On Friday, the new jobs report came out. Job creation remained robust, the unemployment rate fell to match a five-decade low, and wages rose steadily in September. It should be good news. Well…. These aren’t normal times, and this news may cause the Fed to keep increasing interest rates. Pretty much every American who wants a job right now can get one. That says that demand is not being slowed… and thus, the moves to restrict demand.
CompTIA’s analysis of the job report is in line – continued job gains, with a streak of 22 consecutive months. Year-to-date tech industry employment is tracking 22% ahead of 2021. Companies across the economy added an estimated 84,000 tech workers for the month. The tech unemployment rate edged down slightly to 2.1%, signaling a still very tight labor market. Employer job postings for technology positions totaled 302,370 for the month, a decrease of -12% versus the previous month.
That said.. .KMPG survey data says that US CEOs are expecting workforce reductions. With about 9 in 10 expecting a recession in the next year, 51% are considering workforce reductions over the next six months, according to a new survey of 400 U.S. CEOs.
Then again, those CEOs may be out of touch — 65% of CEOs saying they want workers back in cubicles 9-to-5 by 2025.
Why do we care?
I also want a pony, but it isn’t going to happen. We’ll get into remote work tomorrow.
For today, we care about knowing that the job market will remain pretty tight and that everyone who wants a job has one – so owners are competing for talent or creating new talent, and some big businesses will trim people. I’ve seen this movie before – more new technology providers are created during downtimes, so expect some additional competition and the opportunity to pick up new staff.