Microsoft president sees ‘new era’ of stagnating labor pool

Microsoft President Brad Smith speaks during a Reuters Newsmaker event in New York, US, September 13, 2019. (File: Reuters/Gary He)
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Updated 18 July 2022
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Microsoft president sees ‘new era’ of stagnating labor pool

  • The trend of around 5 million people expanding the US working age population every five years since 1950 has shifted

REDMOND, Washington: US companies are facing a “new era” in which fewer people are entering the workforce and pressure to pay higher salaries may become permanent, Microsoft Corp’s President Brad Smith told Reuters in an interview.
At the software maker’s Redmond, Washington, headquarters, Smith highlighted one source of what he called today’s “greater economic turbulence.” In his office, he walked over to a wall-sized touchscreen device and pulled up a series of charts, showing how population growth has tumbled in the United States, Europe, China and Japan.
The trend of around 5 million people expanding the US working age population every five years since 1950 has shifted, starting in the period between 2016 and 2020 when growth slowed to 2 million, and is now slowing further, said Smith late last week, citing United Nations data. Major markets overseas have seen outright labor force declines.
“That helps explain part of why you can have low growth and a labor shortage at the height at the same time. There just aren’t as many people entering the workforce,” said Smith, who helps oversee the nearly $2 trillion company selling cloud-computing services to major businesses.
Government stimulus during the pandemic, COVID-19 concerns, childcare and other factors have contributed to the current labor shortage as well.

Executives including Mark Zuckerberg, chief executive of Facebook parent Meta Platforms Inc, have recently fretted about the economy. Zuckerberg warned the United States might face “one of the worst downturns that we’ve seen in recent history,” though Smith said it would be premature to declare a recession inevitable.
Competing for limited workers, Microsoft recently boosted pay at the same time as it slowed hiring, company officials said. The software maker also trimmed a small percentage of jobs pegged to the start of its new fiscal year.
Smith said Microsoft’s business selling productivity tools, cloud services and technology with artificial intelligence, which enterprises may need in a downturn, sets it up to weather economic challenges. The company has recently faced antitrust scrutiny in Europe, and Smith said Microsoft had until October to “finalize the implementation” of changes he promised.
US Department of Labor data from June showed employers broadly had continued to raise wages and hire more workers than expected. Labor force participation, however, shrank for the second time in three months, to 62.2 percent, showing no persistent improvement since the start of 2022.
Population growth has become a hot topic in the tech industry. Tesla Inc. CEO Elon Musk, who reportedly has nine children including newborn twins, has particularly drawn attention to the low US birth rate. “Doing my best to help the underpopulation crisis,” he wrote on Twitter.
Smith said he concurred with Musk “maybe in the problem. I’m not recommending the same solution.”

 


Omnicom Media Group consolidates influencer marketing services in Mideast

Updated 15 May 2025
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Omnicom Media Group consolidates influencer marketing services in Mideast

DUBAI: Omnicom Media Group has announced that it will consolidate its influencer marketing capabilities in the Middle East and North Africa region under influencer management agency Creo following a global directive last month.

The move “ensures our clients can harness the full potential of this communication channel” as digital consumption grows in the region and influencers play an “instrumental role in shaping brand perceptions,” said CEO Elda Choucair.

Creo will give the group’s clients “access to the same advanced tools, talent and technology we’ve developed globally, but adapted to our region’s unique landscape,” she added.

These include tools such as the Creo Influencer Agent, an AI-powered influencer selection tool; the Omni Creator Performance Predictor, which uses machine learning to predict the performance of content on Instagram; and the Creator Briefing Tool, which helps influencers create and get feedback on their content through Google’s AI chatbot Gemini.

The agency will also leverage exclusive partnerships with platforms such as Amazon, TikTok, Instagram and Snapchat in the region.

Anthony Nghayoui, head of social and influencer at Omnicom Media Group, has been appointed to lead Creo.


Aramco holds steady on Kantar’s most-valuable global brands list for 2025

Updated 15 May 2025
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Aramco holds steady on Kantar’s most-valuable global brands list for 2025

  • US brands dominate, comprising 82 percent of the value in top 100

DUBAI: Saudi Arabia’s Aramco continues to hold a place in the annual BrandZ Most Valuable Global Brands Report 2025 by marketing data and analytics company Kantar.

Although it dropped by eight places to No. 22, Aramco is the only brand from the Middle East to have a presence in the global ranking.

US brands dominate the list, comprising 82 percent of the total value of the top 100 brands.

However, the report signals changing times, with Chinese brands having doubled their value over the past 20 years, now making up 6 percent of the value of the top 100 brands.

European brands, on the other hand, have seen a decline. They now account for 7 percent — down from 26 percent in 2006 — of the top 100 brands.

The top five spots are taken by tech companies Apple, Google, Microsoft, Amazon and Nvidia.

“Innovators keeping up with consumer needs or redefining them entirely are the brands fundamentally reshaping the Global Top 100 over the past two decades,” said Martin Guerrieria, head of Kantar BrandZ.

The most successful brands, like Apple, Amazon, Google and Microsoft, have long moved away from their original product base, he added.

Apple retained its top position for the fourth year in a row with a brand value of $1.3 trillion, up 28 percent from 2024.

Google and Microsoft recorded a 25 percent and 24 percent increase in brand value this year compared to last year, while Amazon’s brand value rose by a massive 50 percent.

ChatGPT debuted on the list this year in 60th place, showing “how a brand can find fame and influence society to the extent that it changes our daily lives,” Guerrieria said.

He cautioned that as competition grows in the AI space, “OpenAI will need to invest in its brand to preserve its first-mover momentum.”

Despite controversies and concerns, Instagram and Meta saw significant growths of 101 percent and 80 percent, respectively, while TikTok grew by a modest 25 percent.

The success of brands like Apple and Instagram “underlines the power of a consistent brand experience that people can relate to and remember,” said Guerrieria.

He added: “In a world of digital saturation and tough consumer expectations, brands need to meet people’s needs, connect with them emotionally and offer something others don’t to succeed. They need to be not just different, but meaningfully so.”


UK to allow foreign states to own a 15 percent stake in newspapers

Updated 15 May 2025
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UK to allow foreign states to own a 15 percent stake in newspapers

  • Proposed media reforms could resolve the long-standing uncertainty surrounding the ownership of the Telegraph newspaper
  • In 2023, Abu Dhabi-backed RedBird IMI assumed control of the Telegraph titles and The Spectator by helping repay the Barclay family’s £1.2 billion debt

LONDON: Britain plans to allow foreign state-owned investors to own up to 15 percent of British newspaper publishers, the government said on Thursday, as part of media reforms that could end long-running uncertainty over ownership of the Telegraph newspaper.
The government will also expand its powers to scrutinize media mergers to include news websites and news magazines.
“These important, modernizing reforms are about protecting media plurality and reflect the changing ways in which people are consuming news,” Culture Secretary Lisa Nandy said.
“We are fully upholding the need to safeguard our news media from foreign state control whilst recognizing that news organizations must be able to raise vital funding.”
The ownership of the Telegraph, one of Britain’s best known newspapers, has raised questions about the independence of the media and foreign states buying political influence.
The government said “targeted exceptions” allowing certain sovereign wealth funds or pension funds to invest up to 15 percent in British newspaper and periodicals would help sustain the titles while also limiting any foreign influence in media.
The government does not plan to exempt debt financing, but warned that if a foreign power gains control through a default, it could trigger a ministerial intervention under existing rules.
Britain’s previous Conservative government last year banned foreign state investment in British newspapers, blocking RedBird IMI, run by former CNN boss Jeff Zucker and with the majority of its funding from Abu Dhabi, from owning the Telegraph.
Abu Dhabi-backed RedBird IMI took control of the Telegraph titles and the Spectator magazine in 2023 when it helped repay the Barclay family’s 1.2 billion pound ($1.6 billion) debt to Lloyds Bank.
It put the titles up for sale nearly a year ago. The Spectator was sold to hedge fund founder Paul Marshall in September, but the Telegraph has not found a buyer.
The 15 percent cap would allow Abu Dhabi to retain some ownership of the paper.


Israel’s presence still roils Eurovision a year after major protests over the war in Gaza

Updated 15 May 2025
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Israel’s presence still roils Eurovision a year after major protests over the war in Gaza

  • About 200 pro-Palestinian demonstrators marched Wednesday in the Swiss host city of Basel
  • Oddsmakers suggest Raphael is likely to secure a place in Saturday’s final with her song “New Day Will Rise”

BASEL: Most contestants at the Eurovision Song Contest are seeking as much publicity as possible.
Israel’s Yuval Raphael is keeping a low profile.
The 24-year-old singer has done few media interviews or appearances during Eurovision week, as Israel’s participation in the pan-continental pop music competition draws protests for a second year.
Raphael is due to perform Thursday in the second semifinal at the contest in the Swiss city of Basel. Oddsmakers suggest Raphael is likely to secure a place in Saturday’s final with her anthemic song “New Day Will Rise.”
Israel has competed in Eurovision for more than 50 years and won four times. But last year’s event in Sweden drew large demonstrations calling for Israel to be kicked out of the contest over its conduct in the war against Hamas in Gaza.
More than 52,800 people in Gaza have been killed in Israel’s military offensive, according to the territory’s health ministry.
About 200 people, many draped in Palestinian flags, protested in central Basel on Wednesday evening, demanding an end to Israel’s military offensive and the country’s expulsion from Eurovision. They marched in silence down a street noisy with music and Eurovision revelry.
Many noted that Russia was banned from Eurovision after its 2022 invasion of Ukraine.
“It should be a happy occasion that Eurovision is finally in Switzerland, but it’s not,” said Lea Kobler, from Zurich. “How can we rightfully exclude Russia but we’re still welcoming Israel?”
Last year, Israeli competitor Eden Golan received boos when she performed live at Eurovision. Raphael told the BBC that she expects the same and has rehearsed with background noise so she won’t be distracted.
“But we are here to sing and I’m going to sing my heart out for everyone,” she said.
Anti-Israel protests in Basel have been much smaller than last year in Malmo. Another protest is planned for Saturday in downtown Basel, 2 miles (3.2 kilometers) from the contest venue, St. Jakobshalle arena.
But concern by some Eurovision participants and broadcasters continues.
More than 70 former Eurovision contestants signed a letter calling for Israel to be excluded. Several of the national broadcasters that fund Eurovision, including those of Spain, Ireland and Iceland, have called for a discussion about Israel’s participation.
Swiss singer Nemo, who brought the competition to Switzerland by winning last year, told HuffPost UK that “Israel’s actions are fundamentally at odds with the values that Eurovision claims to uphold — peace, unity, and respect for human rights.”
At Wednesday’s protest, Basel resident Domenica Ott held a handmade sign saying “Nemo was right.”
She said the nonbinary singer was “very courageous.”
“If Russia couldn’t participate, why should Israel?” she said.
The European Broadcasting Union, which runs Eurovision, pointed out that Israel is represented by its public broadcaster, KAN, not the government. It has called on participants to respect Eurovision’s values of “universality, diversity, equality and inclusivity” and its political neutrality.


Meta faces row over plan to use European data for AI

Updated 14 May 2025
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Meta faces row over plan to use European data for AI

  • Its rollout on the continent was delayed by more than a year as a result of overlapping European regulations on emerging technologies
  • Meta has been hit with multiple privacy complaints in Europe

VIENNA: A Vienna-based privacy campaign group said Wednesday it has sent a cease-and-desist letter to Meta, after the tech giant announced plans to train its artificial intelligence models with European users’ personal data.
The move comes after Meta said last month it would push ahead with plans to use personal data from European users of its Instagram and Facebook platforms for AI technology training from May 27, despite criticism over its legality.
Meta has been hit with multiple privacy complaints in Europe, but cited a “legitimate interest” to process personal data for AI training.
The privacy group, the European Center for Digital Rights — also known as Noyb (“None of Your Business“) — threatened to file an injunction or class-action lawsuit against Meta if it does not halt plans.
“Meta’s absurd claims that stealing everyone’s (personal) data is necessary for AI training is laughable,” Noyb founder Max Schrems said in a statement.
“Other AI providers do not use social network data — and generate even better models than Meta,” he added.
When Meta AI first launched in the European Union in late March, the tech giant was at pains to point out that the chatbot was not trained on data from European users.
Its rollout on the continent was delayed by more than a year as a result of overlapping European regulations on emerging technologies, including user data, AI and digital markets.
Following the complaints, Meta temporarily put its AI plans on hold in June 2024, before recently announcing it would go ahead with them.
“It is... totally absurd to argue that Meta needs the personal data of everyone that uses Facebook or Instagram in the past 20 years to train AI,” Schrems said, adding the plans were “neither legal nor necessary.”
“Meta simply says that (its) interest in making money is more important than the rights of its users,” he said, adding that users could simply be asked for their consent.
With about 400 million estimated Meta users in Europe, the approval of 10 percent of them would “already clearly be sufficient” for AI language training and the like, Schrems said.
Launched in 2018, Noyb has taken several court proceedings against technology giants, often prompting action from regulatory authorities.