What to know about the labor market — and other happenings in the world of work

Welcome back to The Work Shift, a weekly newsletter that keeps you informed about the economy, labor market and evolving world of work through data-driven insights. Click subscribe to be notified of future editions.

Catch up on other headlines from the last 7 days.

• The U.S. economy added 143,000 jobs in January, fewer than expected. Read more about this below.

• Job openings hit a three-month low in December, pointing to a slowing labor market. Available positions declined to 7.6 million from a revised 8.2 million in November, led by professional and business services, the Labor Department said Tuesday. As well as a slowing jobs market, the figures suggest a lessening of upward pressure on prices — a good sign amid sticky inflation. ??Cate Chapman
• Labor productivity rose at the fastest pace in 14 years during 2024 — excluding the jump seen as businesses reopened amid the pandemic. Employee output advanced at a 2.3% annualized rate, the Labor Department said Thursday. Productivity gains are a brake on inflation as they help offset labor costs, which are generally the biggest expense for businesses. ??Cate Chapman

• Inflation fears have driven consumer sentiment to a seven-month low, stoked by the threat of tariffs on many U.S. trading partners. Consumers are expecting prices to rise an annual 4.3% this year, the University of Michigan reported Friday — a full percentage point more than last month. Higher prices discourage spending, a factor reflected in the 12-percentage point drop in the report's gauge for buying conditions. ??Cate Chapman
• AI costs are shifting tech jobs abroad. The share of U.S.-based employees at some of the biggest tech companies is falling, with executives hiring remotely — abroad — to lower labor costs in favor of preserving margins and investing in AI, Bloomberg reported. Salesforce and Workday are the most recent examples. Checkr, a platform for new-hire background checks, also said the volume of international hiring jumped 42% last year. ??Jake Perez
• 'Super Bowl Flu' at all-time high. A record 22.6 million people say they planned to miss work the Monday after the Super Bowl, per UKG Workforce Institute data, up from 16.1 million last year. Post-Super Bowl absenteeism is so pronounced there’s a bill in Indiana trying to make Monday a holiday, along with various petitions requesting the same. ??Laura Entis

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

What the January jobs report means for the economy

• The U.S. economy added 143,000 jobs last month — about 30,000 fewer than expected — as fires in Los Angeles and unusually cold weather elsewhere weighed on the labor market. The report also came with "a batch of annual revisions," Kory Kantenga, LinkedIn's head of economics, noted. "Overall, these revisions don't change our view that the labor market continues to hold up but slowed meaningfully last summer."
• Friday's Labor Department report also showed the unemployment rate ticked down in January to 4% from 4.1%, and average hourly wages went up. Wages grew +0.5% for the month and +4.1% year-over-year.
• "While these levels of job creation have minimal impact on already-low expectations for a rate cut in March, Federal Reserve policymakers are likely not enthused by stronger-than-expected wage growth — a more important data point when it comes to lowering inflation to the Fed's 2% annualized inflation target," Saira Malik, Nuveen's chief investment officer, explained.?
• Nuveen and other experts will be paying attention to this week's release of the U.S. Consumer Price Index, which lands Wednesday, and is expected to show cooling price growth in January. Following the jobs report that undershot expectations, the decrease could help alleviate concerns around reigniting inflation.

Job searches lasting 6+ months

• How long is it taking most people to land a new role? More than half (53%) of Americans actively looking for a new job have been on the hunt for six months or longer, according to the findings of LinkedIn’s latest Workforce Confidence survey.?
• What's more? Over one in three (34%) have been searching for at least a year — if not longer. One in five job hunters are still relatively new to the job market. When they responded to the survey between mid-December and mid-January, 5% said they had been searching for one week, and 16% said they had been searching for a month. The survey includes anyone who has been searching for work, employed or not.
• Roberta Matuson, a career coach, recommends job seekers "get ready for the job hunt to take way longer than you think it will." She tells her own clients to limit their job search to three hours a day, jump on referrals and follow up on leads often. When that's not working, "step away from the computer" and seek out in-person networking opportunities. "It's harder for people to ignore you and easier for them to help you when they have a connection to you," she explained.

Humility helps workers thrive

• More professionals are checking out on the job these days. According to Gallup's latest survey, the rate of U.S. employees who report feeling engaged at work is falling. This is particularly true for workers under the age of 35.
• One potential solve? Stronger management. A separate global study found that workplace leaders who made a point of exhibiting humility had a significant positive impact on workers' engagement. This can look like demonstrating self-awareness and naming the value of team members' contributions. Such actions are more likely to make direct reports feel respected and motivated to take on new challenges.
• "Don't confuse humble leadership for passive leadership," Stephanie Koenig, a supply chain senior leader, warned. "When a leader demonstrates vulnerability, admits mistakes, and celebrates the strengths of others, they build a culture where innovation and collaboration thrive."

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

Wednesday, February 12:

• The Bureau of Labor Statistics will release the monthly Consumer Price Index for January, which measures inflation through the price of goods and services.
• Federal Reserve Chair Jerome Powell is set to testify on the economic outlook and recent monetary policy before Congress.

Thursday, February 13:

• The Bureau of Labor Statistics will release the Producer Price Index for January. The gauge measures the change over time in prices charged by domestic producers for their output.?
• 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 14:

• The U.S. Commerce Department will release its retail sales report for January, which tracks demand for finished goods, such as food, clothing and furniture, in stores and online.