Friday brought the jobs report. The US labor market shows strong growth, with a blockbuster gain of 353,000 jobs in January and revisions showing 333,000 jobs added in December. Joblessness remains low, wage growth beats inflation, and unemployment has been below 4% for two years. The average workweek has decreased. Hourly wages in the US rose 0.6% in January, outpacing inflation and indicating a strong labor market. Economists caution that the January wage number may be influenced by that decline in hours worked and other signals suggesting a potential slowdown in wage or job market growth.
According to an analysis by CompTIA, the US tech industry’s employment grew for the second consecutive month, with nearly 18,000 jobs added in January. Job postings for future hiring also rebounded, with over 392,000 active postings for tech occupations. The highest demand for tech workers was in professional, scientific, technical, administrative, support services, manufacturing, finance and insurance, and information sectors.
However, the Washington Post had a different analysis. Despite a booming U.S. economy and a strong job market, the tech industry has been experiencing a wave of layoffs, with companies like Google, Amazon, Microsoft, and others letting go of thousands of workers. The layoffs have left the tech workforce feeling despondent and confused as the industry cuts high-paid workers to improve profitability.
And in Business insider, The number of people quitting their jobs in the US fell by 12% last year, which could indicate a lack of confidence in the labor market. Economists suggest that this trend may lead to slower wage gains and reduced worker bargaining power. The decline in job quits is part of a larger trend called “grumpy staying,” where workers feel unable to leave their current roles. Forecasters warn that the unemployment rate could rise as the economy slows down.
And from Axios, contrary to doomsday predictions, the retail sector is thriving with a low vacancy rate and increasing rents. Demand for retail space remained strong in 2023, and the retail landscape has evolved to complement e-commerce. The retail apocalypse never happened, as Americans still enjoy shopping, and brick-and-mortar stores continue to thrive.
Finally, a different kind of market data. According to a survey conducted by Pew Research Center, YouTube is the most widely used social media platform among U.S. adults, followed by Facebook and Instagram. TikTok has seen significant growth in its user base. The report also highlights age differences in platform usage, with younger adults more likely to use platforms like Instagram, Snapchat, and TikTok. Demographic differences in platform usage are also noted, such as higher Instagram usage among Hispanic and Asian adults and higher LinkedIn usage among those with higher levels of education.
Things look … good! It’s ok to say that.
As the labor market becomes more competitive and job openings decrease, employees have less leverage to negotiate better pay or benefits when switching jobs. That’s a statement, not a judgment.
I want to call out the red herring of job cuts. These big tech cuts come as companies face pressure from investors and cite economic concerns and inflation, which are proving not to be honest. I don’t buy it.
The retail apocalypse hasn’t come – in fact, that sector seems to be doing great. Note retail space, not office space. We’re looking for those second-order effects here. Retail industries should be up, related industries should see good conditions, and all are areas to look for opportunities in.