When an algorithm tells you how to do your job

Summary

Marketplace Morning Report – Episode Summary

Episode Title: When an algorithm tells you how to do your job
Date: May 22, 2026
Host: Sabri Ben Assure
Main Theme:
This episode focuses on how algorithms and automated systems are changing workplace dynamics – particularly for workers in traditionally hands-on, service-oriented jobs like hotel housekeeping. The show also provides key updates on U.S. economic policy from the Federal Reserve, touching on current inflation, interest rates, and AI regulations.

---

Key Discussion Points & Insights

1. Federal Reserve – Interest Rates and Inflation

[00:56–03:26]

• Economic Backdrop:

  • U.S. inflation remains stubbornly above target, despite earlier expectations of cooling.
  • Federal Reserve officials are now more open to potential interest rate hikes this year to better fight inflation.

• Expert Interview:

  • Guest: Diane Swonk, Chief Economist, KPMG
  • Insight: Inflation's underlying numbers aren't improving enough for the Fed's comfort, meaning consumers continue to be highly conscious of rising prices in everyday purchases.
    • Quote:

      "The underlying inflation numbers are not improving enough to get us back to the Fed's target, let alone what anyone considers price stability."
      — Diane Swonk, [01:40]

  • Challenge: Much of today’s inflation is rooted in energy shocks and persistent supply chain disruptions, compounded by tariffs and pandemic-era issues, making it a more complex problem than typical demand-driven inflation.
    • Quote:

      "It's much more than just an energy shock. It's a supply chain shock that has an echo effect, much like the pandemic. Not as bad, but piling on top of a pandemic induced inflation that we never fully derailed."
      — Diane Swonk, [02:24]

  • Federal Reserve’s Dilemma: Raising interest rates might not directly curb gas prices but is seen as a necessary—if potentially painful—step to stem inflation’s broader effects.
    • Quote:

      "At the end of the day, inflation is like a disease. Over time it can get worse if you don't treat it, even if the cure is painful."
      — Diane Swonk, [03:13]

2. Fed Leadership and AI Policy Developments

[03:28–04:20]

• Fed Leadership:

  • Kevin Warsh assumes his role as Chair of the Federal Reserve, sworn in at the White House—the first such ceremony there in nearly 40 years.

• AI Regulatory News:

  • President Trump drops plans for a new executive order aimed at vetting AI systems for national security risks, citing concerns about stifling U.S. competitiveness versus China.
  • Markets react, with Alphabet (Google parent, Gemini AI) shares falling 7-10%.

3. Algorithms in the Workplace: The Hotel Housekeeper Story

[05:42–08:33]

Automation’s Reach Beyond Robots

• Field Report: Rebecca Plevin, Proof News

• Case Study:

  • Elsa Roldan, housekeeper at a luxury Las Vegas hotel
    • Her workflow and autonomy changed dramatically with the introduction of the "Hotel Service Optimization System" (Hot Sauce), an algorithm-driven scheduling app by Amadeus.

• Worker Experience:

  • Loss of Autonomy:
    • Before the system, housekeepers could choose the cleaning order; now the app dictates their route, often inefficiently.
      • Quote:

        "You have a device like telling you move here, move there, like if you were a robot."
        — Hotel Housekeeper, [06:24]

  • Efficiency vs. Reality:
    • The app increases travel time within the hotel, sometimes adding 20+ minutes per shift just moving between rooms.
      • Quote:

        "We literally can waste more than 20 minutes in the travel time. Elevators are busy. The cart is slow."
        — Hotel Housekeeper, [06:50]

  • Worker Monitoring:
    • Tracks every room's start/finish time. Some workers feel surveilled and pressured to meet strict speed quotas.

• Union Negotiation:

  • In Nevada, the hotel workers' union won a partial restoration of agency:
    • Quote:

      "Yes, we go with the instructions, but also if we see that a room is available to clean, we can do it."
      — Elsa Roldan, [07:21]

  • Only about 10% of U.S. workers are unionized, so most have less protection against algorithmic management.

• Non-Union Challenges:

  • Luce Nunez (Palm Springs housekeeper, non-unionized):
    • Faces strict quotas and close monitoring; skips breaks to keep up, fearing job repercussions.
      • Quote (paraphrased):

        "If you don't change the bed, they give you 20 or 25 minutes, and if you take longer than that, they'll ask you, why did you take so long?" — [07:53]

      • Admits to logging breaks without actually stopping, trying instead to pace herself.

---

Notable Quotes & Memorable Moments

• Diane Swonk on inflation:

  "At the end of the day, inflation is like a disease. Over time it can get worse if you don't treat it, even if the cure is painful."
  — [03:13]

• Hotel housekeeper on algorithm-driven work:

  "You have a device like telling you move here, move there, like if you were a robot."
  — [06:24]

• Union win for worker autonomy:

  "Yes, we go with the instructions, but also if we see that a room is available to clean, we can do it."
  — [07:21]

---

Important Timestamps

• [00:56–03:26] — Fed minutes and analysis with Diane Swonk
• [03:28–04:20] — Warsh’s Fed chairmanship and AI policy news
• [05:42–08:33] — Rebecca Plevin’s field report: algorithms in hotel housekeeping

---

Tone

The episode balances brisk, factual updates on economic news with empathetic, on-the-ground reporting about the impact of technology on workers’ daily lives, reflecting both analytic clarity and genuine concern for everyday challenges.

---

Summary Takeaways

• The fight against inflation is far from over; further rate hikes may be ahead despite the risks.
• Automated systems are fundamentally shifting how service workers—often previously thought “safe” from automation—do their jobs, impacting autonomy and workplace dynamics.
• Unionization helps mitigate negative impacts but remains rare, leading to uneven worker protections as algorithms become more common in traditionally manual roles.

Transcript

[Progressive Boat Insurance Announcer]

Support for this podcast comes from Progressive America's number one boat insurer. We've all made mistakes on the water, but there's one mistake you shouldn't being uninsured. With Progressive Boat Insurance you can choose coverage for most mistakes you or other boaters could make helping you float carefree all season long. Quote Today Progressive Casualty Insurance Company and affiliates number one rating based on 2024 filings with state departments of insurance.

[Odoo Software Announcer]

Running a business is hard enough, so why make it harder with a dozen different apps that don't talk to each other? Introducing Odoo, the only software you'll ever need. It's an all in one fully integrated platform that makes your work easier from CRM, accounting, inventory, e Commerce, and more. And the best part, Odoo replaces multiple expensive platforms for a fraction of the cost. This is why over thousands of businesses have made the switch. So why not you try Odoo for [e-mail] that's o d o o.com as

[Sabri Ben Assure]

if rising gas prices weren't enough, interest rates could be going up too this year. From Marketplace, I'm Sabri Ben Assure in New York. We got the notes from the Federal Reserve's last big interest rate meeting. A lot of folks there think the economy might could need higher interest rates this year to fight inflation. That could be a tough pill to swallow for consumers. Diane Swonk is here to talk about it. She's chief economist at kpmg. Hi Diane.

[Diane Swonk]

Good morning.

[Sabri Ben Assure]

So we got the notes from the Fed's last meeting and it turns out a majority of Fed officials are open to the idea that interest rates might actually have to go up this year at least once. Why is that?

[Diane Swonk]

That's because what we're seeing is the underlying inflation numbers are not improving enough to get us back to the Fed's target, let alone what anyone considers price stability. To everyday consumers out there, it really just means that you're not thinking about trade offs every day because some prices are going up and you need to maximize your budget and make specific trade offs in your grocery cart or in any other car that you're buying. And that's not the case right now. Consumers have prices front of mind and that's the problem for the Federal Reserve.

[Sabri Ben Assure]

Now with normal inflation, you know, you raise interest rates, makes borrowing more expensive, the economy cools down, inflation falls. But this inflation is from higher gas prices and raising rates doesn't make gas cheaper. So why do it?

[Diane Swonk]

That's a good question. And what the problem is is this is more than an energy shock. There is the energy shock that we see first and that really affects consumers. But it's, it's a shock layered on top of other shocks. We've seen everything from tariffs to the pandemic itself, and it's roiling supply chains the world over. All of that is going to show up over time in the overall price of goods and everything we buy, and in services too. So all of these things do show up over time, but it's much more than just an energy shock. It's a supply chain shock that has an echo effect, much like the pandemic. Not as bad, but piling on top of a pandemic induced inflation that we never fully derailed. And whether or not the Fed can single handedly do that with just one rate hike alone is questionable. But at the end of the day, inflation is like a disease. Over time it can get worse if you don't treat it, even if the cure is painful.

[Sabri Ben Assure]

Diane Swonk, chief economist at kpmg. Thank you so much.

[Diane Swonk]

Thank you.

[Sabri Ben Assure]

Kevin Warsh, speaking of the Fed, begins his term as chair of the Federal Reserve today. He's set to take the oath of office at the White House, first time the swearing in has been done there in almost 40 years. And President Trump abruptly canceled plans to sign a new executive order on AI. It would have had the government vet new artificial intelligence systems for national security risks. The President said that in the end, he didn't want to do anything that would hamper the US's lead over China. Shares of Alphabet, owner of Google's Gemini AI, is down 7, 10%.

[Three Day Blinds Announcer]

The Marketplace Morning Report podcast is supported by three Day Blinds. We shop for everything at home now. Why can't we shop for blinds at home too? We can now with three day Blinds. Instead of wandering around a store, three Day Blinds sends a professional design consultant straight to you. They bring all the samples, help you see what actually works in your space, take expert measurements, and even handle the installation. We've all bought something that looked great in store and terrible once we got it home. With three day Blinds, you see everything in your actual light with your actual furniture before you commit. Plus, whether you're at home or away, you can control your window treatments with the three Day Blinds app. So for a free no charge and no obligation consultation, head to threedayblinds.com Morning for our buy one, get one 50% off deal. That's the number 3D a Y blinds.com Morning.

[Assured Guaranty Announcer]

Are you looking to invest in municipal bonds for extra protection? Buy bonds insured by Assured guaranty. It guarantees 100% of your principal and interest will be paid when due. Assured Guaranty has demonstrated its reliability and financial strength for nearly four decades. That's why the bonds they back are one of the safest investments you can make. Visit assuredguaranty.com assured guarantee a stronger bond

[Sabri Ben Assure]

in an economy that is getting more automated, you might think a hotel housekeeper's job would be relatively safe. AI can't make beds or scrub sinks yet. But as Rebecca Pleven of nonprofit Newsroom Proof News reports, some automation is already here for hotel cleaning crews.

[Rebecca Plevin]

Elsa Roldan is a housekeeper at a luxury hotel on the Las Vegas Strip. She used to have near complete control of the order of the room she cleaned. She checked off her progress on a clipboard. That changed in 2019 when her employer rolled out a software called the Hotel Service Optimization System, or Hot Sauce. It uses an algorithm to rank which rooms to clean. Next.

[Hotel Housekeeper (Elsa Roldan or Luce Nunez)]

You have a device like telling you move here, move there, like if you were a robot.

[Rebecca Plevin]

The app is from Spanish tech company Amadeus. In 2021, it said hot sauce was used by more than 70% of global hotel brands in 70 countries. It promises to speed room turnover and boost worker productivity. But Roldan told me the app sent her zigzagging around the massive hotel with her bulky cart.

[Hotel Housekeeper (Elsa Roldan or Luce Nunez)]

We literally can waste more than 20 minutes in the travel time. Elevators are busy. The cart is slow.

[Rebecca Plevin]

It also tracks her progress throughout the day, clocking when she starts and finishes each room. I asked Amadeus about worker dissatisfaction, but no one responded. Roldan is part of a union of 60,000 hotel workers in Nevada. Soon after Hot Sauce was introduced, the union started negotiating more autonomy from the app. In 2022, it won.

[Hotel Housekeeper (Elsa Roldan or Luce Nunez)]

Yes, we go with the instructions, but also if we see that a room is available to clean, we can do it.

[Rebecca Plevin]

Unions are, in many cases using bargaining to establish basic protections against AI and automation in the workplace. But just 10% of the country's workers are union members, resulting in a patchwork of protection. I met housekeeper Luce Nunez at a resort near Palm Springs in California. She said the app makes her job more stressful. She's not represented by a union. She has a daily quota, and managers can use Hot Sauce to monitor her productivity. She says. If you don't change the bed, they give you 20 or 25 minutes, and if you take longer than that, they'll ask you, why did you take so long? Most days, she logs a 10 minute break but keeps working, fearing she won't reach her quota. Instead, she tries to take it a little easier. She says she doesn't sit down or anything. Rather, she works a little slower. Then she picks up her pace again, ready for the algorithm to serve up another room to clean. In Palm Springs, I'm Rebecca Plevin for

[Sabri Ben Assure]

Marketplace, and in New York, I'm Sabri Benishour with the Marketplace Morning Report from APM American Public Media.

[Rima Grace]

I'm Rima Grace, host of the weekly Marketplace podcast. This is Uncomfortable. And this week on the show we're talking about doom spending. You know, that impulse to spend when the future feels uncertain, like maybe I'll never be able to retire or buy a home anyway, so why not book that vacation or buy that fancy gadget? When we ask ourselves, what's the point of saving? We're just going to die or whatever, I think that's the wrong question. I think the more important thing to ask is, is spending that money even actually making you feel better? Be sure to listen to this Is Uncomfortable. Wherever you get your podcasts.