The job outlook for 2023

Hello! And welcome to the CNBC Work It newsletter about all things work – from landing the job to succeeding in your career. This week, we’re taking a look at the job outlook for 2023. And I just have one question: What the heck is “quiet hiring ?” ??

The sheer number of terms being thrown around to describe what’s happening in the job market has been dizzying ?? – from The Great Resignation to “quiet quitting,” “loud layoffs” and now “quiet hiring.” (I’ll explain that later.)

First, the good news: The labor market is still strong, with a record low unemployment rate of 3.5% , according to the latest jobs report. And, while layoffs are still happening, they have been mostly isolated to tech , crypto, finance, retail and a few other sectors; overall, the number of layoffs is still historically low.

Just to put it in perspective: The technology industry saw a 649% jump in job cuts in 2022, while overall the increase in job cuts was just 13%, according to stats from Challenger, Gray & Christmas.

But, hiring has slowed.

“The overall economy is still creating jobs, though employers appear to be actively planning for a downturn,” Andrew Challenger, senior vice president of the outplacement firm said in a statement when the layoff report was released. “Hiring has slowed as companies take a cautious approach entering 2023.”

Why are companies laying off workers? The obvious reason is that they are worried about the economy and want to head into uncertain times running a lean ship. But then there are rising interest rates. Sectors that are sensitive to interest rates (like finance) or dependent on borrowing for growth (like tech) really take a hit. And then there’s this whole tectonic shift happening, where companies are increasingly calling workers back to the office (Hello, Disney ). There were companies — mostly technology — that were really thriving on the remote work model while we were home in our pajamas. Those companies have to pivot and figure out realistically what their growth prospects are now … while I try to figure out if I have any work pants that still fit. ??

So, does that mean you shouldn’t apply for a job at a tech company? No. But, it means you just need to be aware – and prepared.

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Where the jobs are

The latest jobs report showed the U.S. economy continued to add jobs at a healthy pace – 223,000 jobs were added last month.

The biggest gains were in sectors hard hit by the pandemic – health care and social services, and leisure and hospitality . Construction rounded out the top three.

“Health care has recovered to its pre-pandemic levels, but nowhere near its pre-pandemic trend, and hospitality is still not back to its pre-pandemic levels,” Julia Pollak, chief economist at ZipRecruiter, told CNBC.

Pollak said both of those sectors have great prospects for long-term growth and that, thanks to consumer demand amid rising interest rates, blue-collar workers probably have greater job security than their white-collar counterparts.

If you’re trying to figure out what types of jobs you might apply for in those sectors or generally what jobs have the best long-term prospects, U.S. News and World Report recently released their ranking of the 100 best jobs in America. Not surprisingly, many of them are in health care and tech. And, the good news – many pay over $100,000.

Click here for the full list .

Want a raise in 2023?

The price of everything from butter ?? to pants ?? has soared in the past year, so it’s no surprise that a lot of us would like more money this year. ??

The reality is, with a potential recession looming, it’s not a great time to just stroll into your boss’s office and ask for a raise because you’re worth it. (You are, btw.)

Timing is everything.

Experts say the best way to climb the pay ladder in this environment is to apply for a new job .

Job switchers saw an average 7.7% pay bump, while those who stayed at their jobs got a 5.5% increase, noted Daniel Zhao, the lead economist at Glassdoor, citing data from the Atlanta Federal Reserve.

The only thing to remember there: You lose your job security when you start a new job. You might be susceptible to that old adage – last in, first out. It may still be worth it to you but you just have to be mindful of that risk.

And, you might want to do it sooner rather than later.

“Today is better than it’s going to be six months from now,” Andy Challenger, senior vice president at Challenger, Gray & Christmas, told CNBC. “So I would try to make your moves as soon as possible.”

Still want to work in your pajamas?

Despite the fact that a lot of companies are asking employees to put on real pants and return to the office, you can still find remote jobs if you want to. ??

The number of remote job listings jumped 20% in 2022 from a year earlier, according to FlexJobs, a membership service for jobseekers. And, these listings span a lot of sectors, including marketing, accounting, finance, HR and recruiting.

?Here’s a look at the top 5 companies hiring for remote jobs in 2023.

Click here for the full list . ??

Seriously, what is ‘quiet hiring?’

One term that HR experts say will be at play amid all of the economic uncertainty in 2023: quiet hiring .

Contrary to what it sounds like, quiet hiring isn't where a company tries to sneak you in the back door without anyone noticing.

Quiet hiring is when an organization addresses some core needs without actually hiring full-time employees, Emily Rose McRae, who leads Gartner’s future of work research team, told CNBC Make It.

That could mean having existing employees take on additional work or move into other roles within the organization, or hiring short-term contractors.

One way you can try to get ahead of a layoff is to ask your boss what the current priorities of the organization are and if there’s anything you can take on, or new skills you can acquire to help meet those needs. Helping your boss and your company out in tough times and acquiring new skills is a great move that could help you get a promotion – when the company is doing better. At the very least, you have new skills to take to your next job.

But, be smart about it.

“This is a really good chance for employees to sit down and say to their managers, their HR people and to the company as a whole, ‘Yeah, I’m willing to do this. Let’s talk about what this means for my career,’” McRae said.

Good luck out there! It's going to be a tough year, but you've got this. ??

More from CNBC:

? Will career trends that created a buzz in 2022 continue in the new year?

? The best places to find ‘simple, no-BS’ resume templates ?

? The 10 best places to work in the U.S. ?

? How to deal with anxiety during the job search, according to a psychiatrist: ‘Our brains don’t like uncertainty’

? The 8 ‘rarest’ types of employees—they ‘simply outperform everyone else,’ says career expert

This newsletter was written by?Cindy Perman . If you loved — or even mildly liked — this advice from CNBC,?sign up for our newsletters . There’s something for everyone: breaking news, Jim Cramer’s Investing Club, Make It, Your Wealth, Invest in You: Money 101 – and much more!