The resolution to the so-called fiscal cliff went as many had expected, with the top 1% getting hit the hardest while other, less affluent workers took less of a blow. For those who remain unemployed, the resolution likely won’t lead to a flood of job offers, but it also shouldn’t result in a noticeable uptick in the unemployment rate.
Those who earn more than $400,000, or couples who take home north of $450,000, will see their top marginal tax rate rise from 35% in 2012 to 39.6% in 2013, with taxes on long-term capital gains, dividends and estates also rising.
As for hiring, there are two diverging trends at play that will likely result in little change to the unemployment rate. First, the payroll tax holiday has expired, with the employee portion of Social Security contributions increasing across the board. This will result in lower take-home pay for all Americans and, in turn, lead to less spending and a declining need to hire, Michael Feroli, chief U.S. economist for JPMorgan Chase, told the L.A. Times.
On the other hand, many companies acknowledged last year that they had curbed hiring due to the uncertainty surrounding the fiscal cliff. With a resolution in place, employers finally understand the landscape and can hire accordingly. Hopefully the latter trend outweighs the former.
Twenty Financial Firms Set to Hire in 2013 (eFinancialCareers)
It’s been a difficult year on Wall Street, with layoffs, scandals and depressing balance sheets making most of the headlines. Still, some finance firms are fighting through the regulatory red tape and economic hiccups to add to their workforce.
All is Quiet (WSJ)
The mergers and acquisitions market had a relatively busy fourth quarter, but the strong finish didn’t make up for an otherwise slow year. And the outlook for 2013 is murky at best.
Exchanges Need Help (WSJ)
With all the negative headlines exchanges made in 2012 – such as the Facebook IPO nightmare and the Knight trading glitch – we’ll surely see increased oversight, stricter testing standards and the implementation of more robust technology in 2013. That means more investment and more jobs.
What Slow Economy? (Bloomberg)
The 100 richest people in the world did just fine in 2012, adding more than $240 billion to their collective bankrolls, with only 16 booking a net loss for the year.
Just in the Nick of Time (Fox Business)
Ten Goldman Sachs execs received previously restricted stock awards totaling roughly $65 million on New Year’s Eve, a day before new tax rates would have cost them hundreds of thousands of dollars.
More Deleveraging? (Bloomberg)
Divestitures, downsizings and de-mergers would be great for stock prices, says CLSA’s Mike Mayo, who envisions a scenario where large banks sell off business units and scale back even further to minimize risk.
Diversity on Wall Street is ‘Appalling’ (eFinancialCareers)
“The state of diversity in the finance industry is appalling,” John Rogers, founder and chief executive of Chicago-based Ariel Investments, tells eFC. “People aren’t demanding that industries reflect the society in which they live.”
Buzz Around the Office
A Cloudy Mind (MSN)
A 54-year-old Florida man was arrested this week after reporting a home invasion to police and allowing them to search his house. He must have forgotten about the 110 marijuana plants that he was growing in his spare bedroom.
List of the Day: New Year’s Resolutions
When it comes to your career, there are certain resolutions that you should aim to keep.
- I will talk less and listen more.
- I will focus more on being competent than being liked.
- I will respond to emails within 24 hours.
(Source: AOL Jobs)