Job searches are getting more competitive – and other happenings in the world of work

  • U.S. consumer-price growth slowed to 7.7% in October, the slowest rate since January. That suggests inflation could be relenting and bolsters expectations that the Federal Reserve could ease up on hiking interest rates. Markets rallied because of the report.
  • Side hustles are on the rise. According to the Labor Department’s latest numbers, about 4.5 million Americans have an additional role to their main job, a figure that has increased 6% over the past year.
  • CEOs aren’t shying away from saying “recession” anymore. The word has come up in 165 earnings calls this quarter, compared to just 42 earnings calls during the third quarter of 2021.
  • Silicon Valley has a hiring hangover. Waves of tech layoffs are triggering similar responses from corporate leaders: We’re sorry, but we grew too fast. The same workers that were a part of a war for talent just last year are now grappling with a changed industry landscape.
  • Wall Street is cutting jobs now, too. Citigroup and Barclays started downsizing last week and JPMorgan Chase is expected to be next.
  • The housing market is deflating as the Fed ramps up interest rates in an effort to cool inflation. Mortgage rates are hovering near the highest level since 2001 as overall mortgage applications have slipped to their weakest since 1997.
  • Travel is back but a total headache. Airfare isn’t coming down anytime soon — between spiking fuel costs and worker shortages, demand for flights is expected to outstrip supply for a couple more years. If you manage to catch a flight, you might not have the best lodging experience. Hotel room rates are way up — but so are complaints about service and upkeep.

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

  • Job searches are getting more competitive

    • There was about one job opening for every job seeker who is actively searching at the end of October, according to LinkedIn’s latest State of the Labor Market. That means the U.S. labor market is still strong despite ongoing economic uncertainty and rising interest rates — but it also points to a more competitive landscape for job seekers as job openings ease up from their May peak.
    • The number of active job applicants on LinkedIn rose slightly from its level in September — and is 19% higher than it was in October 2021. “Additionally, the intensity of job search among job seekers, measured by the number of applications per applicant, is witnessing a notable increase from last year,” LinkedIn’s Head of Economics and Global Labor Markets Rand Ghayad, PhD wrote. The ratio of applications sent per applicant was 22% higher in October compared to the same month last year.
    • Ghayad pointed out that there are still job openings and modest hiring gains and that workers are still leaving their jobs in search of higher pay and better benefits, but he expects that to continue shifting. “The Fed’s rapid monetary policy tightening is expected to have a more visibly negative impact on the labor market by 2023,” he said. “As dynamics across the labor market shift, companies are recognizing that having the right people with the rights skills in the right roles will set them up to smoothly navigate more turbulent times — and are shifting towards a skills-first approach to achieve that,” he concluded.
    • A separate Harris Poll found that more than 70% of Americans looking for a new role say their current job hunt is more difficult than they expected. Most are under the impression that companies are outright ignoring applications, as if they didn’t really want to hire anyone.

    The remote job search is more competitive still

    • “There are two labor markets in the U.S. nowadays,” Ghayad noted: The remote market and the on-site market. “The former is cooling down quickly and the latter is still tight,” he said. Over half of all job applications in the U.S. were for remote roles in October — but the percentage of those remote job listings on LinkedIn fell to 14% in October, down from February’s peak of 20%. That comes out to one in seven job postings.
    • “As a recruiter, I must say working on remote roles means that I have the entire country as my candidate pool,” David Reitman commented. “Finding talent becomes somewhat easier,” he continued, but sticking out as a job seeker in that talent pool becomes more difficult.
    • Fewer remote job postings and higher levels of competition for those roles also underscore a fundamental misalignment between workers and business leaders. Workers are looking to hold on to the flexibility afforded by working from home, while leaders want employees back in offices. “Unfortunately for employees, leverage is moving back to the employers” as the economic outlook darkens, veteran entrepreneur Brent Roberts commented. Ghayad agreed: “The power balance is likely to start leveling out in the coming months.”

    Veterans are finding success in these cities

    • The transition from military service to civilian life can be daunting. In honor of Veterans Day, LinkedIn’s latest Workforce Report explored cities where college-educated veterans have the best shot at rising into leadership positions.
    • Metro areas that include major military bases including Colorado Springs, Colo., Norfolk, Va. or San Antonio, Texas are all areas of opportunity for veterans. Other hot spots where the military’s influence is a much smaller part of the local economy include Las Vegas, San Diego, Baltimore and Seattle. The most common fields include leadership roles in defense and space manufacturing followed by information technology services and consulting.
    • Veteran Jeffrey Krenzer commented that he went through three jobs in less than three years following his transition into civilian life. He’s happy in his current leadership role and says the secret to that success is networking by using LinkedIn to find potential veteran mentors and getting involved in local chapters and programs with other folks in your shoes. Career coach Melanie Mitchell-Wexler commented that another way to ease the transition into civilian life is to start considering what it will look like well before actually beginning the job search. “Start working on that resume and recognizing those skills that are transferable,” she said. “Crafting this story will save you valuable time,” and hopefully allow you to bypass positions that aren’t a fit.

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

      • Tuesday, November 15: The Bureau of Labor Statistics will release the monthly Producer Price Index. Different from the Consumer Price Index, which landed last week, the report measures inflation based on costs to those who make products, not those who consume them.
      • Wednesday, November 16: The U.S. Census Bureau will release its monthly retail sales report for October. The report is an indicator of consumer spending and general economic activity.
      • Wednesday, November 16: LinkedIn Senior Editor at Large George Anders will release his latest edition of Workforce Insights, digging into which U.S. workers are most concerned about layoffs.
      • Thursday, November 17: 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.
      • Thursday, November 17: The U.S. Census Bureau will release the annualized number of new construction single-family homes in October.
      • Friday, November 18: The National Association of REALTORS® will release the annualized number of existing homes that were sold in October. The report is an indicator of housing market strength.

 

LinkedIn News | Taylor Borden