Inflation is bumming us out — and other economic happenings

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Catch up on headlines from the last 7 days.

• Inflation hit yet another 40-year high last week, jumping 8.6% from a year ago, startling economists and ramping up pressure on the Federal Reserve to keep hiking interest rates.?
• Gas prices just reached a milestone. The national average for a gallon of gasoline reached $5 for the first time ever, according to AAA.?
• Mortgage demand is dropping. Soaring interest rates and dwindling housing supply are spooking potential homebuyers while pushing mortgage applications down to their lowest level in 22 years. The best path to homeownership right now? A loan from the bank of mom and dad.
• The pay gap between executives and average workers seems wide as ever. A recent report from the Institute for Policy Studies found that the typical CEO earned $10.6 million in 2021 , while the average worker wage was just $23,968. That’s a $670 to $1 ratio.?
• Global economic growth is expected to slow this year, according to the World Bank. Among advanced economies, including the U.S., growth is now forecast to slow to 2.5% in 2022. The war in Ukraine, continued supply-chain disruptions and the risk of stagflation are all contributing factors.
• Is a tech slump on the horizon? Tales of layoffs, hiring freezes and rescinded job offers keep coming from the sector as venture capital-backed firms abandon risky bets. In the first nine days of June alone, at least 30 tech companies announced staff cuts.
• Job hoppers are leaving behind extra work for ex-coworkers. A new survey found that a shocking 83% of global workers reported taking on up to six new tasks outside of their job description due to coworkers leaving. Meanwhile the Great Reshuffle shows few signs of letting up .

Take a closer look at recent trending topics — and engage with meaningful conversations happening on LinkedIn.

What’s the deal with inflation??

• Inflation hit another 40-year high last week, with everything from gasoline to lawn care costing more green. Most Americans aren’t confident in the economy because of it. Peter Atwater, an economics professor at William & Mary, said that consumer sentiment tumbling could cause many to pull back on spending, potentially leading to a recession.?
• Household net worth took a dip for the first time since the pandemic shut down the economy in 2020. Americans are weathering inflation’s effects by spending more time searching for cheaper alternatives, cutting back on unnecessary spending, putting off big purchases and skimping on setting money aside for savings.
• According to a recent survey, just 39% of baby boomers are feeling okay about their household finances this year. Even still, there is some optimism: 70% of millennials and 66% of Gen Z are feeling good about their household finances in the next 12 months. But those are the same age groups skipping out on continuing education to join the workforce for financial reasons.
• “With the latest data releases, we’re assessing the sobering combination of still historically high inflation and the downbeat consumer mood,” Bankrate’s economist Mark Hamrick said . “It remains to be seen whether we experience another recession in the next year or immediate terms,” he continued. The last time Bankrate surveyed economists on the risk of recession, they put the chances at 1-in-3 over the next year. Hamrick predicts those risks have “likely grown” and that the Fed will take “an aggressive approach with interest rate hikes.”

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How's the job market looking for career starters?

• The job market is looking “much brighter” for younger workers than it did two years ago, as more and more companies seek to bring on fresh, new talent. Hiring rates for those with less than four years of experience rebounded in 2021, surging by 15% year-over-year, according to recent LinkedIn data. ?
• Even in the midst of economic uncertainty, “it’s still a great time to be looking” for a job, LinkedIn’s Chief Economist Karin Kimbrough said. Workers are “still largely in the driver’s seat to demand more when it comes to flexibility, salary and other benefits,” because the labor market is still historically tight.
• “Many young professionals are often thinking first and foremost about how to market their existing skills,” Kimbrough said. “And while that will always be a necessary tactic in landing a role, what’s becoming increasingly important is also being able to communicate a willingness to adapt and learn new skills along the way,” she continued. If you’re looking to branch out beyond your existing skills, the industries with the most opportunities for career starters are HR, hospitality and health care.

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Where's everyone moving these days?

• The fastest growing cities for entry level roles, according to recent LinkedIn data , include: Austin, Chattanooga, Raleigh and Charlotte. These southern cities attract younger workers with more affordable costs of living and more opportunities to work remotely — remember, more than half of job applications on LinkedIn are for remote roles.
• The Sun Belt isn’t just hot for younger workers. Tech talent has been steadily growing in the region for years, per separate LinkedIn data. The top 15 cities for tech talent include three Florida hubs, three more in North Carolina, two in Tennessee and two in Texas.
• “It makes sense that lower tax areas are drawing talent,” Florida-based consultant Thomas Sheridan commented , alluding to states like Florida and Tennessee not having a personal income tax, making salaries go further in the Sun Belt. Anca Puiu, an HR professional, offered a more all-encompassing reason for the newfound “geographical spread of talent:” The pandemic pushed “the rise of remote work, democratization of learning, cost of living, and search for a better quality of life,” she said.

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• Tuesday, June 14: The monthly Producer Price Index will be released. Different from last week’s Consumer Price Index, it measures inflation based on costs to those who make products, versus those who consume them.
• Wednesday, June 15: The Census Bureau will release its monthly retail sales report. The report is an indicator of consumer spending and general economic activity.
• Wednesday, June 15: Federal Reserve Chair Jerome Powell is expected to speak following the central bank’s two-day meeting. The Fed is widely expected to raise interest rates.
• Wednesday, June 15: LinkedIn Senior Editor at Large George Anders will release his latest edition of Workforce Insights , covering recent survey data on how many professionals would take a pay cut for certain benefits like a better work/life balance or a greater sense of fulfillment.
• Thursday, June 16: The Labor Department will release initial jobless claims for the previous week. The report, a proxy for layoffs, tracks the number of people filing for unemployment benefits.