Labor market growth keeps beating expectations — and other happenings in the world of work

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Catch up on the last 7 days.

• The U.S. added 263,000 jobs in November, defying economists’ expectations that the Federal Reserve’s interest hikes would finally slow the labor market. Read more about this below.
• Fewer Americans are quitting their jobs, according to the Labor Department’s Job Openings and Labor Turnover Survey . The quits rate fell to the lowest level in 17 months — 2.6%.?
• Tech’s high-profile layoffs are spilling into the media industry. Newspaper publisher Gannett, CNN and The Washington Post all announced job cuts last week.?
• Deal-hungry shoppers showed up in a big way last week. A record 196.7 million Americans shopped online between Thanksgiving Day and Cyber Monday, spending an average of $325 each. It could point to many racking up credit card debt.?
• Inflation cooled in October, according to the Federal Reserve’s favorite gauge. Price increases slowed to an annual rate of 6% from 6.3% in September and personal spending rose. More inflation data is due out this week and next.
• Houses are probably going to get cheaper soon, according to experts . After nine months of falling sales, prices are expected to come down in 2023 thanks to an increase in supply and high interest rates.
• Gas prices have fallen to their lowest level since Russia invaded Ukraine. A gallon of regular gasoline now costs an average of $3.47 nationally, according to AAA. Experts expect gas prices to keep dropping.
• Cheap dates are in. Even though there are signs that inflation is starting to ease up, most Americans are rethinking their dating strategies . Instead of meeting up for drinks or dinner, almost half of millennials and Gen Zers are opting to go for walks, coffee or cooking at home for a first or second date.
• There are more stay-at-home dads now than there used to be. A Pew Research Center analysis puts the number at 2.1 million in 2021 — that’s an increase of eight percentage points since 1989. Evolving societal norms and post-pandemic caregiving costs play into the shift.

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

The latest labor market data sends mixed signals

• The U.S. economy added 263,000 payrolls in November, beating expectations and suggesting that the Federal Reserve’s steep interest rate hikes haven’t managed to slow the labor market yet. The report also surprisingly showed an increase in average hourly earnings. Friday’s labor market report likely dampens investor hopes that the Fed will moderate hikes as soon as its mid-December meeting.
• Separately, the Labor Department’s Job Openings and Labor Turnover Survey , out earlier last week, showed that the number of available positions fell to 10.3 million from 10.7 million in September. The quits rate also fell to the lowest level in 17 months as fewer Americans voluntarily left their jobs amid economic uncertainty.?
• “We’re just going to have to wait for more data and future revisions,” LinkedIn’s Principal Economist Guy Berger said . While the labor market has slowed since the spring and doesn’t appear to be in a recession, the degree of slowing is still unclear, he continued. Meanwhile, LinkedIn’ latest data showed that hiring across the U.S. fell 4.9% in November from October. It marked the third straight monthly decline and likely signals the start of a “meaningful” slowdown in hiring, Berger said. “Overall, we continue to see a gradual deceleration in the labor market, disproportionately felt by office workers,” Kory Kantenga , a senior economist at LinkedIn, said . Bankrate's economic analyst Mark Hamrick commented while there’s “no sign of recession here,” that doesn’t eliminate the potential for one in 2023.

Confidence wanes in certain industries

• While the job market seems to still be holding strong, confidence among U.S. workers doesn’t seem to be. Optimism saw steady decline this year, according to LinkedIn’s Workforce Confidence Index survey , which measures how professionals feel about their job security and finances. It started the year at a +41 (on a scale of -100 to +100) and is nearing the end at +36.?
• Certain industries, however, tell a gloomier story than the U.S. average. The workforce mood was bright in tech, information and media at the outset of the year. Finance, too. At the time, these sectors were hiring quickly and pumping up pay — but it’s a different story today between sizable layoffs and economic uncertainty. By contrast, other sectors, such as healthcare and professional services, are holding steady.
• “I truly believe that confidence comes from the company you are with,” operations professional Alexander Moore commented . For business leaders looking to instill more confidence in workers amid a tumultuous time, Moore recommended focusing on being transparent about business goals, being supportive of workers at all levels and fostering an inclusive environment “versus a tribal one.” For individuals looking for a little hope, career strategist Bernadette Pawlik, added that it’s important to remember that everything is cyclical. “If you’ve had a business career, you know what booms will bust,” she commented. “What goes up, will go down,” and the cycle will reset.

The 4-day workweek could work

• The early results of a 6-month long 4-day workweek trial run at 33 companies in the U.S. and Ireland are in. It turns out that shrinking workers’ hours without cutting their pay could lead to better business outcomes.
• The participating companies reported an average revenue increase of 8%, a decrease in absentee days, fewer resignations and higher employee ratings. Most of the participating companies are sticking with the shorter week moving forward.
• Behavior analyst Emma Maas said the shift to a 32-hour week works so well because it also enriches workers’ lives. While people are off work, “they are likely still ‘working’ to manage their lives — running errands, taking appointments and doing housework so they can actually enjoy their weekend more,” she commented . Case in point: Most participating workers reported decreased levels of burnout and improved work-life balance.

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

• Monday, December 5: The Institute for Supply Management will release its monthly Purchasing Managers’ Index, which tracks if the non-manufacturing sector is expanding. It is an indicator of economic health.
• Tuesday, December 6: LinkedIn News launches #BigIdeas2023 , its 7th annual look at the potential trends that will define the year ahead.
• Wednesday, December 7: LinkedIn Senior Editor at Large George Anders will release his latest edition of Workforce Insights , digging into what the seasonal job market looks like this year.
• Thursday, December 8: 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, December 9: The Bureau of Labor Statistics will release the monthly Producer Price Index . Different from the Consumer Price Index, which lands next week, the report measures inflation based on costs to those who make products, not those who consume them.
• Friday, December 9: The University of Michigan will release December’s Consumer Sentiment Index, which measures how Americans feel about current and future economic conditions.