U.S. economic growth grinds slower on supply woes. Plus: Big banks bet on crypto talent, Microsoft reclaims mantle of most valuable company, and more

Welcome back to This Week in Finance, your weekly roundup of the conversations trending among financial professionals on LinkedIn. Click Subscribe to be notified of each edition. This week:

U.S. economic growth grinds down to 2%

U.S. growth?braked sharply in the third quarter?amid supply-chain issues and the spread of the delta variant. Gross domestic product expanded by 2%, the slowest pace of the pandemic recovery, after a breakneck 6.7% in the prior period. Crimping expansion the most was personal consumption, which grew 1.6% between July and September, after jumping 12% in the second quarter, the Commerce Department said. Snarled supply chains and labor shortages fed price increases and weighed on spending. ?? Here's what people are saying.

• COVID hits jobs worse than expected: The amount of work lost due to the pandemic will be significantly more than was forecast just a few months ago, according to the International Labour Organization, due to a diverging recovery that "threatens the global economy." In what it called a dramatic revision, the ILO now expects global hours worked in 2021 will be 4.3% below pre-pandemic levels — the equivalent of 125 million full-time jobs — compared with the 3.5% projection it published in June.

• Workers most confident since 2000: Americans’ confidence in the labor market is the strongest it’s been since 2000. An index in the Conference Board’s Consumer Confidence survey shows optimists not only outweighed pessimists by the most last month during the pandemic era, but for the century. While that’s great news for job seekers — and generally translates into an elevated quit rate — it can spell trouble for managers seeing a labor shortage, as workers leave jobs before finding new ones or hold out for posts that meet heightened expectations.
• Wages are rising for worker retention: As employers look to tighten their grip on employee retention amid an ongoing labor shortage, a record number of business leaders say they expect to keep raising wages. According to a new survey from the National Association for Business Economics, 58% increased pay at their firms during the third quarter, and roughly the same share expects to continue doing so in the coming months.
• Americans face 'double debt dilemma': Some older borrowers are "getting hit both ways," burdened by student debt on top of 401(k) loans — and they often have higher student loan balances than younger generations due to accrued interest. According to data from Fidelity Investments, the average student debt for baby boomers is $58,300, compared with $51,400 for Gen X borrowers, $46,400 for millennials, and $27,900 for Gen Zers. Meanwhile, roughly 30% of boomers and 32% of Gen Xers with student loans also have a 401(k) loan.

Banks go big on crypto talent

Banks are betting big on cryptocurrency, aggressively ramping up hiring of professionals with crypto expertise amid the rise of digital currencies. Financial services firms will add more than three times as many staff with digital-asset experience this year than in 2015, according to?research from LinkedIn’s Economic Graph team. That pace jumped 40% in the first half of 2021 alone. Meanwhile, overall demand for cryptocurrency talent is the highest it’s ever been: U.S. job postings that mention terms like “crypto” or “blockchain” skyrocketed 615% in August from a year earlier. ?? Here's what people are saying.

Biden, G20 leaders endorse tax deal

U.S. President Biden joined world leaders in the opening session of the?Group of 20 summit Saturday to endorse a?global agreement that aims to prevent corporations from sending profits — and jobs — overseas to reduce their tax burden. The announcement denotes the world’s "most aggressive attempt" yet to put a stop to companies sheltering profits in tax havens where companies "often maintain little physical presence."

• The deal would enshrine a minimum 15% corporate tax rate on "nearly every country in the world" and include punitive measures for nations that decline to follow the rules. The OECD contends the accord could rake in $150 billion a year globally from companies that squirrel away profits in haven jurisdictions.
• Here's what people are saying.
• Biden budget comes in at $1.85T: Biden unveiled a $1.85 trillion domestic spending bill half as big as originally envisioned, which still encompasses support for child care — as well as a plan to wean the economy from fossil fuels. Missing from the framework agreement are $500 billion for a federal paid family and medical leave benefit, free community college, and incentives for utilities to switch to renewable energy.

Citi says 'no jab, no job'

Citigroup is?requiring COVID-19 vaccines?for U.S. employees "as a condition of their employment," making it Wall Street's first major bank to enforce such measures. The bank's head of human resources said in a post on LinkedIn that the decision?came down to two factors: the Biden administration's vaccine mandate for federal contractors and the health and safety of its workforce returning to offices. Citigroup has asked staff to submit proof of vaccination by Jan. 14; those who comply by Dec. 8?will receive $200. ?? Here's what people are saying.

Microsoft now most valuable company

Microsoft zoomed past Apple on Friday to claim the mantle of the most valuable U.S. listed company?for the first time since July 2020. The software giant (and LinkedIn's parent company) unveiled a "better-than-expected earnings report," while Apple on Thursday revealed that supply chain issues are hobbling its ability to meet demand across its product line. Microsoft's market capitalization stands at $2.49 trillion; the company and Apple are the sole U.S. firms retaining a market value above $2 trillion. ?? Here's what people are saying.

Other earnings and stock-market updates:

• Supply issues take bite out of Apple
• Amazon falls flat after COVID boom
• Google delivers blockbuster bounty
• Embattled Facebook posts strong quarter
• Chip shortage deals blow to GM
• Spotify's bet on podcasts pays off
• Meta stock spikes, but not Facebook's
• Rent the Runway comes to Wall Street
• Tesla, teaming up with Hertz, hits $1T
• Sweetgreen officially files for IPO

PayPal-Pinterest deal a no-go

PayPal said?it's "not pursuing an acquisition of Pinterest at this time" following?negative reactions?from shareholders over the potential deal. An?acquisition, valued at an estimated $45 billion, would have been one of the biggest consumer-internet takeovers in recent history. But PayPal shares tumbled on the news, signaling concerns from investors. PayPal is facing a tidal wave of competitors in the digital payments space, and a combination with Pinterest would have expanded its reach to the beginning of consumers' online-shopping process. ?? Here's what people are saying.

The return on investment of MBAs

Good news for those investing in a costly MBA degree:?A Wall Street Journal analysis?shows that graduates at 98% of universities that offer master’s of business administration programs were making more money than they had borrowed two years out of business school. Meanwhile, only 6% of those who graduated from law school were, two years later, making more than they had borrowed. Ranging in tuition fees of $100,000 to $250,000, MBAs are among the more expensive degrees, but jobs that result are often in higher-paying fields. ?? Here's what people are saying.

A fresh threat to economic recovery?

Surging energy prices across the globe may put economic recovery in the wake of the pandemic in jeopardy,?according to The Economist. Rising fuel costs increase the cost of doing just about anything, and those costs are passed down to consumers. We're already seeing an uptick in inflation rates, with 3.4% and 4% inflation in September in Europe and the U.S., respectively. And when consumers devote more of their earnings to their energy bills, they have less cash on hand to buy other things, setting the stage for a slowdown in economic growth. ?? Here's what people are saying.

With?Cate Chapman,?Gianna Prudente, Juliette Faraut,?Andrew Murfett,?Jake Perez, Monica Fike,?Kelli Nguyen,?Jessica Hartogs, and Scott Olster.

What's your take on the week's news and other developments impacting you or your business? Join the conversation in the comments below.