Government Shutdown Ends After 40 Days: MIT Study Reveals 95% of AI Investments Failed

BOTTOM LINE UP FRONT

History happened while you slept. 10:49 PM Sunday night. Senate voted 60-40 to end the longest government shutdown in American history. Day 40. 1.4 million workers getting back pay. Every single dollar.

But here's the story CNBC, Bloomberg, Fox Business won't tell you: Companies that laid off workers to replace them with AI are quietly bringing those workers back. 5.3% of laid-off employees being rehired right now. Highest rehiring rate in seven years.

MIT study: 95% of companies that invested in AI saw no financial gains. For every $1 they thought they'd save, they spent $1.27. Oxford researchers confirmed it: "Some companies are using AI as a scapegoat for layoffs."

Meanwhile Marcus Thompson, 41, Charlotte: Got certifications while others panicked. Thursday (three days): Final round VP interview, in-person. Did the work we talk about every morning.

Government shutdown ending. AI failed. Companies backtracking. 153,000 laid off in October. But opportunity exists for those who position strategically.

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Every morning: government shutdown updates, tech layoffs, hiring opportunities, certification deadlines. Comet pulls it together. Then I connect dots nobody else sees.

SHUTDOWN ENDING: THE NUMBERS

10:49 PM Sunday: Senate voted 60-40 after 14 failed votes over 40 days. Eight Democrats broke ranks (none face 2026 reelection). Bernie Sanders and Chuck Schumer voted no to protect themselves politically.

What's in the deal:
• Funds government through January 30, 2026
• 1.4M workers get back pay (750K furloughed + 700K essential worked without pay)
• SNAP benefits funded through September (42M Americans safe)
• No more mass layoffs until January 30
• But: ACA subsidies expire January 1 (20M Americans affected, premiums jump 114%)

Democrats held line 40 days. Sunday night: folded. Got promise of vote on subsidies. Not guarantee. Just promise.

Trump quote Sunday night: "Looks like we're getting very close to shutdown ending." Didn't say he'd sign it. But didn't threaten veto either.

THE AI LIE NOBODY'S COVERING

Visor (workplace analytics) data from November 7: 5.3% of laid-off workers being rehired by former employers. Highest rate since 2018.

Why? The AI didn't work.

MIT study: 95% of companies replacing workers with AI saw zero financial gains. Here's the math:
• Save $500K firing 10 workers at $50K each
• Pay $250K in severance
• Lose $100K in productivity (nobody knows how things work)
• Spend $50K training remaining staff on AI
• Pay $200K annually for AI systems
• Six months later: AI can't handle complex situations
• Rehire at $65K each (was $50K) plus recruiting fees
• Total: Spent $1.27 for every $1 saved. Losing $0.27 per dollar.

Oxford researcher Fabian Stephany: "Some companies are using AI as a scapegoat for layoffs." Translation: They wanted cost cuts anyway. Blamed AI so you wouldn't be mad.

Real examples:
• Salesforce: Cut support 9,000→5,000. CEO said "I need fewer heads." Now quietly rehiring because angry customers demand humans.
• Amazon: Cut 14,000 (maybe 30,000). Already rehiring specialized roles because cut too deep.
• UPS: Eliminated 48,000 jobs. Stock down. Complaints up. Quietly rehiring experienced drivers in major metros.

October 2025: 153,074 layoffs announced. Highest October in 22 years. AI cited for 31,039 cuts.

THREE JOB SEARCH LESSONS

Wrong Way: Elizabeth Davies, 59
500 applications in one year. Every first interview: "You're exactly what we're looking for." Then crickets. All 500 times. Recruiter asked: "Have you thought about coloring your hair?"

Why it doesn't work: Applications succeed 3% of time. 500 applications = 15 interviews. All ghosted.

Right Way: Alan Stain Strategy
Former Facebook/Google/Salesforce exec, now CEO Cadma Careers. His advice published today in Business Insider:

"If your return is 3%, spend 3% of your time applying to jobs."

Spend other 97% networking. Five Chat Rule: Five conversations per week with people at target companies. Not asking for jobs. Building genuine connections. Learning about their work, challenges, what keeps them up at night.

Aaron Cleavager (executive search): "If they have positive view of you after conversation, they're going to think of you anyway. You don't need to ask for a job."

Why it works: 260 conversations over year vs 500 applications into void. Even if 10% lead somewhere, that's 26 warm opportunities. Better odds. Better roles.

If You Get Laid Off: Pav Stokovic Playbook
Former chief people officer who laid off hundreds shares insider knowledge (Business Insider, Nov 9):
• Don't sign immediately - Take documents home, review carefully
• Negotiate - You have leverage. Ask for 50% Cobra coverage 3-6 months
• Get your employee file - Proves layoff wasn't performance-related
• Apply for unemployment - Put ego aside. You paid into it. It's your money.
• Get back out there - Few days off, then network. 153K laid off in October alone. You're in massive company.

WHERE JOBS ARE BEING CREATED

940 manufacturing jobs announced last five days:
• Vertiv (Virginia): 250 jobs immediately→500 by 2030. Making AI data center equipment. $5.2M investment.
• Orbis (Texas): 190 jobs within three years. Reusable packaging for logistics. Advanced automation.
• Applied Opto (Texas): Making data center components. Sugar Land facility.

Not warehouse jobs. Skilled manufacturing. Good pay. Benefits. Room to grow.

Also Wednesday: Minimum wage increases first time since 2009. $7.25→$9.50-$10.50 depending on jurisdiction (31-45% increase). Affects 9M Americans.

SKILLS BEAT DEGREES NOW

• 85% employers using skills-based hiring (up from 81%)
• 53% dropped degree requirements
• 94% say skills-based hires outperform degree-based
• 90% report fewer hiring mistakes with skills-based
• Computer science degree unemployment: 6.1% (worse than philosophy majors)
• AI engineer salaries: $106K-$289K

What you can do matters more than where you went to school.

FREE CERTIFICATIONS (LIMITED TIME)

• Microsoft Fabric Data Days: Ends November 25 (15 days). Free DP-600, DP-700 vouchers. 50% off DP-900, PL-300.
• AWS Generative AI Developer: Beta registration opens November 18 (next Monday). Early adopter badge.
• North Carolina residents: Free Coursera access through November 30.

MARCUS: THREE DAYS OUT

Marcus Thompson, 41, Charlotte. Real member of this community.

Got laid off. Could've sent 500 applications like Elizabeth. Didn't.

Got Oracle certifications (July-October free program). Took all five. Networked with purpose. Targeted companies using Oracle. Built relationships. Posted about learning on LinkedIn.

Thursday, November 13 (three days): Final round VP interview, Bank of America. In-person.

Monday-Wednesday: Deep research on VP. Final mock interviews. 30-60-90 day plan rehearsed. Outfit laid out. Route planned. Zero decisions left for Thursday.

Not interviewing for job. Ready to lead day one.

We'll have Marcus on the show. Strategy over panic. Intelligence over emotion.

YOUR WEEK 3 ACTION PLAN

Today (Monday):
• Polish LinkedIn (skills, certifications, projects)
• Sign up Microsoft Fabric Days (15 days left)

This week:
• Have first conversation with someone at target company
• Post on LinkedIn (even just comment on someone else's post)
• When someone views your profile, reach out: "Hey, how are things in your world?"
• Mark calendar: November 18 - AWS Generative AI registration opens

YOUR MOVE

Day 40. Shutdown ending. 1.4M getting paid.

But: MIT proves 95% AI investments failed. Companies losing $1.27 per dollar. 5.3% rehired because it didn't work.

Elizabeth: 500 apps, wrong way. Alan Stain: 5 conversations/week, right way. Pav: negotiate if it happens to you.

Manufacturing hiring 940. Minimum wage rising Wednesday. Free certs available 15 days.

Marcus: 3 days from VP interview. Certifications. Strategic positioning. Proof of skills.

85% skills-based hiring. 94% skills beat degrees. 53% no degree requirement.

Most people will panic, scroll, do nothing.

You're not most people.

— Antoine Ward, Founder NextGen Heights

P.S. Marcus's complete playbook? Word-for-word networking scripts, negotiation templates, certification strategy at patreon.com/blackheights - VP meeting in 3 days.

Learn more: nxtgenheights.com | Microsoft Fabric | AWS AI Cert