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With family budgets already squeezed, back-to-school costs sting more

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With family budgets already squeezed, back-to-school costs sting more

When August rolls around, Gloria Ponce braces for the line she knows she’ll need to add to the family budget.

The San Gabriel mother of six shells out hundreds of dollars every summer to get her four school-age kids ready for the school year with new supplies, clothes and shoes.

The expenses include accessories, backpacks and pencils and total about $300 to $500 per child, she said. It’s a financial strain on her family that’s worse this year because high inflation rates in recent years have ramped up the price of basic goods.

“We always end up putting money aside a few months before because we know this is going to hit us like a ton of bricks,” said Ponce, who has four children in Los Angeles public schools.

Ponce is hardly alone. Los Angeles parents will spend almost $200 more this year than last on back-to-school expenses and 57% more than the national average, according to a survey conducted by consulting firm Deloitte.

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One mother reported spending around $30 more on the same backpack and lunchbox she bought last year.

“I can absorb that, but so many families don’t have that luxury,” she wrote in a Facebook thread on back-to-school shopping. “What are they supposed to do?”

The Deloitte survey found that Los Angeles parents are spending an average of $921 per child on back-to-school shopping compared with a national average of $586, which was slightly lower than last year’s national average. More than half of Angelenos surveyed said their top reason for spending more was a general increase in prices compared with last year.

Seventy-three percent of consumers nationally said they are concerned about rising prices for everyday purchases and are allotting higher budgets for nondiscretionary expenses. Across income levels, parents are weighing prices and priorities as they prepare for the new school year.

“Inflation is top of every consumer’s mind,” said Rebecca Lohrey, Deloitte’s Los Angeles-based audit and assurance partner. “Similar to how everybody in the country is feeling, Los Angeles parents expect things to cost more.”

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For some, the rise in prices means stricter budgeting. Low- and middle-income parents are spending less on back-to-school items year over year and are cutting back on other expenses to save money, according to the survey, which had 529 respondents in Los Angeles and 1,198 nationally.

But in Los Angeles, the average parent is spending more in every category, including clothing and accessories, tech products and school supplies. Eighty-six percent said they expect to spend the same or more on back-to-school items this year.

Spending on tech products saw the biggest jump from last year, with Los Angeles parents spending $648 on tech in 2024 versus $527 in 2023. Nationally, parents spent $431 on tech this year and $499 last year.

Lohrey said three factors are driving the increase in spending among Los Angeles families: the rising cost of goods, additional spending for extracurricular activities and a willingness to splurge on must-have brands.

Nine out of 10 Los Angeles parents enroll their children in extracurricular activities, the survey found, and they plan to spend roughly $700 on fees and equipment.

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That number varies significantly based on income level. Families with an annual income of less than $50,000 will spend an average of $387 on extracurriculars, but families that earn more than $100,000 will spend $902, according to the survey.

Regardless of income, 72% of Los Angeles parents said their child’s preferences influence how much they spend. More than 9 in 10 parents in the area said they’re willing to splurge on the items their children want most in hopes of boosting their confidence and easing the transition back to school.

A Studio City parent who asked to be identified by only her first name, Lisa, because of privacy concerns, said her 13-year-old son and 10-year-old daughter want new clothes, shoes and backpacks every year, not to mention the must-have items that pop up each year such as Stanley water bottles, which cost around $35.

This year, Lisa said, her daughter was asking for a pair of Adidas Samba sneakers, which cost around $100.

The Deloitte survey found that more parents prioritize clothes and accessories over school supplies. If their budget is too tight, 37% of Los Angeles parents said they would first cut back on supplies such as notebooks and pencils. Twenty-six percent said they would first cut back on clothing.

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“I don’t know that it’s a necessity, but it feels like a necessity,” Lisa said of the sneakers. “You don’t want her to be the only kid who doesn’t fit in.”

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U.S. Space Force awards $1.6 billion in contracts to South Bay satellite builders

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U.S. Space Force awards .6 billion in contracts to South Bay satellite builders

The U.S. Space Force announced Friday it has awarded satellite contracts with a combined value of about $1.6 billion to Rocket Lab in Long Beach and to the Redondo Beach Space Park campus of Northrop Grumman.

The contracts by the Space Development Agency will fund the construction by each company of 18 satellites for a network in development that will provide warning of advanced threats such as hypersonic missiles.

Northrop Grumman has been awarded contracts for prior phases of the Proliferated Warfighter Space Architecture, a planned network of missile defense and communications satellites in low Earth orbit.

The contract announced Friday is valued at $764 million, and the company is now set to deliver a total of 150 satellites for the network.

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The $805-million contract awarded to Rocket Lab is its largest to date. It had previously been awarded a $515 million contract to deliver 18 communications satellites for the network.

Founded in 2006 in New Zealand, the company builds satellites and provides small-satellite launch services for commercial and government customers with its Electron rocket. It moved to Long Beach in 2020 from Huntington Beach and is developing a larger rocket.

“This is more than just a contract. It’s a resounding affirmation of our evolution from simply a trusted launch provider to a leading vertically integrated space prime contractor,” said Rocket Labs founder and chief executive Peter Beck in online remarks.

The company said it could eventually earn up to $1 billion due to the contract by supplying components to other builders of the satellite network.

Also awarded contracts announced Friday were a Lockheed Martin group in Sunnyvalle, Calif., and L3Harris Technologies of Fort Wayne, Ind. Those contracts for 36 satellites were valued at nearly $2 billion.

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Gurpartap “GP” Sandhoo, acting director of the Space Development Agency, said the contracts awarded “will achieve near-continuous global coverage for missile warning and tracking” in addition to other capabilities.

Northrop Grumman said the missiles are being built to respond to the rise of hypersonic missiles, which maneuver in flight and require infrared tracking and speedy data transmission to protect U.S. troops.

Beck said that the contracts reflects Rocket Labs growth into an “industry disruptor” and growing space prime contractor.

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California-based company recalls thousands of cases of salad dressing over ‘foreign objects’

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California-based company recalls thousands of cases of salad dressing over ‘foreign objects’

A California food manufacturer is recalling thousands of cases of salad dressing distributed to major retailers over potential contamination from “foreign objects.”

The company, Irvine-based Ventura Foods, recalled 3,556 cases of the dressing that could be contaminated by “black plastic planting material” in the granulated onion used, according to an alert issued by the U.S. Food and Drug Administration.

Ventura Foods voluntarily initiated the recall of the product, which was sold at Costco, Publix and several other retailers across 27 states, according to the FDA.

None of the 42 locations where the product was sold were in California.

Ventura Foods said it issued the recall after one of its ingredient suppliers recalled a batch of onion granules that the company had used n some of its dressings.

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“Upon receiving notice of the supplier’s recall, we acted with urgency to remove all potentially impacted product from the marketplace. This includes urging our customers, their distributors and retailers to review their inventory, segregate and stop the further sale and distribution of any products subject to the recall,” said company spokesperson Eniko Bolivar-Murphy in an emailed statement. “The safety of our products is and will always be our top priority.”

The FDA issued its initial recall alert in early November. Costco also alerted customers at that time, noting that customers could return the products to stores for a full refund. The affected products had sell-by dates between Oct. 17 and Nov. 9.

The company recalled the following types of salad dressing:

  • Creamy Poblano Avocado Ranch Dressing and Dip
  • Ventura Caesar Dressing
  • Pepper Mill Regal Caesar Dressing
  • Pepper Mill Creamy Caesar Dressing
  • Caesar Dressing served at Costco Service Deli
  • Caesar Dressing served at Costco Food Court
  • Hidden Valley, Buttermilk Ranch
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They graduated from Stanford. Due to AI, they can’t find a job

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They graduated from Stanford. Due to AI, they can’t find a job

A Stanford software engineering degree used to be a golden ticket. Artificial intelligence has devalued it to bronze, recent graduates say.

The elite students are shocked by the lack of job offers as they finish studies at what is often ranked as the top university in America.

When they were freshmen, ChatGPT hadn’t yet been released upon the world. Today, AI can code better than most humans.

Top tech companies just don’t need as many fresh graduates.

“Stanford computer science graduates are struggling to find entry-level jobs” with the most prominent tech brands, said Jan Liphardt, associate professor of bioengineering at Stanford University. “I think that’s crazy.”

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While the rapidly advancing coding capabilities of generative AI have made experienced engineers more productive, they have also hobbled the job prospects of early-career software engineers.

Stanford students describe a suddenly skewed job market, where just a small slice of graduates — those considered “cracked engineers” who already have thick resumes building products and doing research — are getting the few good jobs, leaving everyone else to fight for scraps.

“There’s definitely a very dreary mood on campus,” said a recent computer science graduate who asked not to be named so they could speak freely. “People [who are] job hunting are very stressed out, and it’s very hard for them to actually secure jobs.”

The shake-up is being felt across California colleges, including UC Berkeley, USC and others. The job search has been even tougher for those with less prestigious degrees.

Eylul Akgul graduated last year with a degree in computer science from Loyola Marymount University. She wasn’t getting offers, so she went home to Turkey and got some experience at a startup. In May, she returned to the U.S., and still, she was “ghosted” by hundreds of employers.

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“The industry for programmers is getting very oversaturated,” Akgul said.

The engineers’ most significant competitor is getting stronger by the day. When ChatGPT launched in 2022, it could only code for 30 seconds at a time. Today’s AI agents can code for hours, and do basic programming faster with fewer mistakes.

Data suggests that even though AI startups like OpenAI and Anthropic are hiring many people, it is not offsetting the decline in hiring elsewhere. Employment for specific groups, such as early-career software developers between the ages of 22 and 25 has declined by nearly 20% from its peak in late 2022, according to a Stanford study.

It wasn’t just software engineers, but also customer service and accounting jobs that were highly exposed to competition from AI. The Stanford study estimated that entry-level hiring for AI-exposed jobs declined 13% relative to less-exposed jobs such as nursing.

In the Los Angeles region, another study estimated that close to 200,000 jobs are exposed. Around 40% of tasks done by call center workers, editors and personal finance experts could be automated and done by AI, according to an AI Exposure Index curated by resume builder MyPerfectResume.

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Many tech startups and titans have not been shy about broadcasting that they are cutting back on hiring plans as AI allows them to do more programming with fewer people.

Anthropic Chief Executive Dario Amodei said that 70% to 90% of the code for some products at his company is written by his company’s AI, called Claude. In May, he predicted that AI’s capabilities will increase until close to 50% of all entry-level white-collar jobs might be wiped out in five years.

A common sentiment from hiring managers is that where they previously needed ten engineers, they now only need “two skilled engineers and one of these LLM-based agents,” which can be just as productive, said Nenad Medvidović, a computer science professor at the University of Southern California.

“We don’t need the junior developers anymore,” said Amr Awadallah, CEO of Vectara, a Palo Alto-based AI startup. “The AI now can code better than the average junior developer that comes out of the best schools out there.”

To be sure, AI is still a long way from causing the extinction of software engineers. As AI handles structured, repetitive tasks, human engineers’ jobs are shifting toward oversight.

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Today’s AIs are powerful but “jagged,” meaning they can excel at certain math problems yet still fail basic logic tests and aren’t consistent. One study found that AI tools made experienced developers 19% slower at work, as they spent more time reviewing code and fixing errors.

Students should focus on learning how to manage and check the work of AI as well as getting experience working with it, said John David N. Dionisio, a computer science professor at LMU.

Stanford students say they are arriving at the job market and finding a split in the road; capable AI engineers can find jobs, but basic, old-school computer science jobs are disappearing.

As they hit this surprise speed bump, some students are lowering their standards and joining companies they wouldn’t have considered before. Some are creating their own startups. A large group of frustrated grads are deciding to continue their studies to beef up their resumes and add more skills needed to compete with AI.

“If you look at the enrollment numbers in the past two years, they’ve skyrocketed for people wanting to do a fifth-year master’s,” the Stanford graduate said. “It’s a whole other year, a whole other cycle to do recruiting. I would say, half of my friends are still on campus doing their fifth-year master’s.”

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After four months of searching, LMU graduate Akgul finally landed a technical lead job at a software consultancy in Los Angeles. At her new job, she uses AI coding tools, but she feels like she has to do the work of three developers.

Universities and students will have to rethink their curricula and majors to ensure that their four years of study prepare them for a world with AI.

“That’s been a dramatic reversal from three years ago, when all of my undergraduate mentees found great jobs at the companies around us,” Stanford’s Liphardt said. “That has changed.”

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