The job market is looking resilient — 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 517,000 jobs in January, obliterating economists’ expectations. There were also over 11 million available positions in December. Read more about the latest jobs news below.
• The Federal Reserve raised interest rates by a quarter of a point, the smallest amount in almost a year. There are signs inflation is slowing, but it still stings.
• Inflation is hitting certain metro areas harder. As of December, the annual inflation rate was climbing fastest in Miami (9.9%), Phoenix (9.5%), Seattle (8.4%) and Atlanta (8.1%). Soaring housing costs are partly responsible — but are expected to cool this year. Mortgages rates just fell below 6% for the first time in months.
• There are about 2 million unfilled jobs at restaurants, bars, hotels and casinos. Many of these workers that were laid off during the pandemic have migrated to office jobs with better benefits, stability and flexibility elsewhere. The pressure to lure service workers back means wages have been 23% higher in the sector over the past three years.
• In-person work is picking up again. According to security firm Kastle Systems, office occupancy just nudged past 50% of its pre-pandemic level in major cities, hitting a milestone.
• The global economic outlook is more positive these days, according to the International Monetary Fund. Its last outlook in October came with a warning about recession risk, but now the IMF expects the global economy to grow 2.9% this year, citing factors like the reopening of China, tight labor markets in countries including the U.S., and easing inflation.
• Gen Z’s reputation for job hopping might be undeserved, new research from the Employee Benefit Research Institute found. Median tenure over the past 40 years has stayed at about five years — and younger workers have consistently had a lower median tenure, which makes sense when comparing time spent in the workforce.

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

The state of the labor market

• The U.S. economy added 517,000 payrolls in January, smashing economists’ expectations even as the Federal Reserve’s rate hikes to curb inflation further slow the economy. A separate labor department report found that job openings surged to a five-month high in December, meaning there are 1.9 openings for every job seeker. “My biggest takeaway is that the U.S. job market is proving to be more resilient and robust than many of us expected 9-12 months ago,” LinkedIn’s Principal Economist Guy Berger commented. Meanwhile, LinkedIn’s data showed that hiring declined slightly in January, but there are still bright spots, with hiring holding steady in the utilities and government administration industries, as well as across Sun Belt metros.?
• There’s “strong momentum in filling job openings and contributing to the lowest unemployment rate we’ve seen since May 1969 at 3.4%,” JPMorgan’s Chief Global Strategist David Kelly commented. “The overall mosaic on the labor market still points to cooling labor demand and wage growth, and some pockets of weakness with increased layoff announcements,” he continued. “However, the labor market is clearly still a bastion of strength in an economy with elevated recession risks,” he said. Even if this growth “proves to be a one-off before we shift back into more moderate gains, we’re pretty far from a recession,” Berger echoed.
• “The Fed isn’t going to be able to stop here,” Mahmood Noorani, an investor, commented. Kelly agreed: “Labor market tightness may give them confidence to keep policy tighter for longer.” The Fed raised interest rates by a quarter of a point on Wednesday, the smallest amount in almost a year. The next key inflation report is due next week.

The state of the C-suite

• C-suite hiring trends have been changing. According to a new analysis from LinkedIn’s Economic Graph, four C-suite titles have seen hiring growth of more than 100% since 2019. They are: chief diversity and inclusion officer (+168.9%), chief delivery officer (+165.6%), chief people officer (+144.3%) and chief growth officer (+117.5%).
• Last year’s fastest-growing C-suite titles were chief growth officers and chief people officers — opportunities for chief diversity officers, notably, did not keep growing despite strong growth in 2020 and 2021. Hiring for the role declined 4.51% in 2022. Gena Cox, an executive coach, commented this matches what she is seeing in the executive landscape. “The truth is much of the CDO hiring in the last two years has been ad hoc and unsupported by a cohesive strategy from the top,” she said. “If this relative decline means organizations are being more thoughtful, it may be a good thing.”
• While some professionals commented that these roles make the C-suite more accessible and employee-focused, others weren’t sold. Strategist and brand marketer One Luv Hull commented that the rise of some of these roles show how easy it is for companies to “get caught up in trends and marketing,” ultimately hindering sustainable growth and operations because of “PR moves.”

The state of the side-hustle economy

• High inflation and a confusing job market mean that most are looking to moonlight. Around 44% of Americans now have a side hustle for extra income. That’s up 13% from 2020, according to a recent study from LendingTree.
• Gen Zers (62%) and millennials (52%) are the most likely to take on a side gig to offset inflation. The skills helping the average hustler take home close to $6,000 a year? Writing, researching and programming. HR professional Juwariah Fatimah commented that most side hustles also help you “think outside the box” to develop more intangible skills like grit and perseverance.?
• Todd Kunsman, a marketing professional, commented that a side hustle is a way to keep you competitive in the job marketplace. It can be particularly helpful to have something “to fall back on during a layoff,” he said. And with nearly 2 jobs open for every job seeker, a side hustle can provide you with the time and financial cushion you need to make the right decision for your career: “My side hustles have always taught me more and allowed me to test things before applying to a full-time job,” Kunsman continued.

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

• Tuesday, February 7: The U.S. Department of Commerce will report the U.S. dollar amount of U.S. exports and imports.?
• Wednesday, February 8: LinkedIn Senior Editor at Large George Anders will release his latest edition of Workforce Insights, digging into how remote work is faring compared to hybrid and onsite work.
• Thursday, February 9: The U.S. Department of Labor 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, February 10: The University of Michigan will release February’s Consumer Sentiment Index, which measures how Americans feel about current and future economic conditions.