Inflation is soaring — and other economic happenings

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Catch up on headlines from the last 7 days.

• Inflation is white hot, but consumer spending is up anyway. The value of overall purchases climbed 1% from May to June, even as prices jumped 9.1% year-over-year.
• Commuting feels more expensive than ever, likely hobbling return-to-office efforts. Gas and insurance prices have jumped 35% from a year ago, according to a new report. Cities seeing average commuter costs surge the most include Pittsburgh, Philadelphia and Cincinnati.?
• The gender pay gap likely won’t close for another 132 years, according to the World Economic Forum. The report also found that women hold less than a third of leadership positions globally but are starting their own businesses at a faster rate than men.
• The pandemic came for the power lunch. Online reservation service OpenTable said that $50-plus lunches have fallen since 2020 by as much as 50% in major U.S. cities including Chicago, New York City and Washington, D.C.?
• State and local governments are facing staffing shortages. There were more than 900,000 public sector job openings nationwide in May. In New York City, the government job vacancy rate is now 7.7%, up from 1.5% at the start of the pandemic, with ex-employees citing low pay and return-to-office expectations as key drivers.
• Americans are tuning out. Engagement with news across every platform has dropped dramatically this year, with social media interactions with news articles taking the biggest hit.

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

How is inflation looking?

• Consumer prices jumped 9.1% year-over-year in June, the biggest annual increase in almost 41 years. Meanwhile, retail sales climbed 1% from May to June, likely pointing to “higher prices rather than an uptick in spending because the data isn’t adjusted for inflation,” as Bloomberg reporter Olivia Rockeman commented. The latest figures reinforce expectations that the Federal Reserve will hike interest rates even higher later this month.
• While many companies are planning on offering raises to combat price increases, a new survey found that likely won’t be enough. Consultancy Towers Watson surveyed 1,400 firms and found that raises, on average, will hover around 4.1% in 2023.?
• Gas, food and shelter is where Americans are feeling inflation’s pinch. “The most affected are low-income renters with little or poor credit and retired households that are seeing the value of their retirement assets deteriorate,” economist Orphe Divounguy commented.
• For those that aren’t in dire situations, personal finance expert Sharon Epperson recommends “focusing on what you can control.” In her case, that means canceling a yoga class subscription and two additional recurring expenses, ultimately cutting her costs for August by $135 “with just a few clicks and calls.” While it’s “just a sliver” of her monthly expenses, the intentionality is easing her anxiety.?

Is everyone taking PTO right now?

• Inflation ticking ever higher is making road trips feel ultra-expensive due to gas prices and flying feel chaotic — but Americans are packing up for vacation anyway. Two years of pent-up YOLO and FOMO are adding up to a big rush on PTO . More than 87% of Americans have summer vacation plans according to a recent survey — and Airbnb reported summer bookings are 30% higher than they were pre-pandemic.
• Employers are struggling to juggle overlapping vacation requests, leading to delayed project timelines and cash incentives to keep staff from being out-of-office during peak times, Fast Company reported.
• Copywriter Michelle Kaplan commented that the time off is deserved — and questioned who is taking “a real vacation,” where emails go unread and work goes untouched, anway. “The last time I remember doing that was as a telephone operator in the 90s,” she said. “Only because once you literally unplugged, you didn’t have to think about it until the next time you plugged in,” she explained. “Now I fear we’re always a little plugged in.” That view toward work is distinctly American, urban planner Cathi Wielgus argued. “Somehow the entire country of France manages to get along just fine for the entire month of August which is traditionally a vacation month,” she said.

How are generational differences impacting the workplace?

• The oldest and youngest members of the workforce have differing views on pay transparency , according to LinkedIn’s latest Workforce Confidence Index. About 81% of Gen Z views sharing their pay information as a step toward equity at work, while only 28% of baby boomers agree. (Millennials side with Gen Z at 75% while Gen X falls in the middle at 47%).?
• Kaitlyn Rhodes, a young pharmacy professional, commented that her older coworkers bristle when she tries to talk pay. “I’m not sure if they think it’s unprofessional or stirring the pot, but I do it in hopes they share their salary so we all know how fairly we are getting paid,” she said. “Team members with the company 10+ years only making 5-10% more than me as a new hire makes me rethink how long I might stay,” she continued, noting that salaries are a surefire way to assess how a company values its employees.?
• Even though there’s a clear generational divide when it comes to potentially taboo topics, Gen Z still wants the opportunity to be mentored by boomers. A recent survey found that 40% of Gen Z say they miss networking opportunities while they work from home. Less than a quarter of 20-somethings want to work remotely all the time , compared with 41% of workers in their 50s and 60s.

Get ready for the week by seeing what’s coming up.

• Tuesday, July 19: The Census Bureau will release the annualized number of new construction single-family homes sold in June. It’s expected to be a lower number than May.
• Wednesday, July 20: The National Association of Realtors will release the annualized number of existing homes that were sold in June. It’s also expected to be a lower number than May. The report is an indicator of housing market strength and typically highly correlated with the existing homes report.
• Wednesday, July 20: LinkedIn Senior Editor at Large George Anders will release his latest edition of Workforce Insights , digging into the creator economy.
• Thursday, July 21: 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.