The job market is holding tight — and other happenings in the world of work

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Catch up on headlines from the last 7 days.

• The U.S. economy added 528,000 jobs in July, smashing economists’ expectations. Meanwhile, the unemployment rate dropped to 3.5%. The positive report could mean more aggressive interest rate hikes from the Federal Reserve. Read more about what’s going on with the job market in the next section.
• Demand for workers started to fall from historic highs in June, along with the pace at which workers are quitting their jobs. Even still, job openings are almost double the number of unemployed Americans looking for work. This comes from the Job Openings and Labor Turnover Survey, which measures job vacancies, while the jobs report mentioned above measures added payrolls.
• Americans are racking up more debt to deal with rising costs. Credit card debt jumped 13% last quarter from the same time last year to $46 billion.
• Most CEOs think a recession is coming, according to a new Conference Board survey. Execs are preparing for an economic downturn by cutting back on work dinners, business trips, free swag and more.
• Employees are still working from home in bigger cities with more competitive job markets like New York and San Francisco, according to new research. In smaller cities, most have returned to the office full-time.
• Higher mortgage rates are starting to curb buyer demand in the real estate market, but a housing shortage is likely to keep pushing prices up.
• It’s the “summer of sharing.” More and more people are combating inflation by renting the lifestyle they want instead of buying it. Airbnb bookings are up, as is demand for pool sharing and boat rentals.

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

What's going on with the job market?

• The U.S. economy added a shocking 528,000 jobs in July, more than double the anticipated number. And that wasn’t the only unexpected data point from Friday’s jobs report. The unemployment rate fell to 3.5% — matching a 50-year low set just before the pandemic. Wage growth also ticked up to 5.2% from 5.1% in June. The report marked the 19th consecutive month of payroll growth and showed that the U.S. has recovered pre-pandemic employment levels.
• Experts say the positive report likely pushes the Fed to continue hiking interest rates. The “powerhouse” report “puts pressure on the Fed to keep fighting elevated inflation and likely reduces the chance of a ‘pivot’ to more accommodative monetary policy anytime soon,” Nuveen’s Chief Investment Officer Saira Malik said. Economist Jason Schenker said to keep an eye out for Wednesday’s Consumer Price Index. “If inflation remains high and job gains remain strong, the Fed could raise rates by more” than anticipated, he continued. The last two interest rate increases were by three-quarters of a percentage point. The Fed is expected to hike rates again in September, but there will be two Consumer Price Index readings and one jobs report before then.
• This is “not at all like a picture of an economy teetering on the edge of recession, if not already in one,” Malik said of the jobs report. “Even though this month was strong, there are warning signs flashing,” Schenker said. He called the jobs report a “blowout,” but he isn’t so confident that future reports will be as strong due to a spike in layoff announcements and falling job openings.
• Meanwhile, a separate LinkedIn Economic Graph analysis found that hiring fell by 1.5% in July compared to June. This suggests that macroeconomic headwinds (like persistent inflation and the tightening of financial conditions to combat it) are “cooling off what has been a hot labor market since last summer,” LinkedIn’s Senior Economist Kory Kantenga said. The overall picture, however, is that it’s still a solid job market for jobseekers. “Jobseekers are starting to look for jobs with more intensity,” LinkedIn’s Chief Economist Karin Kimbrough said. “There’s no question that employers are still hiring… but there’s less momentum,” she continued. “It’s going to be a fairly solid labor market for a while, but eventually we are going to see a bit of a tougher time later in the year or early next year.”
• According to the new LinkedIn data, the industries currently hiring at pre-pandemic levels were Technology, Information and Media (2.6% higher) and Administrative and Support Services (3.3%). The salaries of workers in the latter industry could be soaring — anecdotally, in this tight labor market, an executive assistant job could pay upwards of $400,000. The Sun Belt is also holding up amid slower hiring. The metro areas with the strongest hiring rates relative to pre-pandemic levels were Miami (5% higher), Phoenix (3.6% higher), Houston (1.5% higher) and Dallas (1.4% higher).

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

• Wednesday, August 10: The Bureau of Labor Statistics will release the monthly Consumer Price Index, which measures inflation through the price of goods and services.
• Wednesday, August 10: LinkedIn Senior Editor at Large George Anders will release his latest edition of Workforce Insights, digging into how Americans feel about pay transparency at different seniority levels.
• Thursday, August 11: The monthly Producer Price Index will be released. Different from the Consumer Price Index, it measures inflation based on costs to those who make products, not those who consume them.
• Thursday, August 11: 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.
• Friday, August 12: The University of Michigan will release its monthly Consumer Sentiment Index, which measures consumer confidence levels and Americans’ perception of their financial situation.