do that building data centers is exceptionally complex, and by embracing that challenge, we've become really good at it over the years," the spokesperson added. "We're confident we can continue to build at a rapid pace to provide the cloud capacity our customers will need."<h2 id="3ffef594-735b-4945-a7b0-176832400209">Doubts about electricity supply</h2>Power might be the most scarce resource. US data center electricity consumption is forecast to triple by 2030, according to <a target="_blank" rel=" nofollow" href="https://www.linkedin.com/posts/bcg-on-energy_the-impact-of-genai-in-electricity-activity-7112787574032674816-uDEX/">Boston Consulting Group</a>, much of it to power generative AI. Bernstein Research recently <a target="_blank" href="https://www.businessinsider.com/ai-data-centers-us-power-grid-gpu-nvidia-cerebras-amazon-2024-7">estimated</a> that electricity demand for AI data centers could exceed supply in just two years without action.At Amazon, electricity shortages have been a major concern and a topic of almost every leadership meeting in recent years, according to the people familiar with the matter.Amazon is experiencing power-supply issues in Oregon, Ohio, and Northern Virginia, according to the internal document from May. For example, it noted that PacifiCorp, Amazon's Portland-based utility partner, has electricity shortfalls and generation constraints forecasted until 2030.This is leaving Amazon with unpredictable energy supply in some markets and a possible loss of "bridging" solutions that help maintain power during the early stages of construction."With the utility power headwind, we are seeing continued risk driven by transmission constraints as well as unexpected changes to committed/available generation, gaps in promised vs delivered incremental power, and potential loss of bridging power as utility infrastructure projects are delayed," the document explained.<h2 id="e085ef5b-5190-4456-935c-6cab05b23795">'Zombie' data centers</h2>In some markets, so-called "zombie" data centers exist. That's a term used by some Amazon employees who spoke with Business Insider about the electricity-supply problems.These facilities are also described internally as "operationally blocked" because the data centers can sometimes sit idle as they don't have access to enough power to run them, according to the people familiar with the matter.Amazon's spokesperson told BI the company is not familiar with these terms, but said there are a "very small number of cases" where the company decides to complete data center construction before building power is available. "These situations are all managed as part of the standard course of business," the spokesperson added.<div type="image" title="AWS CEO Matt Garman" height="4320" width="6751" msid="114502575" hostid="261" sizebytes="742626"></div>Amazon Web Services CEO Matt Garman recently spoke publicly about challenges related to AI data center buildouts, including accessing enough GPUs and power.During a podcast interview in August, he said customer demand is "mind boggling," which is requiring "a lot of investment.""We're probably going to be tight for the next little bit of time," Garman added.<h2 id="d47a3f17-b6c1-4c0c-91d9-5918b3a4761f">'Mosquitoes to light'</h2>The company is on the hunt for more energy. It's conducting "power studies" with utility partners to evaluate additional transmission capacity, which could result in more power allocation, according to the internal document.The company is also working on ways to reclaim stranded and retired power, the document said, likely in reference to the practice of redeveloping old power plants that have become inactive for economic or sustainability reasons.Amazon has been more actively seeking partnership opportunities with third-party colocation data center providers, one of the people said. At these facilities, Amazon would simply lease space, transferring the need to secure power to the data centers' owners.Additionally, Amazon has started looking beyond well-established data center markets, such as Northern Virginia and Arizona, and is expanding into newer regions like Indiana. Crowded data center regions are running out of power and other resources, making newer locations <a target="_blank" class="" href="https://www.businessinsider.com/ai-data-centers-energy-cloud-microsoft-chatpgt-amazon-google-2023-7">more appealing</a>.The company is also more aggressively pursuing alternative energy sources. Last week, Amazon <a target="_blank" href="https://www.businessinsider.com/amazon-invests-in-nuclear-for-aws-following-google-and-microsoft-2024-10">unveiled</a> a plan to lead a $500 million funding round to develop small modular nuclear reactors, following an earlier announcement to purchase a nuclear power plant in rural Pennsylvania."It's almost like mosquitoes to light — we are attracted to power," one of the people familiar told BI.Amazon's spokesperson said the company's data center expansion strategy considers several factors, including system resiliency and latency, the availability of renewable energy, and the local government's long-term commitment. Amazon is also constantly seeking ways to make its data centers more energy efficient by using carbon-free resources, in-house processors, and natural air cooling systems, the spokesperson said.<h2 id="82c2fbef-48d1-4af8-8635-cf74ee12697d">Higher costs in Silicon Valley</h2>In some cases, Amazon is paying higher prices to get its new data centers up and running.One example is an Amazon facility in Santa Clara, California, in the heart of Silicon Valley. For the last 2 years, Amazon has held talks with the city of Santa Clara to secure power for a new data center located near Levi's Stadium, the home of the San Francisco 49ers, according to a <a target="_blank" href="https://santaclara.granicus.com/player/clip/2140?view_id=1&amp;meta_id=190407&amp;redirect=true">city council meeting</a> held in July.Amazon is in talks for a 15-year, 20-megawatt proposal for this facility under the condition that the company pays the full cost of the energy, whether it uses the power or not, Manuel Pineda, the chief electric utility officer of the City of Santa Clara, said during the meeting. Amazon will have to pay up to 50% higher rates than normal and will be entitled to additional "financial assurances" to cover any contractual risks, Pineda added.As part of the deal, Amazon also plans to use the 20-megawatt power agreement for a second building on-site, which currently has no electric capacity, according to Pineda.Amazon's spokesperson told BI that this arrangement has not been finalized, and the project is progressing as expected.<div type="image" title="AWS Santa Clara data center planning slide" height="586" width="1056" msid="114502585" hostid="261" sizebytes="101810"></div><h2 id="5e7acce5-2a9c-4e0c-873a-74b683e1b0a3">Amazon escalates Santa Clara delays</h2>Amazon appears to be dealing with further delays in Santa Clara. On August 28, an AWS employee wrote to a city official about another facility, a former Owens Corning factory the company purchased in 2023. The email discussed delays at the site and noted that the problems are raising concerns internally at Amazon."Delays as significant as this unfortunately impact our ability to serve our customers which has resulted in escalation," said the email, which was obtained by BI through a public-records request.The next day, another Amazon employee wrote to a Santa Clara city official. "This is time sensitive," the staffer said. "AWS executives are highly concerned about the constant push in the results."<h2 id="a5ae3cc3-4484-42c7-a232-b1135b2bd3e0">'Straining' water infrastructure</h2>Another problem is water supply. A growing number of data centers rely on water instead of air to cool the servers and other equipment inside the facilities. This liquid-cooling technology <a target="_blank" href="https://www.businessinsider.com/arizona-running-out-of-water-data-centers-blame-microsoft-google-2023-6">requires a lot of water</a>.Amazon is "straining local jurisdictions' existing infrastructure" for water in some regions and is "dependent on long-term infrastructure upgrades or building our own solutions" to mitigate the issue, the internal document stated.There are zoning and permitting problems, too. Some local jurisdictions are not supporting the re-zoning of industrial property for data center use and have stricter environmental regulations, the document explained. Amazon is "working proactively" with local municipalities to solve these challenges, as they can impact its "future capacity options," the document added.Amazon is "one of the world's most water efficient operators" and its data centers are much more water efficient than the industry average, the company's spokesperson told BI.<h2 id="74b62895-25bd-411f-8890-035613989c55">'Lack of available skilled labor'</h2>An even bigger problem may be a lack of skilled electricians to build and run these data centers, according to the internal document and people directly involved in these Amazon projects.Electrical work is a major part of data center construction. But Amazon has struggled to find enough people to do the jobs, especially in rural areas, these people said. Amazon has talked to local colleges, general contractors, and labor unions in certain markets to increase the supply of electricians, one of the people said.<div type="image" title="amazon data center oregon" height="3072" width="4608" msid="114502582" hostid="261" sizebytes="883326"></div>A <a target="_blank" href="https://www.cnbc.com/2024/07/27/americas-demand-skilled-electricians-boom.html">shortage of skilled electricians</a> is a growing industry problem. According to last year's <a target="_blank" href="https://datacenter.uptimeinstitute.com/rs/711-RIA-145/images/2023StaffingSurvey.Report.12152023.pdf">Uptime Institute Data Center Staffing Survey</a>, more than half of respondents said they struggled to fill open positions due to demand outstripping supply."For workforce/labor, we are seeing a lack of available skilled labor," Amazon's internal document stated. "Which requires us to prioritize where we allocate these resources, and we are becoming increasingly reliant on more expensive travelling [primarily] electricians."Amazon's spokesperson shared <a target="_blank" href="https://www.aboutamazon.com/news/workplace/our-upskilling-2025-programs">blog posts</a> detailing its <a target="_blank" href="https://aws.amazon.com/government-education/workforce-development/aws-fiber-optic-fusion-splicing/">training programs</a> in this space, adding, "AWS has established a number of workforce development programs and collaborations with education institutions to help ensure a strong pipeline of talent."Do you work at Amazon? Got a tip?Contact the reporter, Eugene Kim, via the encrypted-messaging apps Signal or Telegram (<a target="_blank" rel="noopener noreferrer nofollow" class="c-link">+1-650-942-3061</a>) or email (<a target="_blank" href="mailto:ekim@businessinsider.com">ekim@businessinsider.com</a>). Reach out using a nonwork device. Check out Business Insider's <a target="_blank" rel="" href="https://www.businessinsider.com/insider-guide-to-securely-sharing-whistleblower-information-about-powerful-institutions-2021-10">source guide</a> for other tips on sharing information securely.

Amazon's AI data center dream runs into the reality of 'zombie' facilities, higher costs, and labor shortages 

<ul class="summary-list"><li><keyword id="22852732" type="General" weightage="20" keywordseo="Yuliia-Kuzmina" source="keywords">Yuliia Kuzmina</keyword>, a Ukrainian Army veteran, is training to be an <keyword id="20676967" type="General" weightage="20" keywordseo="electrician" source="keywords">electrician</keyword>.</li><li>Kuzmina now works at a <keyword id="20171004" type="General" weightage="20" keywordseo="power-substation" source="keywords">power substation</keyword>, many of which are under constant Russian attack.</li></ul>Yuliia Kuzmina's way of supporting her country is working at a power grid. Kuzmina, 32, is training to be an electrician in Kamianske, a city in eastern <keyword id="19895162" type="General" weightage="20" keywordseo="Ukraine" source="keywords">Ukraine</keyword>. "It's a hard job," she told Business Insider. "You are responsible for the lives of people who work there. Before issuing a work order, you have to carefully work out everything and make sure there is no live voltage in the line." Kuzmina is one of many women joining essential services as the <a target="_blank" class="" href="https://www.businessinsider.com/russia-have-to-scale-back-assaults-six-weeks-losses-ukraine-2024-7">war against Russia progresses</a>. Between January and May, the number of employed women rose from about 45,000 to nearly 48,000. Those numbers could jump: The number of women undergoing vocational training, like Kuzmina, rose 75% over the same period, to nearly 17,000, according to a <a target="_blank" class="" href="https://visitukraine.today/blog/4224/ukrainian-women-began-to-learn-male-professions-due-to-mobilization-how-the-labour-market-is-changing-against-the-backdrop-of-the-war#who-is-needed-at-kyiv-enterprises">state website.</a> Because of worker shortages in fields like driving, mechanical work, and road work, the Ukrainian government <a target="_blank" class="" href="https://visitukraine.today/blog/4224/ukrainian-women-began-to-learn-male-professions-due-to-mobilization-how-the-labour-market-is-changing-against-the-backdrop-of-the-war#who-is-needed-at-kyiv-enterprises">launched a program</a> that provides women with training vouchers. It allows them to receive free training in educational institutes or directly with an employer in their chosen profession.But Ukrainian women must still contend with employers and even family members who aren't always on board with more women taking traditionally male jobs. <h2>Serving in the Army</h2>Kuzmina is no stranger to difficult jobs. She served in the Ukrainian Army for two years. She joined the military in 2020 as a desk clerk, after studying accounting and bookkeeping. She later became a grenade launcher at the 46th separate assault, or the Donbas Battalion. But soon after <a target="_blank" class="" href="https://www.businessinsider.com/ukraine-war-four-regions-russia-lose-1-million-troops-walker-2024-7">Russia invaded Ukraine</a> in February 2022, Kuzmina's commander disbanded the unit because of a lack of resources. "We had nothing — no ammunition, nothing to defend ourselves with," she said. Her unit commander "told the battalion commander that: 'I am not going to waste my people as cannon fodder.'" She also had personal obligations. Heavy <a target="_blank" class="" href="https://www.businessinsider.com/russia-have-to-scale-back-assaults-six-weeks-losses-ukraine-2024-7">military operations</a> in her hometown, Torestsk, made it impossible for her ill father to receive treatment. She moved him to a different town and discharged herself from the military to focus on caregiving. <div type="image" title="Ukrainian soldier holding rifle" height="810" width="1080" msid="112455162" hostid="261"></div>In May, she wanted another way to actively support <a target="_blank" class="" href="https://www.businessinsider.com/trumps-running-mate-jd-vance-ukraine-worst-nightmare-analysis-2024-7">Ukraine's war</a> efforts and decided to join a local power substation. "Working in the electricity supply network is important to me because this highly critical infrastructure is currently under constant shelling," she said, about <keyword id="20049806" type="General" weightage="20" keywordseo="Russian-attacks" source="keywords">Russian attacks</keyword> on power facilities. "The enemy is attacking us from all sides. They are trying to bend us under their will." Attacks on Ukrainian energy facilities are part of the Russian campaign <a href="https://www.bbc.com/news/world-europe-68976135" target="_blank">aimed at introducing blackouts</a> across the country. Ukrainian President Volodymyr Zelenskyy said in June that Russia had damaged or destroyed more than half of Ukraine's power generation. There have been <a target="_blank" class="" href="https://www.reuters.com/business/energy/russian-attacks-that-have-pounded-ukraines-power-facilities-2024-06-14/">11 sets of missile and drone attacks</a> on power and gas stations in 2024 alone, per Reuters. Locals are concerned about how the infrastructure will hold up in colder months, when energy is required for heating. Ukraine, too, <a target="_blank" class="" href="https://www.reuters.com/world/europe/ukrainian-drone-attacks-russian-oil-refineries-infrastructure-2024-06-18/#:~:text=April%201%20%2D%20A%20drone%20struck,processed%2073%2C700%20bpd%20of%20oil.">targets Russian refineries</a> and oil terminals to <a target="_blank" href="https://apnews.com/article/russia-ukraine-war-attacks-power-grid-oil-f117d1493f690d2192c9f6c60cbcf32d">weaken the Kremlin's</a> military capability. <h2>Employment gap</h2>In its third year, the conflict has created a big need for workers. Tens of thousands volunteered to join the military, while <a href="https://www.bbc.com/ukrainian/articles/cd1px4z922wo" target="_blank">650,000 men</a> of conscription age had left Ukraine for European Union countries, Switzerland, Liechtenstein, and Norway by November, Eurostat estimated. The <a href="https://reporting.unhcr.org/operational/situations/ukraine-situation" target="_blank">United Nations</a> estimated that by the end of 2023, about 6.3 million people, mostly women and children, had left Ukraine as refugees, and 3.7 million people were internally displaced, creating a large gap in young, skilled workers. "It would be fair to say that there are both blue-collar and white-collar vacancies that are affected," said Yana Lukashuk, head of recruitment at Lobby X, a Kyiv-based job agency. "Men who joined the Army and women with or without children who fled the country from all domains have formed a huge talent gap on the market." Kuzmina, is one of two female employees at her power station, but is one of several women stepping up to fill blue-collar jobs that are now vacant because they were primarily occupied by men. "More and more female candidates are becoming factory workers, technicians, drivers, et cetera as they can do nothing else but to fill many important vacant jobs in some regions where men are lacking," Lukashuk told BI. <h2>Effects of a Soviet-era law</h2>One expert told BI that the trend is an especially notable feat because of a Soviet-era law that prohibited women from a list of about 450 occupations. Ukraine repealed the law in 2017, but its effects are still ingrained in society, said Olga Kupets, a labor economics professor at theKyiv School of Economics. There is still some legal debate over whether the restrictions remain, and some coaches and lecturers in the vocational education system are not ready to train women yet, Kupets said. Even if those two issues can be overcome, there is strong pushback from society, according to Kupets. "On one hand, there is a lack of people, lack of men, and there is official willingness from the government to help women work in these previously male areas," she said, about government training programs that have been introduced this year. "But at the very low level, we see this huge opposition and resistance from employers." There have been cases of companies opening up roles for everyone, but bosses discouraged women from applying, Kupets said. "This discrimination in the labor market comes from stereotypes, not only from men but also from women like mothers or mothers-in-law," Kupets said. Still, Kuzmina, the electrician, said she sees women working around her, and on social media. "I was in the army but I realized that I could not be useful there anymore," Kuzmina said. "But I want to help our country, our Ukraine. I could not just sit around." If you are from Ukraine and have a story to share about the war and how it has impacted your career, please reach out at: shubhangigoel@insider.com Correction: August 12, 2024 — An earlier version of this story misstated when Zelenskyy said Russia had damaged or destroyed more than half of Ukraine's power generation. It was in June, not last month. It also overstated what is known about Eurostat's estimate of 650,000 men having left Ukraine. That figure referred to men of conscription age but did not specify the reason all of those men left the country.

She grew up in Ukraine, studied accounting, and joined the army. But since Russia invaded, she did a hard career pivot — twice.

Thailand’s geographical proximity and affordability, along with its platter of delectable food, historical sites, pristine beaches and lively atmosphere, holds a particular appeal for Indian travellers. While tourists from India were forced to limit their travels to the Island country to a 15-day stay under a visa-on-arrival scheme until recently, the Thailand government is now extending its arms wider for us. Thailand's tourism sector has been strategically easing <keyword id="20166202" type="General" weightage="20" keywordseo="visa-regulations" source="keywords">visa regulations</keyword> to attract visitors from key markets like China and Russia. And now, the country has extended its visa exemption program, allowing visitors from these countries to vacation visa-free for up to 30 days until November 11, 2024. This move aims to revitalise its tourism industry, a key driver of the nation's economy. This is no doubt great news for those wanting to spend more time in the bustling city of Bangkok or immerse themselves in the rich culture and calm of its gorgeous temples. However, there are some rather glaring problems that Thailand is facing, thanks to climate change and the <keyword id="21610692" type="General" weightage="20" keywordseo="El-Nio-event" source="keywords">El Niño event</keyword> — that impacted India as well. <h4>Water shortage hits <keyword id="21610693" type="General" weightage="20" keywordseo="Phi-Phi-islands" source="keywords">Phi Phi islands</keyword> </h4> For instance, the idyllic islands of Koh Phi Phi, which attract many Indians every year, are facing a real-life challenge that's anything but relaxing — a severe water shortage after a scorching heatwave gripped Asia. The private company supplying water may have to cut off service entirely, according to Wichupan Phukaoluan Srisanya, president of the Krabi Hotel Association. Island authorities are scrambling for solutions, considering bringing in water from the mainland if the dry spell persists. However, they remain optimistic that the upcoming wet season in May will bring relief, and Wichupan insists that tourists planning trips shouldn't be deterred, claiming they can manage the situation. But whispers of trouble are already reaching potential visitors. Online forums and travel reviews are buzzing with warnings from returning tourists urging others to "check if their accommodation has fresh water" before booking. Some reports even detail tap water running dry in April. While Koh Phi Phi takes centre stage, the heatwave's impact isn't isolated. <keyword id="21563893" type="General" weightage="20" keywordseo="koh-samui" source="keywords">Koh Samui</keyword>, another popular Thai island, has also experienced dry and scorching conditions. Although the tourism board there assures visitors haven't been affected, the island reportedly relies on water trucks, significantly increasing operational costs for hotels. <h4>Island closure due to coral bleaching </h4> A popular island in southern Thailand, <keyword id="21605630" type="General" weightage="20" keywordseo="Pling-Island" source="keywords">Pling Island</keyword>, has been hit with a temporary closure due to extensive coral bleaching. This drastic measure by the Department of National Parks, Wildlife and Plant Conservation (DNP) highlights the growing threat climate change poses to our underwater wonders. Pling Island recently witnessed intense heatwaves along with many other islands across Thailand and Asia. Due to ocean warming and acidification, corals expel the algae living within them, leaving them pale and vulnerable — a process referred to as coral bleaching. Thailand’s pristine beaches and vibrant coral reefs are a major draw for visitors, generating millions in revenue. However, unregulated tourism also puts a strain on these delicate ecosystems. Thailand's proactive approach in closing Pling Island demonstrates a commitment to striking a balance between economic prosperity and environmental sustainability. While natural phenomena like El Niño contribute to warmer temperatures, scientists point to human-induced climate change as the bigger culprit. Warmer oceans are the new normal, with Asia experiencing a faster-than-average rise in temperatures. Pling Island's closure and Phi Phi’s water crisis serve as a stark reminder of that every system has a carrying capacity and we must honour it. It sends the powerful message that even paradise needs a break once in a while to ensure its future remains dazzling. While the tourism-reliant industry of Thailand could greatly benefit from more visitors, mindful travel would help secure the future of the countrymen.

Thailand is now welcoming Indians with open arms, but are its drought-hit islands really prepared for a tourism influx?

<ul class="summary-list"><li>A new model of public housing is gaining steam among Democratic lawmakers across the US.</li><li>AOC is behind a new bill to create a federal social housing developer.</li></ul>All over the country, skyrocketing rents and home prices have made housing one of the most urgent issues facing voters in this election.About half of renters <a target="_blank" class="" href="https://www.businessinsider.com/half-american-renters-ignore-key-financial-rule-on-housing-spending-2024-9">spend more than 30% of their income on housing</a>, while <a target="_blank" class="" href="https://www.businessinsider.com/housing-crisis-homeowners-struggling-mortgage-interest-rates-insurance-home-equity-2024-6">homeowners</a> are facing rising insurance premiums, home repair costs, and property taxes. At the same time, government housing aid for the neediest <a target="_blank" class="" href="https://www.nytimes.com/2023/12/19/us/politics/housing-aid-rent-costs.html">recently hit a quarter-century low</a>.Vice President Kamala Harris has zeroed in on the issue, <a target="_blank" class="" href="https://www.businessinsider.com/how-kamala-harris-plans-to-build-3-million-new-homes-2024-8">promising to</a> build 3 million new homes over her first term, send $25,000 in downpayment assistance to first-time homebuyers, and spend billions on housing innovation. But some progressive lawmakers in Washington want to go much farther.In September, two Democrats — Rep. Alexandria Ocasio-Cortez and Sen. Tina Smith of Minnesota — <a target="_blank" class="" href="https://www.businessinsider.com/aoc-democrats-build-european-style-social-housing-lower-home-costs-2024-9">introduced a bill called the HOMES Act</a> that would create a federal housing development authority charged with building and rehabilitating more than a million permanently affordable homes. The housing would be owned and operated by local governments, nonprofits, or some kind of cooperative, and rent would be capped at a percentage of income. The legislation aims to solve the fundamental issue plaguing homebuyers and tenants: a shortage of affordable homes."There has been a lot of talk about building new housing in this country, but too often we don't talk about who will be building that new housing," Ocasio-Cortez said <a target="_blank" rel=" nofollow" class="" href="https://x.com/SenTinaSmith/status/1836472272481386676">last month</a>. A spokesperson for Ocasio-Cortez didn't provide comment before publication of this story.The new developments would be so-called "social housing," which means it exists outside the for-profit market, caps rent at a percentage of income and is owned by the government, a nonprofit, or some kind of cooperative.Unlike traditional American public housing, which is usually reserved for low-income families, social housing is intended to be mixed-income. Under the HOMES Act, 70% of a given development's units would be reserved for low- and extremely low-income people, while 30% of homes would be reserved for people making up to the area's median income.But some pro-housing policy experts — who subscribe to the YIMBY, or Yes in My Backyard, movement — are skeptical that a federal social housing authority makes sense. They want to see more experimentation at the local level first and don't think many state governments — let alone the federal government — have the resources or know-how to do the work of developers and real estate companies.<h2 id="56639616-796e-430b-a657-ba434db7f258">Local and state governments are experimenting with social housing</h2>A 2022 trip to Austria changed how New York State Assemblywoman Emily Gallagher views housing.Gallagher, a Democrat who represents gentrifying neighborhoods in North Brooklyn, was struck by the stability created by social housing in Vienna. Residents "were not thinking about their rent getting raised. They were not worrying about being displaced and the things that consume New Yorkers' minds," she said.So, earlier this year, she introduced legislation to establish a new state housing authority tasked with building permanently affordable housing for both very low-income and middle-income New Yorkers.Progressive policymakers across the country, including Rhode Island and Atlanta, are exploring the model, too. California <a target="_blank" class="" href="https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240SB555">passed a bill</a> last year to study the concept. The wealthy DC suburb of Montgomery County, Maryland, <a target="_blank" class="" href="https://www.nytimes.com/2023/08/25/business/affordable-housing-montgomery-county.html">has already built its own</a> social housing.In Reno, Nevada, Mayor Hillary Schieve, who's prioritized housing in a state facing a severe shortage, argued that the success of a social housing effort would likely rely on the quality of the local housing authority and the partners it works with. "It just worries me because we aren't developers," she said. "You have to have very knowledgeable people at the table."While "high-capacity, wealthy local governments with political will" can make it happen, "Jenny Schuetz, an expert in urban economics and housing policy at the Brookings Institution, said many other localities lack the resources or know-how."The reality is many states and authorities are not going to be interested in building housing themselves," said Shane Phillips, a housing researcher at UCLA's Lewis Center for Regional Policy Studies.Unlike traditional public housing — which relies on fickle federal lawmakers to supply funding for maintenance and operations — the social housing that US lawmakers have proposed would be funded in part by marketing bonds and operated by a range of local organizations, including nonprofits and tenants unions.Schuetz is concerned that co-ops and tenants' unions might not be able to tap the kinds of capital that real-estate companies have access to and that's needed to continue investing in the buildings. Local housing authorities also have limited budgets. "The challenge is always where do you come up with the money 10 years out, 15 years out, when you have real capital expenses?" she said.<h2 id="3c31ea6f-abfe-4e31-af57-7237875ee96a">Tricky politics in Washington</h2>Federally funded public housing has a flawed history. Between the 1930s and the 1960s, the government <a target="_blank" class="" href="https://www.npr.org/2017/05/03/526655831/a-forgotten-history-of-how-the-u-s-government-segregated-america">reinforced racial segregation</a> by clustering public housing in poor Black and brown neighborhoods, even as it built highways <a target="_blank" class="" href="https://www.nbcnews.com/specials/america-highways-inequality/">that tore through those same communities</a>. A lack of ongoing congressional funding meant the housing deteriorated over time, and much has been demolished.Over the last several decades, the US has moved away from the tarnished model of publicly built and owned housing and embraced federal subsidies for privately built below-market-rate development powered by the Low-Income Housing Tax Credit.Under the Homes Act, the US Department of Housing and Urban Development would have to work with states and cities to take on the role of the developer. Schuetz argued that the federal government would have to outsource so much of the work to local governments and developers that a national approach would look pretty similar to the Low-Income Tax Credit model of development."Could HUD even hire a team of people who know how to work through the land development and entitlement and construction process in localities around the country?" Schuetz said. "There's a reason we've evolved from public housing to LIHTC."Congress would likely not support a federal social housing authority until there is evidence of its success at the state level.After states build out their programs, "it's far easier to go back and say, 'Okay, we need a national coordination entity to manage this,'" one national affordable housing expert, who requested anonymity to protect his relationships in Congress.Schuetz would also like to see HUD invest in a range of local pilot programs to experiment with different versions of social housing, evaluate them, and then help scale whichever model is most successful. "It's not as headline-grabbing and sexy as a social housing program, but would actually be a lot more effective and more likely to get through Congress," she said.

AOC and progressive allies want the federal government to build over a million homes. Even YIMBYs don't think it's a good idea.

<ul class="summary-list"><li>Zyn nicotine pouches are expected to return to more US shelves this year, said an executive.</li><li>Zyn saw 80% growth in Q1 2024, causing supply chain shortages in several states.</li></ul>Cans of popular nicotine brand Zyn will be back on more shelves before the end of the year.<a target="_blank" href="https://www.businessinsider.com/zyn-pouches-become-popular-some-workers-2024-3">Zyn</a> shipped 80% more cans in the US in the first three months of the year compared with the same period in 2023, Philip Morris International, the parent company of Zyn maker Swedish Match, said in late April.But that wasn't enough for consumers, and the company has had <a target="_blank" href="https://www.businessinsider.com/zyn-nicotine-pouches-out-stock-shortage-new-york-jersey-florida-2024-5">shortages across its supply chain.</a>A top executive now says that PMI is working on filling the gaps."We believe that we're going to be back to a normal situation in the course of Q4," Emmanuel Babeau, the chief financial officer of PMI, said at a Deutsche Bank conference last week.Babeau also said that the company is working on a new production location for Zyn in the US in 2025. He did not add details about the location or the opening date of the factory.In the spring, Zyn customers noticed fewer Zyn cans in stores and aired their grievances on <a target="_blank" href="https://www.reddit.com/search/?q=zyn+shortage&amp;type=link&amp;cId=4bbc5e90-5c31-4d46-8bcf-d292cea99105&amp;iId=9e5945b9-91ab-4214-a29f-46cba69197a7">Reddit forums</a>. In April, Babeau acknowledged "tensions" in the supply chain during the company's first-quarter earnings call.In late May, retailers and wholesalers in New York, New Jersey, and Florida confirmed the shortages <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-05-17/zyn-shortage-nicotine-pouches-out-of-stock-in-several-us-states">to Bloomberg</a>.<h2 id="175fdc08-b541-4d50-a068-cf88ca7ee86c">"It's just a part of the routine"</h2>Zyn has been available in the US since 2014 and has spiked in popularity recently. The colorful, flavored gum-like pouches have become a common "pick-me-up" among <a target="_blank" rel="" href="https://www.businessinsider.com/zyn-pouches-become-popular-some-workers-2024-3">office employees</a> looking to boost productivity. They have also become a staple with <a target="_blank" rel="" href="https://www.businessinsider.com/wall-streets-underground-drug-abuse-culture-cocaine-adderall-zyn-mushrooms-2024-1">high-powered Wall Street traders</a> and <a target="_blank" rel="" href="https://www.businessinsider.com/chuck-schumer-nicotine-zyn-republican-right-wing-2024-1">Republican lawmakers</a>. Loyal users of these pouches have said that Zyn has helped them <a target="_blank" rel="" href="https://www.businessinsider.com/zyn-nicotine-weight-loss-ozempic-health-risk-masculinity-2024-5">lose weight</a>, comparing them to the viral weight-loss drug Ozempic.Clay Coomer, a 36-year-old who works in marketing, said he and his colleagues have shared Zyn cans."If I need to have a challenging conversation with somebody or if I need to work on something that's a little bit more important than other things — like it's just a part of the routine," Coomer<a target="_blank" href="https://www.businessinsider.com/zyn-pouches-become-popular-some-workers-2024-3"> told Business Insider</a> in March.In February, Zyn parent company PMI<a target="_blank" rel="" href="https://www.businessinsider.com/zyn-pouches-become-popular-some-workers-2024-3"> reported</a> that nearly 385 million cans of the flavored <a target="_blank" rel="" href="https://www.businessinsider.com/people-are-putting-nicotine-pouches-in-their-butthole-penis-foreskins-2021-9">nicotine pouches</a> shipped in the US in 2023, up 62% year-over-year. The company expects to do even better business in 2024: At the Deutche Bank conference, PMI raised its US forecast for this year to 560 million cans, after saying it was <a target="_blank" href="https://www.businessinsider.com/zyn-nicotine-pouches-huge-increase-us-shipments-2024-2">aiming for 520 million</a> in February.PMI, which also produces Marlboros outside the US, has been pushing to create more smoke-free products, as cigarette smoking <a target="_blank" rel=" nofollow" href="https://www.who.int/news/item/16-01-2024-tobacco-use-declines-despite-tobacco-industry-efforts-to-jeopardize-progress#:~:text=Globally%20there%20are%201.25%20billion,1%20in%203%20in%202000.">declines worldwide</a>.<a target="_blank" rel="" href="https://www.businessinsider.com/people-are-putting-nicotine-pouches-in-their-butthole-penis-foreskins-2021-9">Medical experts</a> and <a target="_blank" rel=" nofollow" href="https://academic.oup.com/ntr/article/23/9/1590/6285126?login=false#255584865">research</a> <a target="_blank" rel="" href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4363846/">studies</a> warn nicotine — including in pouches — can be addictive and can have harmful effects on the body, including its cardiovascular and respiratory systems, BI <a target="_blank" rel="" href="https://www.businessinsider.com/zyn-pouches-what-are-nicotine-does-to-heart-body-brain-2024-2">previously reported.</a>The Food and Drug Administration has been cracking down on underage Zyn sales. In April, the agency said it <a target="_blank" rel="" href="https://www.fda.gov/tobacco-products/ctp-newsroom/fda-issues-warning-letters-and-files-civil-money-penalty-complaints-against-retailers-underage-sales">sent 119 warning letters</a> to retailers and filed 41 civil complaints for sales of Zyn to underage buyers last year and this year.

Zyn shortages continue. But the popular nicotine pouches will be back on more shelves later this year, an executive says.

<ul class="summary-list"><li>Demand for AI chips is heavily outstripping supply right now.</li><li>Sam Altman doesn't want OpenAI to be slowed down by a shortage of compute power.</li></ul>Sam Altman doesn't want OpenAI to be derailed by something as simple as a lack of microchips.But shortages of such chips, integral to the development of AI, have caused him and many other execs at tech companies seeking to emulate OpenAI's success enormous headaches.Since the launch of ChatGPT, demand for graphics processing units (GPUs) and other high-end chips has soared, with existing supply lines unable to keep up.Altman went as far as <a target="_blank" href="https://www.ft.com/content/dd9ba2f6-f509-42f0-8e97-4271c7b84ded">calling the crunch a "brutal" one</a> in November, while Microsoft even identified the shortages as a <a target="_blank" href="https://edition.cnn.com/2023/08/06/tech/ai-chips-supply-chain/index.html">potential risk factor for investors to consider</a>.Currently, these chips are sourced from a select few companies that control the market for AI processors. Nvidia wields the most power thanks to demand for its H100 graphics processing units (GPUs), a much-sought-after piece of kit that can cost <a target="_blank" href="https://www.cnbc.com/2023/04/14/nvidias-h100-ai-chips-selling-for-more-than-40000-on-ebay.html">over $40,000</a> each.But apparently, Altman is done relying solely on them: he's ready to start making his own.<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-01-22/nvidia-ceo-makes-first-china-tour-in-years-as-us-curbs-roil-ai">That's according to a report from Bloomberg</a>, which stated that Altman had been busy pitching heavyweight investors to back a new AI chip venture that would give his company a lot more control over its chip supply.<h2>Building a new supply line</h2>Typically, companies like Nvidia really only design chips before outsourcing their manufacture to specialists who operate expensive and complex fabrication plants, like Taiwan's TSMC and Intel.But a bunch of tech companies have started designing their own. In November, for instance, <a target="_blank" href="https://news.microsoft.com/source/features/ai/in-house-chips-silicon-to-service-to-meet-ai-demand/">Microsoft unveiled its new Azure Maia AI chip</a>, designed with large language model (LLM) training in mind. <a target="_blank" href="https://www.reuters.com/technology/google-unveils-enterprise-ai-tools-new-ai-chip-2023-08-29/">Google, meanwhile, unveiled a new chip design</a> last year for a similar purpose."I think the magic of capitalism is doing its thing here," <a target="_blank" href="https://www.ft.com/content/dd9ba2f6-f509-42f0-8e97-4271c7b84ded">Altman told the FT in an interview in November</a> when asked about efforts to rival Nvidia's chips. "A lot of people would like to be Nvidia now."<div type="image" title="Nvidia" height="3334" width="5000" msid="107082792" hostid="261" sizebytes="187146"></div>For Altman, however, it seems emulating Nvidia isn't the only goal.Though the OpenAI CEO had been weighing his own designs, <a target="_blank" href="https://www.businessinsider.com/openai-is-considering-making-its-own-ai-chips-chatgpt-2023-10">per a report in October</a>, the Bloomberg report suggested Altman's plans would involve not only designing chips but setting up an entire network of fabrication plants to manufacture them too.Altman would also work with "top chip manufacturers" as part of the plan. How they would work together remains unclear but it was reported the network would be "global in scope."The plan represents a do-it-yourself approach that would set his company apart from the rest by making it vertically integrated.That would mean <a target="_blank" href="https://www.businessinsider.com/openai-usage-policy-chatgpt-military-purposes-2024-1">OpenAI</a> would exercise full control over the chip-making process while rivals continue to chase supply from third parties or outsource manufacturing of their own designs to others.It's an incredibly costly plan that's by no means guaranteed, as Bloomberg noted the talks are still early.Hurdles for Altman would include securing the billions of dollars and expertise needed to build state-of-the-art fabrication facilities, as well as technical challenges in coming up with designs that can rival Nvidia's H100 units.Despite this, Altman's plan has already won fans.Adam Niewinski, managing partner at OTB Ventures, told Business Insider that Altman's potential investment in chip technology was a dual-purpose move."It's essential for the evolution of AI and represents a potentially lucrative investment opportunity given the massive anticipated demand in this sector'" he said.<h2>Stockpiling the strategy for now</h2>While Altman's grand plan may address shortages in 10 years time and beyond, for now many execs are scrambling to get as many chips as they can get their hands on.<a target="_blank" href="https://www.businessinsider.com/mark-zuckerberg-ai-flex-meta-nvidia-gpus-2024-1">Mark Zuckerberg proved as much in a video last week</a>, in which he outlined Meta's plans to secure around 350,000 Nvidia H100s, or "600,000 H100 equivalents of compute," by the end of the year in order to build "an absolutely massive amount of infrastructure" that supports his long-term goal of building open source AGI."It's become clearer that the next generation of services requires building full general intelligence," he said. "Building the best AI assistants, AIs for creators, AIs for businesses and more – that needs advances in every area of AI."

Sam Altman wants to solve the great AI chip shortage himself

<ul class="summary-list"><li>Russian soldiers are heavily relying on their personal cellphones to conduct operations in Ukraine.</li><li>Former US military officers say this practice shows a lack of secure communications options or discipline.</li></ul>Russian soldiers appear to be heavily relying on their personal cellphones to conduct military operations in Ukraine, using them for tasks like coordinating strikes and navigating the battlefield.Former US military officers say this trend underscores a lack of secure military communication options or discipline and leaves Russian soldiers vulnerable to Ukrainian attacks. Kyiv has previously used cellular data to then launch deadly strikes on Moscow's positions.Recognizing the problem, the Russian government is actively working to clamp down on this trend. Its lower house of parliament, the State Duma, recently proposed an amendment that would <a target="_blank" class="" href="https://www.cnn.com/2024/07/23/europe/russia-smartphone-ukraine-war-intl/index.html">allow its soldiers to be punished</a> for using their personal phones while fighting in Ukraine."Wearing gadgets while serving in a special operation zone will be considered a gross disciplinary offense," Russian state media <a target="_blank" class="" href="https://t.me/tass_agency/261998">reported</a> on Monday, saying "this follows from the amendments supported by the State Duma Committee on Defense."According to the conflict analysts at the Institute for the Study of War think tank, the amendment has widely been criticized by Russian military bloggers, who suggest that punishing soldiers for using their phones would interfere with battlefield operations, logistics, and command and control given the extensive use of personal devices on the battlefield.<div type="image" title="Russian military officers look at their smartphones while walking past the Kremlin in Moscow on April 24." height="4534" width="6100" msid="112066286" hostid="261" sizebytes="529156"></div>The analysts wrote in an <a target="_blank" class="" href="https://understandingwar.org/backgrounder/russian-offensive-campaign-assessment-july-23-2024">assessment</a> Tuesday that "Russian milbloggers claimed that Russian servicemembers significantly rely on their personal devices to transmit target coordinates to call for fire from Russian artillerymen and drone operators, to navigate frontline areas, and to coordinate between units."<h2 id="35170efd-6a7c-41f6-a88a-def2c9cf8d44">The dangers of personal phones</h2>Dan Rice, a former US Army artillery officer who previously served as a special advisor to Ukrainian military leadership, said relying on phones speaks to a shortage of adequate, secure military communications for Russian soldiers.This sort of thing has long been a problem for the Russians. "Realistically, the Russian military not enforcing 'no cellphone use' is because they will receive tremendous backlash," Rice, now the president of American University Kyiv, told Business Insider. "So they allow it, knowing use of unsecure civilian cellphones will result in more Russian deaths and mission failures."Mark Cancian, a defense expert and retired US Marine Corps colonel, said the ideal thing to do is to use custom-designed — and highly secure — military systems for communications. But this is expensive, whereas everyone already has their mobile phone, making that an attractive option, even if it's risky."This behavior says two things about the Russian army. On the one hand, it is adapting to circumstances on the battlefield, using civilian applications where military applications are not working," Cancian, a senior advisor at the Center for Strategic and International Studies think tank, told BI.<div type="image" title="Ukrainian soldiers prepare a BM-21 artillery vehicle in its fighting position in the Donetsk region on July 23." height="3400" width="5100" msid="112066288" hostid="261" sizebytes="824824"></div>"On the other hand," he said, "there are a lot of vulnerabilities which the Ukrainians are certainly exploiting."For instance, Ukraine can pinpoint the location of a Russian soldier through their cellular data. Multiple phones being used in a general area could give away larger troop activity, making it a possible strike option for Kyiv.One such incident occurred at the very end of 2022, when Ukraine launched a <a target="_blank" class="" href="https://www.businessinsider.com/himars-strikes-show-ukraine-uses-cell-phones-as-force-multipliers-2023-1">devastating precision strike</a> against Russian troops gathered in Makiivka, in the eastern Donbas region. Moscow then blamed the high death toll on its own soldiers, saying that Kyiv found their location thanks to their cellular data. There might have been other contributing factors, though.The other risk for Russia, Cancian explained, is that soldiers will send information across channels unencrypted, leaving the data vulnerable to interception by Ukrainian forces. He said that even though there are encryption apps are available, troops are sometimes just sloppy.Ukraine's military intelligence agency, the HUR, regularly publishes <a target="_blank" class="" href="https://t.me/DIUkraine/4120">audio of purported interceptions</a> from calls made by Russian soldiers. However, Russia is not alone in its cellphone usage; Kyiv's forces have also <a target="_blank" class="" href="https://www.reuters.com/world/europe/russian-lawmakers-seek-punishment-troops-using-smartphones-ukraine-war-2024-07-23/#:~:text=Mobile%20phones%20have%20been%20used,to%20Russian%20and%20Western%20officials.">used their mobile devices</a> during the war. But Moscow is supposed to be at a higher level as a major power.<div type="image" title="A screen grab captured from a video shows Russian forces launching rockets toward Ukrainian positions in the Donetsk region on March 29." height="2160" width="3840" msid="112066291" hostid="261" sizebytes="178442"></div>With both sides using enemy phones to aid in their targeting, US Army officers have been <a target="_blank" class="" href="https://www.businessinsider.com/cellphones-can-get-you-killed-modern-battlefield-army-officer-2024-4">warning American troops</a> of the dangers that these personal devices could bring to the battlefield."It's extremely difficult to get the troops to give up their phones and internet devices because this generation of young people has organized their lives around their phones and the connections that the phones can bring," Cancian said."The United States military will face these same challenges in its next conflict," he added.

Russian soldiers are relying heavily on their personal cellphones to wage war in Ukraine even though it risks getting them killed

<ul class="summary-list"><li>Childfree workers told Business Insider they often feel pressured to cover for parents at work.</li><li>But they don't blame parents, who they say are also stretched thin.</li></ul>Kira Benson used to feel the pressure to pick up extra shifts at a former barista job when coworkers needed the time off for parenting duties.With a shortage of workers at the shop, Benson said their coworkers often expected childfree staff members to be more flexible and work more hours when needed. They said on multiple occasions, coworkers' kids would get dropped off and hang out at the shop while their parents worked."The reason childfree people are upset about getting dumped on with this responsibility is largely the company's fault, because they have not provided enough staff to adequately do the amount of work," Benson, a 25-year-old based in Seattle, said. "So everyone is constantly running on the ragged edge, so when you're asked to do a favor, you don't want to do the favor — because you're already tired."Benson's not alone in experiencing the tension of splitting work between childfree workers and those with kids. The great childfree-versus-parents battle isn't really between those two groups, experts say, but instead comes from a new post-pandemic <a target="_blank" href="https://www.businessinsider.com/baby-boomer-retirement-surge-spark-forever-labor-shortage-jobs-workers-2023-5">labor shortage</a> norm at many companies. In a race for increasing profits, firms are trying to keep labor costs low, cutting back on the kind of benefits that make balancing work with parenthood tenable. It's also an issue of public policy. As <a target="_blank" href="https://www.businessinsider.com/millennial-gen-z-parents-struggle-lonely-childcare-costs-money-friends-2023-11">childcare costs rise</a>, and parents aren't <a target="_blank" href="https://www.businessinsider.com/paid-parental-leave-free-preschool-bidens-budget-childcare-2023-3">guaranteed paid leave</a>, they have to contort themselves between work and home — and their childfree coworkers are sometimes forced to pick up the slack.It's a thorny topic, and one <a target="_blank" href="https://www.tiktok.com/@glassdoor/video/7293198136401612078?_r=1&amp;_t=8gmsM9r8sag">where workers</a> on both sides of the equation end up feeling squeezed. For childfree workers, it may lead to resentment, or feeling like their time isn't as valuable. For workers with children, it may mean guilt or embarrassment. They might also face discipline for missing work, or be forced to log back on to work hours after school pick up to catch up."I haven't heard of many options where parents are being accommodated or given more resources in order to successfully parent and be a quote unquote good employee," Amanda Pericles, a 31-year-old speech language pathologist and mother of one, said.It's a problem that stands to only get worse, as <a target="_blank" href="https://www.businessinsider.com/providers-struggle-to-keep-funding-rising-childcare-costs-2023-9">childcare funding dries up</a> and more parents are left scrambling to find care, or to drop out of the workforce completely. At the same time, <a target="_blank" href="https://www.businessinsider.com/return-to-office-mandates-employees-managers-fight-messy-remote-work-2023-11">return to office</a> mandates might <a target="_blank" href="https://www.businessinsider.com/mandatory-on-site-work-hurts-working-moms-leave-in-past-2020-6">threaten</a> the delicate balance some parents have struck to carve out some flexibility. And that might, in turn, lead to childfree workers being asked to take on more.But the childfree workers, parents, and experts that Business Insider spoke with say that making it a worker-to-worker dispute takes the onus off of companies and policy. Instead, they say, it's a systemic failure. And it may be part of a system that firms use to hold leverage and power in the labor market."What I can say is capitalism has won this round," JessieMay Reed, a single mother of two who works in education, told Insider. "It has put two groups against each other to cover up their dirty deeds."<h2>'Greedy jobs' pressure childfree workers and parents to duke it out over work responsibilities</h2>Benson, who now works in social-media management, said that as a disabled person, they've felt deprioritized in the workplace compared to parents, who are granted flexibility for things like picking up their kids. Benson said that time off to manage their chronic illness wasn't as prioritized. Indeed, while disability discrimination is <a target="_blank" href="https://www.eeoc.gov/disability-discrimination-and-employment-decisions">illegal</a> in the US, it seems to remain rampant: Bloomberg Law <a target="_blank" href="https://news.bloomberglaw.com/daily-labor-report/thousands-of-covid-related-eeoc-charges-allege-disability-bias">reported</a> that 66% of the cases the Equal Employment Opportunity Commission received during the pandemic were disability related."We need more support for parents and we need more support for disabled people, but it is highly frustrating when it feels like parents are put on a higher pedestal of getting the right to that time off," Benson said. "And as a disabled person, I'm seen like a burden or an inconvenience."Benson doesn't begrudge parents, but notes that time off for parenting is more of a social norm than other needs. Still, they said they understand parents are stretched, too. The current system of <a target="_blank" href="https://www.businessinsider.com/workers-labor-shortage-understaffing-hiring-2021-10">rampant understaffing</a>, <a target="_blank" href="https://www.businessinsider.com/should-i-take-sick-day-working-from-home-pto-burnout-2022-10">little time off</a>, and <a target="_blank" href="https://www.businessinsider.com/millennial-gen-z-parents-struggle-lonely-childcare-costs-money-friends-2023-11">unaffordable childcare</a> isn't designed for families where two parents have to work long hours to keep up with an increased cost of living.That's due in part to what Arindrajit Dube, an economics professor at University of Massachusetts Amherst calls "greedy jobs, " a term conceptualized by <a target="_blank" href="https://www.businessinsider.com/women-pay-gap-motherhood-fatherhood-nobel-prize-harvard-economist-2023-10">Nobel prize-winning economist Claudia Goldin</a>."Greedy jobs are ones which demand more hours, and are less flexible, because they count on being able to demand workers to abide by those work requirements," Dube wrote in an email to Business Insider. That might particularly fall on parents of younger children, and spillover onto their childfree workers who have to be yanked in to cover that work."If the work process is designed to be less 'greedy' it more easily accommodates passing on tasks across workers, and it's a lot less high stakes an event when someone has to take time off to take care of a family member," Dube said.Some examples of ways firms exercise power are through making workers sign <a target="_blank" href="https://www.businessinsider.com/ftc-wants-ban-noncompete-agreements-workers-make-300-billion-more-2023-1">strict noncompetes</a> so they can't easily move to a different company, or making full-time roles into contract roles to avoid paying certain benefits.Evi Nardi, a 35-year-old content creator who focuses on normalizing being childfree, said that her DMs overflow with messages from hundreds of people — especially those in the service industry — recounting times that they've been told to take Christmas or New Year's shifts, because they don't have children to spend those holidays with.Indeed, erratic shift scheduling has <a target="_blank" href="https://www.washingtonpost.com/business/2023/02/03/worker-shortage-restaurants-hotels-economy/">led some service workers to forsake the industry altogether</a>. Some states are <a target="_blank" href="https://www.denver7.com/news/politics/proposed-bill-would-require-restaurants-certain-industries-to-release-employee-schedules-two-weeks-in-advance">moving towards</a> — or have <a target="_blank" href="https://www.legislature.mi.gov/documents/2021-2022/billintroduced/House/htm/2021-HIB-5136.htm">already enacted</a> — legislation that would ensure workers have more predictable scheduling. Anecdotally, some workers <a target="_blank" href="https://www.askamanager.org/2018/11/parents-in-my-office-are-sticking-non-parents-with-all-the-holiday-coverage.html">have said</a> they've been asked to take on holiday work so parents can have time off, or <a target="_blank" href="https://www.theguardian.com/money/2005/jul/22/discriminationatwork.workandcareers">feel they have to work around them</a>.Chalk some of that up to the mechanisms that firms use to retain power in the labor market, and keep wages lower than they would be in a perfectly competitive world. It's called "monopsony power," and the Treasury Department <a target="_blank" href="https://www.businessinsider.com/companies-pay-workers-less-than-worth-biden-wants-to-change-2022-3">found</a> in a 2022 report that wages were 15% to 20% less than they would be in a perfectly competitive market because of it.Nardi said that she "can't even imagine how difficult it is" to balance work with a child, since "sometimes even just handling work alone and taking care of yourself is a lot." But while things come up for everyone, she said that she thinks parents sometimes get more consideration and flexibility for child-related issues, rather than when a childfree worker needs a personal day.On the other side, though, is parents dealing with a country that does not have federal paid leave or guaranteed sick leave. For Pericles, that means that she doesn't necessarily get to use PTO for vacation, or a break: Instead, she's using it to coordinate childcare and deal with issues as they arise."It's been kind of difficult navigating, especially as things get more expensive and cost of living and cost of daycare, it just gets more expensive as the years go on," Pericles, the millennial mother and speech pathologist, said.Pericles isn't alone: Slate <a target="_blank" href="https://slate.com/human-interest/2022/02/working-kids-pandemic-stress-mothers-struggling.html">reported</a> that, anecdotally, many working parents said they were burning through PTO on childcare issues. Bureau of Labor Statistics <a target="_blank" href="https://www.bls.gov/charts/employee-benefits/paid-leave-sick-vacation-days-by-service-requirement.htm">data</a> shows that workers in private industry have, on average, about seven sick days per year, even after working somewhere for 10 years. And while 79% of workers in private industry <a target="_blank" href="https://www.bls.gov/opub/ted/2022/79-percent-of-private-industry-workers-had-access-to-paid-vacation-in-2021.htm">have access to paid vacation</a>, which ranged from 11 days after one year of service to 20 days after two decades, just 43% of those in service industries — leisure and hospitality — received PTO, as many of those hourly roles don't come with benefits and aren't full time.For Reed, the mother of two, a career in retail was rendered untenable. She would often be late to her shift because of childcare constraints, a no-go in hourly work. She said that in order to be the "best worker," all she needs is a tenable starting time, and accessible, affordable childcare. Today, she's working in education. It's not that much money, but it means she's able to pick up her kids and be off on days where their childcare facilities are closed.<h2>Why companies don't just hire more people to cover shifts</h2>One question that came up amongst both parents and childfree workers is why — instead of foisting more work onto others or making workers scramble to find coverage — firms can't just hire more people instead."Understaffing is one of the ways that corporations and businesses exercise their power over workers," Kitty Richards, acting executive director of the Groundwork Collaborative, told Business Insider.Over the past 20 or 30 years, workers have been getting "short-changed" by their employers to pad bottom lines in every way possible, Richards said. That includes firms cutting labor costs — which can include cutting benefits, and ensuring that there's any slack in staffing schedules, "and then making it the problem of the employees to figure out how they're going to cover shifts.""It really is just another way of employers cutting their costs and pushing the consequences of that onto their workers," Richards said.Betsy Cardenas has been on both sides of the equation. She's experienced life working as a childfree professional amongst coworkers with children, and then navigating the workforce with a young child. She's seen a shift in workers' willingness to push back on the work heaped on them."I think before there was more of a philosophy of like, well, I need to pay my dues just like so-and-so did, and I think now people are more willing to make demands of their employers and quit if things aren't going the right way," said Cardenas, who runs a creative studio.If workers slowly push back against monopsony — through demanding higher wages, and more flexibility, and unionizing for more legal protections and benefits — they could start to see more accommodations like onsite childcare, or more fully staffed workforces. And it can also come down to better public policy, like affordable childcare and parental leave."We all need to band together and realize that these are class struggles we're experiencing, these are worker-versus-employer struggles we're experiencing — we're not experiencing a parent versus nonparent," Cardenas said, adding: "I think we need to zoom out and see how are the larger systemic issues making us all — parents and non-parents — feel like we have to compete for jobs, and we have to compete for wages while corporations are having record billion dollar profits every year."

The forever labor shortage is pitting parents and their childfree coworkers against each other

<ul class="summary-list"><li>The chip shortage has ailed the auto industry since early in COVID, but a bigger issue is surfacing.</li><li>Automakers are starting to see the impacts of the electric vehicle battery crunch.</li></ul>It's official: <a href="https://www.businessinsider.com/startups-racing-to-supply-360-billion-electric-vehicle-battery-market-2022-4">The battery crunch</a> is the new chip shortage.The <a href="https://www.businessinsider.com/car-buying-tips-inventory-dealerships-chip-shortage-impact-vehicle-prices-2023-1">chip shortage is still impacting vehicle supply</a>, experts say, but automakers are now having to reckon with the battery supply chains as an even bigger headwind. Challenges surrounding electric vehicle production and the battery supply chain are finally materializing for legacy automakers and impacting their bottom lines.Ford, GM, and Porsche pointed to delays, constraints, and expenses related to EVs and their batteries in recent financial results. These issues are not only causing them to fall short of their ambitious electrification targets but also impacting their balance sheets. <a href="https://www.businessinsider.com/ford-ev-production-slow-thanks-to-tesla-price-war-2023-7">Ford CEO Jim Farley said during the company's last earnings call</a> that with regard to EVs, "pricing pressure has dramatically increased in the past 60 days." Much of that stems from an <a href="https://www.businessinsider.com/tesla-ev-price-war-creating-headache-entire-auto-industry-2023-4">EV price war brought on by Tesla and Elon Musk</a>. One of the biggest reasons it's more difficult for a company like Ford to lower its EVs prices is because it hasn't yet hit production scale in the same way Tesla has, especially when it comes to batteries, which would bring down overall costs. Ford expects to lose $4.5 billion on EVs this year.Meanwhile, GM CEO Mary Barra told investors that while the company is targeting building 100,000 EVs in the second half of 2023, one of its equipment suppliers is experiencing delivery issues that is constraining GM's battery module assembly."We have experienced unexpected delays in the ramp," Barra said — an indicator that bottlenecks are to come from the <a href="https://www.nytimes.com/2023/07/25/business/general-motors-electric-vehicles-profits.html">battery side of the business</a>. Battery shortages were blamed for <a href="https://electrek.co/2023/07/17/gm-battery-production-woes-worsen-cami-ev-plant-shuts-down/">GM halting production at a Canadian manufacturing plant</a> earlier this month, according to Electrek. And at Porsche, hitting this year's target will require a better battery situation, executives said."There is no week where we have no supply chain issue," CEO Oliver Blume told media, per a <a href="https://www.reuters.com/business/autos-transportation/porsche-confirms-forecast-107-higher-operating-profit-h1-2023-07-26/#:~:text=%22There%20is%20no%20week%20where,down%201.5%25%20at%200815%20GMT.">Reuters report</a>. <a href="https://www.businessinsider.com/china-crushing-us-america-battle-energy-evs-batteries-tech-war-2023-5">Battery supply issues</a> have long been looming, but as <a href="https://www.businessinsider.com/auto-companies-copy-tesla-succeed-electric-vehicles-batteries-2022-12">auto companies across the globe race to snatch up EV market share</a> and spend billions to electrify, the <a href="https://www.businessinsider.com/electric-vehicle-revolution-hits-delays-production-sales-tesla-china-2023-4">challenges have manifested quickly</a>. Before, it wasn't as obvious just exactly where hold-ups would come into play. Now, combined with sourcing requirements like those in the Inflation Reduction Act, and a mash dash for <a href="https://www.businessinsider.com/electric-vehicle-battery-execs-poised-to-win-the-booming-business-2022-9">raw materials, processing power, and manufacturing capability</a> has <a href="https://www.wsj.com/articles/big-automakers-grab-1-billion-deal-for-urgently-needed-battery-metals-edb0c998">automakers scrambling</a>. Competition is fierce, and while <a href="https://apnews.com/article/china-ev-lithium-united-states-battery-87eb9382a0181bb7ee64e835efe7b170">auto companies are making agreements and signing onto partnerships</a> to reduce the blow from the supply chain, the road to EVs is likely to remain rocky.

It's official: The battery crunch is the new chip shortage

<ul class="summary-list"><li>The western US is withering under its worst <a href="https://www.businessinsider.com/historically-low-california-reservoirs-threaten-power-grid-photos-2021-6">drought</a> in at least 20 years - <a href="https://www.insider.com/the-west-coast-could-see-worst-drought-in-1200-years-2021-6">possibly in 1,200 years</a>.</li><li>An early <keyword id="55544" type="PERSON" weightage="60" keywordseo="heat-wave">heat wave</keyword> <a href="https://www.businessinsider.com/us-power-grids-are-straining-as-sweltering-heatwaves-persist-2021-6">strained California power grids</a> and brought <a href="https://www.businessinsider.com/photos-show-how-people-are-handling-extreme-heat-in-west-2021-6">record temperatures</a> across the West.</li><li>Extreme heat and dryness could cause devastating <keyword id="394841" type="PERSON" weightage="60" keywordseo="wildfires">wildfires</keyword>, rolling <a href="https://www.businessinsider.com/california-narrowly-avoided-power-blackout-from-heatwave-2021-6">blackouts</a>, and <a href="https://www.businessinsider.com/take-a-look-at-lakes-that-dried-up-california-drought-2021-6">water shortages</a>.</li></ul>The western US was already withering in severe <keyword id="46472" type="PERSON" weightage="60" keywordseo="drought">drought</keyword> when a heat wave struck last week. Temperatures reached 116 degrees Fahrenheit in Las Vegas, 115 in Phoenix, and over 110 for eight days straight in Tucson. Daily highs shattered hundreds of records across the West, and <keyword id="2379" type="CITY" weightage="60" keywordseo="California">California</keyword> Gov. Gavin Newsom <a href="https://www.gov.ca.gov/2021/06/17/amid-extreme-heat-wave-stressing-energy-grids-across-western-u-s-governor-newsom-acts-to-increase-energy-capacity/">declared a statewide emergency</a>, saying the heat wave put "significant demand and strain on California's energy grid."The hottest months lie ahead, so this early extreme weather could foreshadow another devastating fire season. Last year's fires burned a record 4 million acres in California, 1.07 million in Oregon, and at least 713,000 in Washington.Current drought conditions across the West and Southwest are more widespread and severe than they've ever been in the 20 years the US Drought Monitor has been mapping them.<div type="image" title="Map of droughts in US from June 2021" height="2550" width="3300" msid="83778555" hostid="261"></div>Compare that to June of last year, mapped below.<div type="image" title="Drought map of the US from 2020" height="1237" width="1600" msid="83778559" hostid="261"></div>"I'm worried about this summer," Kathleen Johnson, a paleoclimatologist at the University of California, Irvine, told <a href="https://www.theguardian.com/us-news/2021/jun/18/us-heatwave-west-climate-crisis-drought">The Guardian</a>. "This current drought is potentially on track to become the worst that we've seen in at least 1,200 years. And the reason is linked directly to human-caused climate change."Scientists can't attribute an individual drought or heat wave directly to climate change. But rising global temperatures are changing the western US profoundly: Warmer air causes more moisture to evaporate, which leads soil to dry out. That raises the risk of drought and leaves forests full of tinder-dry foliage, primed for wildfires.Heat waves occur three times more often and last about a day longer than they did in the 1960s, according to <a href="https://www.epa.gov/climate-indicators/climate-change-indicators-heat-waves">records</a> of such waves across 50 US cities. They also start earlier and continue later into the year - the heat-wave season is 47 days longer than it was in the 1960s.<div type="image" title="The drought turned the San Gabriel reservoir lake bed to dust" height="2656" width="3542" msid="83778562" hostid="261"></div>"Much of the western United States will continue the trend of hot and dry weather, much like the summer of 2020," Brandon Buckingham, a meteorologist at AccuWeather, told Insider. "Each and every western heat wave throughout the summer will only heighten wildfire risks."Meteorologists <a href="https://www.sfchronicle.com/local/article/Bay-Area-feels-relief-from-record-breaking-heat-16261004.php">expect</a> yet another heat wave, mostly over Northern California, next week.<h2>Summer may bring <keyword id="4330279" type="PERSON" weightage="60" keywordseo="blackouts">blackouts</keyword>, water shortages, and wildfires</h2><div type="image" title="california wildfire lnu complex fire.JPG" height="1000" width="1333" msid="83778565" hostid="261"></div>Hundreds of thousands of Californians already face water-use restrictions in the Bay Area, since reservoirs are dwindling and there's almost no snowpack to replenish them. Gov. Newsom has declared drought emergencies in 41 of the state's 58 counties, encompassing 30% of California's population.Lake Mead - the largest reservoir in the US, which provides water to 25 million people across Arizona, Nevada, California, and Mexico - is at its lowest level since it was filled in the 1930s.California's second-largest reservoir, Lake Oroville, has fallen to "alarming levels," a California Energy Commission spokesperson told <a href="https://www.cnn.com/2021/06/17/us/california-drought-oroville-power/index.html">CNN</a> on Thursday. Normally, the lake's water pumps through the Edward Hyatt Power Plant to generate electricity for 800,000 homes. But the reservoir is currently at just <a href="https://cdec.water.ca.gov/cgi-progs/products/rescond.pdf">35%</a> capacity - less than half the historical average.<div type="image" title="heat map of US heat wave shows record temperatures above 110 degrees across southwest" height="1172" width="1624" msid="83778569" hostid="261"></div>When heat waves roll in, even more water evaporates. At the same time, people crank up air conditioners, causing energy demand to spike. This can strain the <keyword id="6368906" type="COMPANY" weightage="60" keywordseo="power-grid">power grid</keyword> and lead to rolling blackouts. It happened last year: When a heat wave hit in August, hundreds of thousands of residents lost power in increments of up to 2.5 hours. Those were California's first rolling blackouts in 19 years.That's different from PG&amp;E's safety shutoffs, though, which are meant to <a href="https://www.businessinsider.com/pge-caused-california-wildfires-safety-measures-2019-10">prevent aging power lines from starting wildfires</a> and can last for days. PG&amp;E has warned that such shutoffs could be more frequent this year than in 2020, according to the <a href="https://www.wsj.com/articles/pg-e-warns-of-more-blackouts-during-californias-wildfire-season-11623414658">Wall Street Journal</a>.<div type="image" title="lake mead's low waters expose pale cliffs behind the hoover dam" height="1527" width="2037" msid="83778572" hostid="261"></div>With no end to the drought in sight, officials expect they'll be forced to close Edward Hyatt Power Plant plant in two or three months, CNN reported.That's the time of year when wildfires typically peak. But already this year, blazes have forced evacuations in California's Monterey and Shasta counties. Smoke from fires in Arizona and Utah has billowed over Colorado.<div type="image" title="wildfire smoke plumes over dry hills and a highway road" height="1512" width="2016" msid="83778576" hostid="261"></div>An active monsoon season in July and August may chip away at the drought in the Southwest, Buckingham said, but <keyword id="44875" type="PERSON" weightage="60" keywordseo="West-coast">West Coast</keyword> states will probably see no such relief."The fires we saw in the last couple of years were really awful, and this year it seems like we're on that same trajectory," Daniel Swain, a climate scientist at the University of California, Los Angeles, told The Guardian. "It kind of feels like deja vu."Grace Kay contributed reporting.

Drought maps show the western US at its driest in 20 years - a ticking time bomb for even more fires and power failures

Ever since the pandemic, American companies big and small have been scrambling to find enough workers to stay fully staffed. They've been forced to offer big salaries and generous perks, while employees were free to shop around for better offers or simply walk off the job to join the Great Resignation. But now, layoffs are up and job openings are down. The economy is slowing, and the Federal Reserve is hiking interest rates at the fastest pace in decades. By any objective measure, the balance of power in the job market should be tipping back to employers.Strangely, though, it isn't. Ask pretty much anyone who's hiring these days, and they'll tell you something curious: It remains incredibly hard to find and hire enough qualified people for the roles they're desperately trying to fill. Somehow, workers still hold the power — and a massive shift that's underway in the labor market could keep it that way forever.The shift boils down to demographics. Ever since the baby boom that followed World War II, companies have enjoyed a never-ending supply of workers to tap. Hate your job? Fine — we'll just replace you with one of the hundred others who would be happy to fill your shoes. The abundance of workers made them cheap — and disposable.But now, those baby boomers are retiring in droves, and companies are suddenly finding themselves without an endless reserve of available bodies. "The labor shortage we're dealing with today is likely to remain this way — and perhaps get even worse," says Jay Denton, the chief analytics officer at LaborIQ, which provides salary analysis to employers. "It's going to continue to be really hard to attract people and get them into new jobs." We're entering what is shaping up to be the Forever Labor Shortage.It may seem like ancient history today, but the baby boom that followed the Second World War spurred a massive shift in the US labor market. As the boomers came of age, the economy was suddenly flush with millions of new workers looking for jobs. The <a href="https://databank.worldbank.org/source/population-estimates-and-projections#" target="_blank" rel="noopener">working-age population</a> jumped by 17% in the 1960s and by another 19% in the following decade. If you were looking to hire, times were good.But the boomers, unlike their parents, didn't have many babies themselves. The pill and the legalization of abortion sent fertility rates cratering — from 3.7 babies per woman in 1960 to 1.8 babies a decade and a half later. For a few decades, an influx of women and immigrants into the workforce kept the labor pool expanding. But by 2000, the rising supply of female workers reached its peak. And after Donald Trump took office, immigration took a nosedive. That meant there were no new workers left to hire, just as the first of the baby boomers were starting to retire.Then COVID-19 put the labor shortage into hyperdrive. Immigration came to a standstill, the boomer retirement wave began in earnest, and millions of younger boomers decided to tap into the stock boom and retire early. "All these tailwinds were pushing in the same direction, and suddenly they were all stopping at the same time," says Aaron Terrazas, the chief economist at the job-search site Glassdoor. "The slow-moving demographic tidal wave is finally cresting."In April, the unemployment rate declined to its lowest level since 1969 — meaning there are few available workers left to hire. Despite all the talk of how "no one wants to work anymore," there's actually a higher share of 25- to 54-year-olds with a job today than before the pandemic. And the shortage is just getting started. The Congressional Budget Office projects the potential labor force to expand by a mere 3.6% between 2022 and 2031 — one-eighth of the pace in the 1970s. Over the following decade, that growth is projected to slow even more, to 2.9%. That means employers face decades of an essentially stagnant labor pool.So what does the Forever Labor Shortage mean for workers in the years ahead? The bottom line is there will be an all-out competition for their services. For starters, they can expect higher salaries: In April, average hourly earnings jumped 4.4% from a year earlier. Denton, the labor analyst, expects wages to continue rising above the 2% annual bumps we saw in the decade before the pandemic struck.To attract enough workers, employers will also be forced to provide better benefits and working conditions. Terrazas points to the "big mindset shift" taking place in the trucking industry. To attract more drivers, some companies have started to break up their long-haul routes, allowing drivers to do shorter runs instead of forcing them to endure grueling, cross-country shifts. "When labor supply is plentiful, it's easier to do the business practices that are optimal for the business," Terrazas says. "But when labor is scarce, companies need to be more active in listening to what their employees want."Another effect of the labor shortage: In the years ahead, younger workers can expect to receive faster promotions as older bosses retire. Last year, by one estimate, 29% of managers — and 40% of CEOs — were 55 or older. As those old-timers begin to collect their gold watches and head for Florida, a generation of younger workers is going to find themselves elevated at a rapid clip. "There's going to be a lot of opportunity for career progression," Denton says.But perhaps the biggest change prompted by the labor shortage won't be how employers hire — it will be who they hire. Facing a constrained supply of workers, companies will be forced to employ those they have long shunned or ignored. The federal government is relaxing <a href="https://www.nytimes.com/2023/04/30/us/marijuana-drugs-federal-jobs.html" target="_blank" rel="noopener">drug-testing requirements</a> for job candidates, and more businesses are hiring people with criminal records. Companies are also making jobs more flexible, to attract mothers with young children and people with disabilities. In the Forever Labor Shortage, all labor is going to be in demand.But here's the thing about this new age of labor scarcity: Employers aren't going to take it lying down. The labor shortage makes workers more expensive, and that's not a price companies are willing to pay. "High prices spark innovations that expand supply and ultimately lower prices," Terrazas says. "Some of these innovations will be small, and some of them will be really big." So what kind of "innovations" will employers introduce? Some will turn to a tried-and-true tactic: offshoring. If businesses can't find enough workers at home, they'll just look overseas. Denton expects a lot of companies to say, "Hey, we just don't have the people to do what we need to do here, and we're going to find it where we can." As I wrote last year, tech companies are already <a href="https://www.businessinsider.com/great-resignation-tech-companies-offshoring-engineering-jobs-globalization-remote-2022-6">moving their software-engineering roles abroad</a>, hiring coders in places like Latin America. Other companies will attempt to eliminate the need for workers altogether. Take leisure and hospitality, a sector that no longer enjoys access to a steady stream of young, low-wage workers. Restaurants have started replacing servers with app-based ordering systems, and hotels have reduced the need for housekeeping staff by doing away with daily room cleanings. Those are changes businesses could easily have made in the past — mobile apps, for example, have been around for more than a decade — but they didn't think them worth the investment until an acute staffing shortage forced them to rethink the way they operated. Now the question is: At what point do these adaptations-by-necessity end up eradicating entire occupations for the next generation?That means the Forever Labor Shortage will be more an ongoing battle than an enduring peace. Power never changes hands without a struggle. Millions of workers are going to benefit from the new demographic shift — but the greater the reward to employees, the greater the backlash from employers will be. "There's a risk to this idea that the labor supply is perpetually going to be tight moving forward," Terrazas says. "It's a mistake to assume the line is always going to be upward to the right. There are going to be blips — potentially big blips — along that path."<a href="https://www.businessinsider.com/author/aki-ito">Aki Ito</a> is a senior correspondent at Insider.

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