WEBVTT - Hot Jobs Report Raises Odds Fed Keeps Rates Higher 0:00:01.320 --> 0:00:05.720 This is Bloomberg Business Wait Inside from the reporters and 0:00:05.880 --> 0:00:09.440 editors who bring you America's most trusted business magazine, plus 0:00:09.520 --> 0:00:13.640 global business, finance and tech news the Bloomberg Business Week 0:00:13.680 --> 0:00:18.840 Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio. 0:00:20.079 --> 0:00:23.200 Well, as we mentioned earlier, the US job market remains resilient, 0:00:23.239 --> 0:00:25.840 to say the least. Job growth in April broad based, 0:00:25.920 --> 0:00:28.760 reflecting gains and healthcare, professional and business services, as well 0:00:28.760 --> 0:00:31.360 as leisure and hospitality. We're going to talk a little 0:00:31.400 --> 0:00:34.199 bit more about leisure and hospitality later on with the 0:00:34.240 --> 0:00:37.520 CEO of Trevago. Keep in mind, though the two prior 0:00:37.600 --> 0:00:40.680 months apparels were revised lower by a combined one hundred 0:00:40.680 --> 0:00:43.680 and forty nine thousand, so important to factor that in 0:00:43.840 --> 0:00:44.400 as well. 0:00:44.600 --> 0:00:44.760 Well. 0:00:44.800 --> 0:00:46.280 Back with this on what she is seeing in terms 0:00:46.280 --> 0:00:49.680 of employment needs is Becky Frankowitz. She's Chief Commercial Officer, 0:00:49.760 --> 0:00:52.599 President of North America at Manpower Group. She joins us 0:00:52.880 --> 0:00:55.560 via Zoom from Milwaukee. Becky, good to have you back 0:00:55.560 --> 0:00:58.280 with us. Tell us we got another strong jobs report. 0:00:58.280 --> 0:01:00.680 We saw some revisions the prior to What are you 0:01:00.760 --> 0:01:04.000 seeing specifically, what words would you describe or use to 0:01:04.040 --> 0:01:06.640 describe the current labor market and how it compares to 0:01:06.680 --> 0:01:08.160 maybe the last few months. 0:01:08.720 --> 0:01:11.120 Yeah, so I would say, you know, better than expected 0:01:11.200 --> 0:01:14.839 job numbers. I like to do the analogy. It shows 0:01:14.840 --> 0:01:18.080 the promise of spring. You know, very low unemployment three 0:01:18.080 --> 0:01:20.720 point four percent CAROL, matching the all time low of 0:01:20.800 --> 0:01:24.360 nineteen sixty nine, so very tight labor market. Two hundred 0:01:24.400 --> 0:01:27.680 and fifty three thousand jobs created. Not so, you know, 0:01:27.720 --> 0:01:30.160 there's some clouds on the horizon. We're not seeing labor 0:01:30.160 --> 0:01:32.559 force participation come back at the rate that we want. 0:01:32.920 --> 0:01:35.120 You mentioned the revisions are now material. One hundred and 0:01:35.120 --> 0:01:37.400 forty nine thousand is material, and I would say that 0:01:37.440 --> 0:01:39.280 the third kind of storm cloud we want to keep 0:01:39.280 --> 0:01:42.520 our eye on is temporary staffing is now in decline, 0:01:42.560 --> 0:01:44.880 which you know is often referred to as the canary 0:01:44.880 --> 0:01:46.600 in the coal mine in terms of going into an 0:01:46.600 --> 0:01:51.680 economic slowdown. So I think very good overall numbers. Another positive, 0:01:51.720 --> 0:01:53.720 by the way, is reabsorption, and so as people are 0:01:53.800 --> 0:01:56.680 laid off, their being reabsorbed very quickly, as we saw 0:01:56.760 --> 0:01:59.800 continue to unemployment claims tick down. So there's lots of 0:02:00.440 --> 0:02:02.080 in a few storms on the horizon we want to 0:02:02.160 --> 0:02:02.680 keep our eye on. 0:02:03.000 --> 0:02:06.120 Becky I'm curious to hear about what industries are seeing 0:02:06.160 --> 0:02:08.360 some strength when it comes to job growth, whereas other 0:02:08.400 --> 0:02:09.959 industries that are struggling right now. 0:02:10.800 --> 0:02:15.080 Yeah, so medical IT and sales are making up forty 0:02:15.280 --> 0:02:17.919 four percent of all the open jobs in our country 0:02:17.960 --> 0:02:21.600 right now, Medical IT and sales, So lots of strength there. 0:02:21.639 --> 0:02:24.080 And again this is we know the job's numbers are 0:02:24.080 --> 0:02:26.760 looking backward. I'm giving you real time data today in 0:02:26.800 --> 0:02:29.720 the country. We're also seeing strength and you mentioned it 0:02:29.760 --> 0:02:33.520 in your opening in hospitality and leisure. Retail starting to 0:02:33.560 --> 0:02:35.920 come back in a very interesting fact. So you know, 0:02:35.960 --> 0:02:38.640 the probably the last two years we've talked about the 0:02:38.760 --> 0:02:42.560 three most in demand roles in our country have been 0:02:42.600 --> 0:02:47.000 registered nurses, software developers and logistics or truck drivers. It's 0:02:47.040 --> 0:02:49.480 been the same for at least two years. We've seen, 0:02:49.560 --> 0:02:52.960 for the first time in two years, truck drivers drop down. 0:02:53.160 --> 0:02:56.280 They're not in the top five or ten, and surprisingly 0:02:56.360 --> 0:02:59.440 in the number three position now after registered nurses and 0:02:59.560 --> 0:03:04.920 software developers is stock clerks definitely indicating the return to retail, 0:03:05.080 --> 0:03:09.760 So nurses, software and now for stock stock clerks, so 0:03:09.840 --> 0:03:12.680 that clerk, So that plays into the retail sector specifically. 0:03:12.960 --> 0:03:16.440 Absolutely, what does that tell you that's an interesting switch 0:03:16.520 --> 0:03:18.840 because I would kind of say that you need logistics 0:03:18.840 --> 0:03:21.880 and supply to bring the stuff to the stores so 0:03:21.919 --> 0:03:23.720 that the stock clerks can do something with it. 0:03:24.280 --> 0:03:26.359 Yes, well, it's still but it would think about the way. 0:03:26.680 --> 0:03:28.919 What it indicates is the way we're shopping has changed. 0:03:29.000 --> 0:03:31.520 Logistics is still you know, in the top twenty in 0:03:31.600 --> 0:03:33.880 terms of jobs in demand, but it's the first time 0:03:33.919 --> 0:03:35.800 I've seen it fall out of the top three. And 0:03:35.880 --> 0:03:38.440 it tells you that the way we are shopping has changed. 0:03:38.800 --> 0:03:41.640 So you know, we're going back in physical retail, still 0:03:41.680 --> 0:03:45.120 shopping online, but back in physical retail. And it tells 0:03:45.120 --> 0:03:48.840 you that, you know, people are traveling more and so 0:03:49.040 --> 0:03:51.440 going and stocking up before they head out for spring 0:03:51.440 --> 0:03:54.240 break or head out for summer travel with retail expenditure 0:03:54.240 --> 0:03:56.960 and so it's the other interesting fact is if you 0:03:56.960 --> 0:03:59.720 think about who's hiring, what companies are hiring. You know, 0:04:00.120 --> 0:04:03.440 Clips the hair company shipped, so you know a little 0:04:03.480 --> 0:04:05.880 counter they're now back on the hiring and then back 0:04:05.920 --> 0:04:08.480 in the top five and they had dropped out. Surprisingly 0:04:08.840 --> 0:04:11.680 Amazon top three companies hiring in the country today. 0:04:11.840 --> 0:04:15.280 Oh wow, I'm curious to hear more about what you're 0:04:15.320 --> 0:04:17.360 seeing on the wage front, because we did. When you're 0:04:17.360 --> 0:04:19.760 looking at these month over month numbers in this latest report, 0:04:19.839 --> 0:04:23.120 it rose about five tenths of a percent. Animals, we're 0:04:23.120 --> 0:04:25.080 thinking you'd be round three tens of a percent. Obviously, 0:04:25.120 --> 0:04:26.800 wages have been such a big thing that we know 0:04:26.839 --> 0:04:28.920 the Federal Reserve is watching. What do you see there? 0:04:29.800 --> 0:04:33.640 Yeah, so we have continued to see robust wage growth. 0:04:33.680 --> 0:04:36.200 I would say the rate of increase has slowed, but 0:04:36.279 --> 0:04:38.640 I like to look at it in two parts, and Jess, 0:04:39.000 --> 0:04:40.760 I think that was your question. I love to look 0:04:40.800 --> 0:04:42.880 at it in two parts. What is the wage growth 0:04:42.880 --> 0:04:46.080 for people staying in their job, and that's about five 0:04:46.120 --> 0:04:49.320 point six percent increase year over year if you stay 0:04:49.320 --> 0:04:52.520 in your job, and if you change jobs, it's up 0:04:52.560 --> 0:04:55.440 to a thirteen point two percent increase. So we still 0:04:55.480 --> 0:04:58.159 are in a labor market that's in sinning movement and 0:04:58.200 --> 0:05:02.200 senting people to change jobs. So wage growth continues. The 0:05:02.240 --> 0:05:05.520 pace is a little slower, but the increase divided by 0:05:05.560 --> 0:05:08.760 those who stay in those who move jobs, still very robust. 0:05:08.880 --> 0:05:11.200 That's interesting. So you know, maybe that is what we 0:05:11.240 --> 0:05:13.800 continue to see pop up in a jolt surveys because 0:05:13.800 --> 0:05:17.320 there's still a lot of movement around here. So you know, 0:05:17.400 --> 0:05:20.640 Becky add it all up. Does it say to you 0:05:21.480 --> 0:05:22.359 have recession? 0:05:22.440 --> 0:05:22.680 Folks? 0:05:22.760 --> 0:05:25.640 Are you crazy? Or I continue to I've been kind 0:05:25.640 --> 0:05:27.920 of asking this for a long time. Could we see 0:05:28.000 --> 0:05:31.760 slow down, recession even but with a strong job market. 0:05:32.720 --> 0:05:35.400 I think that's a that's actually a fantastic question. What 0:05:35.560 --> 0:05:38.800 I would say is we do anticipate some cooling. We've 0:05:38.800 --> 0:05:41.279 seen some slow down in demand in a couple of areas. 0:05:41.279 --> 0:05:43.599 I've talked about the top demand, but a little slow 0:05:43.640 --> 0:05:47.359 down in finance and accounting, in research and development in 0:05:47.440 --> 0:05:51.280 terms of demand. So some of the professional manufacturing industrials, 0:05:51.360 --> 0:05:53.359 you know, slowing down a bit in demand. So I 0:05:53.360 --> 0:05:56.120 think we're going to see a cooling. But I think 0:05:56.160 --> 0:05:59.159 we may see a recession or a slow down with 0:05:59.320 --> 0:06:02.520 a strong job market than we've seen historically in those times. 0:06:02.560 --> 0:06:05.039 I'm not sure it will it will have the free 0:06:05.040 --> 0:06:06.280 fall that we're all expecting. 0:06:06.400 --> 0:06:09.599 Are people still labor hoarding? Which has been like a 0:06:09.640 --> 0:06:11.680 new which has been a new phrase that has come 0:06:11.720 --> 0:06:13.840 out of all of this. But this is basically companies, 0:06:13.880 --> 0:06:15.960 because they know it's such a tight labor market, saying 0:06:16.320 --> 0:06:18.200 I'll hold on to these workers because I know things 0:06:18.200 --> 0:06:21.400 are going to turn around, rather than let folks go. 0:06:22.040 --> 0:06:24.720 Well, it's a little bit of an overhang of pandemic paranoia. 0:06:24.800 --> 0:06:24.960 You know. 0:06:25.200 --> 0:06:27.359 I had to let people go that I couldn't find anyone, 0:06:27.720 --> 0:06:29.560 so then I hoarded all the labor and didn't let 0:06:29.560 --> 0:06:32.880 them go. And yes, we are seeing people hold on 0:06:32.920 --> 0:06:35.839 to the talent they have and in addition hire for 0:06:35.960 --> 0:06:38.880 really specific in demand roles. I do want to caution 0:06:39.000 --> 0:06:41.800 all of us though, this tick down and temp hiring 0:06:42.400 --> 0:06:45.839 is traditionally the leading indicator for going into an economic slowdown. 0:06:45.880 --> 0:06:49.520 And yeah, temp powering fall. In fact, it's down, you're 0:06:49.520 --> 0:06:51.719 over year almost one hundred and seventy thousand jobs, and 0:06:51.760 --> 0:06:53.880 so that we all need to keep an eye on that. 0:06:54.160 --> 0:06:57.040 What's a particular threshold when it comes to that metric 0:06:57.080 --> 0:06:58.800 that would be more of a red flag to you. 0:06:59.680 --> 0:07:02.240 Yeah, so I think the decline is the first, you know, 0:07:02.279 --> 0:07:04.520 the month over month decline. We've seen it for several 0:07:04.680 --> 0:07:07.760 several months now, and it's been a little sporadic. Like 0:07:07.800 --> 0:07:09.600 everything else. It'll decline and it goes back up, and 0:07:09.640 --> 0:07:12.360 it declines again. But I'd say we're in the territory 0:07:12.440 --> 0:07:16.360 now where labor hoarding people will hold onto their permanent workers, 0:07:16.640 --> 0:07:20.120 but in fear of recessionary conditions, they won't hire the 0:07:20.160 --> 0:07:23.400 additional flexibility from a temporary workforce. And so I would 0:07:23.400 --> 0:07:27.120 say we see enough of a yellow flag. I will't 0:07:27.120 --> 0:07:29.200 say red flag, a yellow flag now to keep a 0:07:29.320 --> 0:07:30.280 very close eye on it. 0:07:30.640 --> 0:07:33.560 Go back to when you said Amazon now was among 0:07:33.600 --> 0:07:36.000 the top three companies in terms of hiring. They had 0:07:36.080 --> 0:07:38.680 dropped out. That's based on what data. And I'm curious 0:07:38.720 --> 0:07:40.640 how who else is in that top three? 0:07:41.120 --> 0:07:43.280 Yes, so in the number one position is great Clips, 0:07:43.400 --> 0:07:47.000 so the hair haircutter. Then you have shipped the online 0:07:47.040 --> 0:07:49.760 retailer who had been not even on the list, so 0:07:49.800 --> 0:07:51.960 you know they what happened there is they weren't hiring 0:07:52.000 --> 0:07:54.080 at all, and now they have some needs to catch 0:07:54.160 --> 0:07:57.720 up with the summer travel and stocking up. And then 0:07:57.920 --> 0:08:01.800 number three was Amazon. So what's happening there is we're 0:08:01.800 --> 0:08:05.000 starting to see those stocks, you know, a different version 0:08:05.040 --> 0:08:08.000 of stock clerks, but seeing that same retail phenomenon start 0:08:08.040 --> 0:08:09.320 to come back into the economy. 0:08:09.320 --> 0:08:10.360 Where's that data from? 0:08:10.840 --> 0:08:13.640 Oh, yes, I'm sorry to answer that. That's we actually 0:08:13.800 --> 0:08:16.640 scan all of the open jobs in the country. We 0:08:16.760 --> 0:08:18.760 scan them all and we aggregate the data and that's 0:08:18.800 --> 0:08:21.200 the source, so any without duplication, so there is a 0:08:21.240 --> 0:08:22.160 duplication in the data. 0:08:22.880 --> 0:08:26.320 We only have about forty five seconds left, but I 0:08:26.360 --> 0:08:28.680 wanted to follow up because you had mentioned obviously those 0:08:28.720 --> 0:08:32.400 finance jobs where we saw those starting to lose that momentum. 0:08:32.440 --> 0:08:34.720 Is that clearly the obvious reason of what we've been 0:08:34.800 --> 0:08:37.360 seeing the past few months there with those what's been 0:08:37.360 --> 0:08:39.440 happening with the stress and the regional banks. 0:08:39.880 --> 0:08:41.760 Yes, I think they're definitely related. You know, if you 0:08:41.760 --> 0:08:44.240 think about the macro trends that drive changes in the 0:08:44.320 --> 0:08:46.480 labor market, one of course is banking and the other, 0:08:46.920 --> 0:08:50.160 you know, depression of demand we're seeing is anything related 0:08:50.200 --> 0:08:53.720 to inflation, so durable goods starting to be under pressure. 0:08:53.800 --> 0:08:55.319 So it's all tied to the economy. 0:08:55.320 --> 0:08:56.959 That's why we like talking to you man. You give 0:08:57.040 --> 0:09:00.559 us the specific stats, you give us perspective. I am 0:09:00.600 --> 0:09:03.720 like blown away by that Amazon right figure, because it's 0:09:03.760 --> 0:09:05.800 they've certainly been among those, you know, who are cutting 0:09:05.840 --> 0:09:06.920 coming off of the pandemic. 0:09:07.000 --> 0:09:09.600 So retailers in the summer, stalkers as well. 0:09:09.760 --> 0:09:11.960 Stockers did you say, are stokers. 0:09:11.720 --> 0:09:15.720 Stalker's access accent. 0:09:16.960 --> 0:09:18.599 Becky, thank you has always have a great week. And 0:09:18.679 --> 0:09:22.000 Becky Frankowitch. She's Chief Commercial Officer, President of North America 0:09:22.360 --> 0:09:23.120 Manpower Group. 0:09:23.679 --> 0:09:27.200 You're listening to the Bloomberg Business Week Podcast. Catch us 0:09:27.280 --> 0:09:30.559 live weekday afternoons from three to six Eastern Listen on 0:09:30.679 --> 0:09:34.680 Bloomberg dot com, the iHeartRadio app and the Bloomberg Business App, 0:09:35.000 --> 0:09:36.640 or watch us live on YouTube. 0:09:37.720 --> 0:09:39.800 All right, as promised, we want to talk a little 0:09:39.800 --> 0:09:42.720 bit about the travel and use your in hospitality space, 0:09:42.760 --> 0:09:45.560 and we have a great guest with us. We've talked 0:09:45.559 --> 0:09:49.400 a lot about folks traveling again again continuing post pandemic. 0:09:49.920 --> 0:09:53.199 So we'll see what Axel Heefer is seeing firsthand. He's 0:09:53.280 --> 0:09:59.040 CEO at Travago. He joins us on Zoom from Dusseldorf, Germany. 0:09:59.320 --> 0:10:01.960 So nice to have here with us. Axel. First off, 0:10:03.000 --> 0:10:03.439 how are you. 0:10:05.040 --> 0:10:08.560 I'm good. I'm good. Traveler is coming back now even 0:10:08.600 --> 0:10:12.840 in Asia, so yeah, well getting better every day. 0:10:13.040 --> 0:10:14.360 Well, tell us a little bit and we want to 0:10:14.440 --> 0:10:15.880 drill down a little because we've gotten from a lot 0:10:15.920 --> 0:10:18.800 of companies. Your company reported earnings. We've heard from Expedy 0:10:18.840 --> 0:10:22.640 and Booking, They Booking Holdings, they both reported double digit 0:10:22.760 --> 0:10:25.559 increases and gross bookings in the first quarter. Investors reacted 0:10:25.600 --> 0:10:28.120 a little bit differently to each of those. You guys 0:10:28.240 --> 0:10:31.760 came out and reported on Tuesday, shares did sell off 0:10:31.840 --> 0:10:33.800 on Wednesday. I just want to go there first of 0:10:34.240 --> 0:10:36.800 First off, what are you hearing from the ALS community 0:10:36.880 --> 0:10:39.160 investors about your results specifically? 0:10:42.280 --> 0:10:44.840 Yeah, so, I guess they if you're looking at our results, 0:10:44.920 --> 0:10:48.040 and we've we've seen solid growth in the first quarter, 0:10:49.200 --> 0:10:52.280 and we've we've seen a slightly lower margin that we 0:10:52.360 --> 0:10:54.840 had last year because we started to invest into our 0:10:54.920 --> 0:10:59.439 brand marketing and into our hotel direct initiative to prepare 0:10:59.480 --> 0:11:05.239 for the sum The reaction on earnings is always against expectations, 0:11:05.360 --> 0:11:08.880 so so apparently expectations have been higher than what we delivered. 0:11:08.920 --> 0:11:12.199 But we're we're happy with with our results and we 0:11:12.280 --> 0:11:14.360 think we are on good track forward summer, So you. 0:11:14.440 --> 0:11:17.880 Expect and then those investments that you're making to work 0:11:17.960 --> 0:11:20.360 and get through the summer, that'll you'll see that in 0:11:20.600 --> 0:11:22.200 subsequent quarters that will pay off. 0:11:23.360 --> 0:11:25.520 Yeah. I mean, I guess you have obviously your your 0:11:25.760 --> 0:11:30.360 your direct direct performance marketing investment that have an immediate payoff. 0:11:30.400 --> 0:11:34.800 And then we've always been very strong in in brand marketing, 0:11:34.960 --> 0:11:37.760 and they're in particularly in TV. You produce our spots 0:11:37.840 --> 0:11:40.480 in house, we we test them in house, et cetera. 0:11:41.000 --> 0:11:43.120 So that's that's one of our core strengths, and they're 0:11:43.160 --> 0:11:47.319 the payoff is it's not immediate, but you get significant 0:11:48.080 --> 0:11:50.880 payback within the first year, and then you're obviously building 0:11:50.920 --> 0:11:54.160 it up and coming out of the pandemic, we obviously 0:11:54.280 --> 0:11:56.719 need to build up that that brand equity and and 0:11:58.600 --> 0:12:01.319 revamp it in a way so you will see the 0:12:01.360 --> 0:12:04.600 positive effect of the campaigns really of the quarters to come. 0:12:05.200 --> 0:12:06.920 Something that I thought was interesting, you did have a 0:12:07.000 --> 0:12:10.880 survey recently that showed that consumers they were comparing prices 0:12:11.000 --> 0:12:13.920 more than they had been, especially as we are going 0:12:14.000 --> 0:12:16.439 into the summer travel season. What is this telling you 0:12:16.800 --> 0:12:19.160 and telling all of us really about the consumers as 0:12:19.200 --> 0:12:21.240 far as just trying to find cheaper prices at this 0:12:21.320 --> 0:12:24.079 point when inflation obviously is still troubling for some of 0:12:24.120 --> 0:12:24.920 these ticket prices. 0:12:26.080 --> 0:12:28.079 I mean, that's exactly the reason. I mean, the inflation 0:12:28.240 --> 0:12:31.480 is sky high in most of the western countries and 0:12:33.360 --> 0:12:37.160 there real wage contractions in quite a lot of countries, 0:12:37.280 --> 0:12:40.400 so consumers need to save money and they saved money 0:12:40.400 --> 0:12:42.520 in the daily groceries, and they saved money when they 0:12:42.559 --> 0:12:46.520 are traveling. But what is interesting is that that people 0:12:46.640 --> 0:12:48.520 do want to travel. So what they do is they 0:12:48.600 --> 0:12:51.360 compare more prices. As you said, So in the US 0:12:51.400 --> 0:12:55.360 and our survey, more than sixty percent of Americans said 0:12:55.400 --> 0:12:58.280 that they are comparing more hotel prices than they've done before. 0:12:59.120 --> 0:13:02.760 Travelers are cut in their trips short slightly, so the 0:13:02.880 --> 0:13:06.600 length of the average trip is contracting. And the third, 0:13:06.679 --> 0:13:10.400 which I think is probably the most interesting, as travelers 0:13:10.440 --> 0:13:13.119 are becoming more and more flexible in terms of destination, 0:13:13.400 --> 0:13:16.480 so they are going for a similar experience, but a 0:13:16.600 --> 0:13:20.719 cheaper destination. So if you're looking at at the two 0:13:21.160 --> 0:13:24.680 most interesting pairs from a US perspective, Canada is down 0:13:24.800 --> 0:13:29.760 relatively speaking, Mexico is up in terms of nearby a 0:13:29.880 --> 0:13:33.559 new shore international travel, UK down, and Turkey up. But 0:13:33.679 --> 0:13:38.160 the theme is the same. So it is a trip abroad, 0:13:38.240 --> 0:13:42.640 but it is a slightly cheaper experience. And that's how consumers, 0:13:42.679 --> 0:13:44.280 and that's not learning in the US, that that's pretty 0:13:44.360 --> 0:13:47.640 much everywhere in the Western world, are trying to compensate 0:13:47.760 --> 0:13:50.439 for some of the price increases that that you see everywhere. 0:13:50.760 --> 0:13:53.959 Does what you're seeing axels say to you recession in 0:13:54.120 --> 0:13:57.320 terms of what consumers are doing, are just being prudent. 0:13:58.600 --> 0:14:01.280 I don't think I would talk about a recession. I mean, 0:14:01.880 --> 0:14:04.240 we think that the travel market overall will be up, 0:14:04.760 --> 0:14:07.079 but it will not be up as much as the 0:14:07.160 --> 0:14:11.559 prices are up also, so consumers are obviously trying to 0:14:12.080 --> 0:14:16.520 soften the impact of the price increases. But still, I mean, 0:14:16.559 --> 0:14:20.640 it's a good market, but people cannot print money, so 0:14:20.880 --> 0:14:22.280 they can only spend a dollar once. 0:14:23.840 --> 0:14:26.480 And you're talking about these different regions. I mean, how 0:14:26.600 --> 0:14:28.840 much of a boost when it comes to the reopening 0:14:28.880 --> 0:14:31.440 in China in particular, do you think that'll have on 0:14:31.560 --> 0:14:35.200 that particular corner of the market, I. 0:14:35.240 --> 0:14:37.440 Mean the Asia. I mean this is the year of Asia, 0:14:37.560 --> 0:14:39.920 that's for sure. I mean we don't only have China. 0:14:40.000 --> 0:14:45.840 We also have Japan that reopened more recently. We don't 0:14:45.880 --> 0:14:48.760 operate in China. So China for US is only a destination, 0:14:48.920 --> 0:14:51.720 but it's a very very important destination for many of 0:14:51.800 --> 0:14:57.000 our Asian markets, Singapore, Hong Kong, Taiwan, and South Korea, Japan, 0:14:57.040 --> 0:15:00.680 et cetera. Japan is for US both. I mean the 0:15:00.720 --> 0:15:05.080 country will operated so it's it's an outbound inbound market 0:15:05.160 --> 0:15:07.680 and we see very strong growth there and we see 0:15:08.160 --> 0:15:10.440 exactly the same thing that we've seen in the West 0:15:10.560 --> 0:15:13.360 last year and the year before that. There there is 0:15:13.440 --> 0:15:16.880 a huge pandal demand of people that do want to 0:15:16.920 --> 0:15:19.240 see their friends, they do want to visit family, they 0:15:19.320 --> 0:15:22.680 do want to see business partners, and then there's a 0:15:22.760 --> 0:15:24.760 wave of travel coming, you. 0:15:24.800 --> 0:15:28.000 Know, axel over over the last few years, certainly, you know, 0:15:28.320 --> 0:15:30.640 during the pandemic. Out of the pandemic, we've talked about 0:15:30.640 --> 0:15:33.360 a lot of bigger, broader macro issues of running a company, 0:15:33.440 --> 0:15:35.800 and you know, one of the things is accessing a 0:15:35.920 --> 0:15:38.440 workforce and you tap into a global workforce in a 0:15:38.520 --> 0:15:41.560 big way. Where are you on that Are you hiring? 0:15:41.720 --> 0:15:44.440 Do you need to hire? What can you tell us 0:15:44.440 --> 0:15:46.080 about that? On a day where we were focused on 0:15:46.280 --> 0:15:46.920 us jobs. 0:15:48.280 --> 0:15:50.400 Yeah, I mean we we are. We are hiring, of course, 0:15:50.440 --> 0:15:54.760 I mean you need to hire. The labor market in 0:15:54.800 --> 0:15:59.760 particularly for for highly skilled labor is very tight and 0:16:00.000 --> 0:16:03.040 Europe and we are in a fortunate position that we 0:16:03.160 --> 0:16:05.640 do have a global brand and we can attract people 0:16:05.640 --> 0:16:07.760 from all over the world. So right now we are 0:16:07.920 --> 0:16:13.120 down to fifteen percent of our new colleagues are from Germany. 0:16:13.200 --> 0:16:17.720 Eighty five percent are from outside of Germany. India is 0:16:18.560 --> 0:16:21.400 a strong country where we are recruiting from. Russia actually 0:16:21.680 --> 0:16:24.280 has become a lot stronger in the last twelve months 0:16:24.320 --> 0:16:31.280 for obvious reasons. Yeah, so I think you absolutely need 0:16:31.400 --> 0:16:36.240 to recruit internationally if you want to fill a specialist positions. 0:16:36.400 --> 0:16:38.640 Tell me about India specifically, because I feel like in 0:16:38.680 --> 0:16:41.360 the last couple of months the discussion and narrative around 0:16:41.400 --> 0:16:43.400 India has changed dramatically, and some of it has to 0:16:43.440 --> 0:16:46.920 do with Apple in terms of it increasingly focusing on 0:16:47.040 --> 0:16:49.680 that not only as a place to produce, but also 0:16:49.800 --> 0:16:53.960 to sell. Is that something too that you are pivoting 0:16:54.040 --> 0:16:55.840 more towards or is that Just talk to us a 0:16:55.840 --> 0:16:56.880 little bit about that if you would. 0:16:57.880 --> 0:16:59.520 Yeah. I mean for us, it's a bit different because 0:16:59.560 --> 0:17:01.920 we just operating out of one office. So for us, 0:17:02.000 --> 0:17:04.480 it's more the strength of our brand and the local market. 0:17:04.560 --> 0:17:08.040 And India is a very big market for us because 0:17:08.080 --> 0:17:11.200 it's a very big country and we we're not operating 0:17:11.280 --> 0:17:14.399 in China, so it's the biggest country that we operate in, 0:17:16.000 --> 0:17:18.560 and that's why there's always been strong Russia. As I 0:17:18.600 --> 0:17:22.040 said has become a more important market to recruit and 0:17:22.280 --> 0:17:27.040 Africa actually is also growing very quickly as as a 0:17:27.119 --> 0:17:29.280 region where we can recruit top talent from. 0:17:29.800 --> 0:17:31.879 We only have about a minute left, but Carol and 0:17:31.920 --> 0:17:34.879 I have talked to so many different people about how 0:17:35.040 --> 0:17:37.560 AI has impacted their business. It's curious. How do you 0:17:37.760 --> 0:17:39.560 use AI when it comes to your platform. 0:17:40.359 --> 0:17:42.760 Yeah, it's it's an interesting question. I mean our platform 0:17:42.840 --> 0:17:45.399 has been run on AI or on machine learning for 0:17:45.520 --> 0:17:48.000 a very long time. I mean we use machine learning 0:17:48.040 --> 0:17:51.879 algorithms to to to ensure that we show the right 0:17:51.960 --> 0:17:55.239 hotels in the right place and the right prices. If 0:17:55.280 --> 0:17:58.080 you if you think more about CHEDGPT and the next 0:17:58.160 --> 0:18:02.359 generation of AI, that's very very interesting for certain applications 0:18:02.880 --> 0:18:05.960 on the travel space. It's more for the inspiration phase 0:18:06.040 --> 0:18:08.360 from our perspective, So if you don't really know where 0:18:08.480 --> 0:18:11.600 to go and when to go, and then it is 0:18:11.960 --> 0:18:16.320 obviously extremely valuable if you want to generate a lot 0:18:16.359 --> 0:18:20.119 of content in an automated way. So it will make 0:18:20.160 --> 0:18:23.359 a difference with the industry and you need to stay 0:18:23.400 --> 0:18:25.919 open minded of course, and then that's what we've always. 0:18:25.680 --> 0:18:26.520 Been doing well. 0:18:26.960 --> 0:18:27.120 Ax. 0:18:27.280 --> 0:18:28.840 We always appreciate the time with you. I know it's 0:18:28.840 --> 0:18:30.720 a little bit later over there, so thank you so much. 0:18:30.760 --> 0:18:33.280 Have a great weekend. Axl He for his chief executive 0:18:33.280 --> 0:18:36.959 officer of Travago. On zoom from Dusseldorf, Germany. 0:18:37.920 --> 0:18:41.439 You're listening to the Bloomberg Business Week podcast. Catch us 0:18:41.520 --> 0:18:45.520 live weekday afternoons from three to six Easter on Bloomberg Radio, 0:18:45.760 --> 0:18:49.000 the Bloomberg Business App, and YouTube. You can also listen 0:18:49.119 --> 0:18:52.200 live on Amazon Alexa from our flagship New York station, 0:18:52.680 --> 0:18:55.720 Just Say Alexa play Bloomberg eleven thirty. 0:18:57.080 --> 0:18:59.720 On the Bloomberg story I read in earlier this morning 0:18:59.760 --> 0:19:02.520 about New York Attorney General Letitia James proposing a state 0:19:02.840 --> 0:19:06.119 a lot of titan rules over cryptocurrency companies. It's her 0:19:06.200 --> 0:19:08.719 latest swing at an industry she claims is suffering from 0:19:08.840 --> 0:19:10.760 quote rampant fraud and dysfunction. 0:19:11.280 --> 0:19:11.399 Now. 0:19:11.480 --> 0:19:14.400 Under her proposal, New York would require independent public audits 0:19:14.560 --> 0:19:17.920 of crypto exchanges and bar people from owning both brokerages 0:19:17.960 --> 0:19:21.080 and tokens to prevent conflicts of interest. In the statement today, 0:19:21.160 --> 0:19:23.880 James calling her proposal quote the strongest and most comprehensive 0:19:23.960 --> 0:19:27.000 set of regulations at cryptocurrency in the nation and I 0:19:27.080 --> 0:19:28.880 got to say, just one thing we know for sure, 0:19:29.240 --> 0:19:32.399 after the carnage of the last year or so, regulators 0:19:32.440 --> 0:19:37.119 are looking very very closely at cryptocurrencies and anything related 0:19:37.200 --> 0:19:37.840 with it, and. 0:19:37.960 --> 0:19:41.080 Even just the dynamic of how say, Bitcoin in particular 0:19:41.240 --> 0:19:43.399 was performing, especially in March, right in the midst of 0:19:43.480 --> 0:19:45.760 what was happening with the banks, I mean, especially after 0:19:45.840 --> 0:19:47.840 we just got off of April. This is the longest 0:19:47.880 --> 0:19:50.160 winning streak for bitcoin since twenty twenty one. 0:19:50.160 --> 0:19:52.440 But a lot of holatility and still trying to understand 0:19:53.000 --> 0:19:56.000 how it all fits together going forward. And on that. 0:19:56.240 --> 0:19:59.240 In our weekly crypto segment, we have with us Christopher Alexander. 0:19:59.240 --> 0:20:03.720 He's Chief Communitycations Officer at Liberty Blockchain. They're a blockchain provider. 0:20:03.960 --> 0:20:07.040