The U.S. workforce of the last three years has seen more twists and turns than a daytime soap opera.
In 2020, unprecedented job loss slammed the economy. In 2021, companies eagerly hired to accommodate newfound demand. And in 2022, those same companies grappled with overhiring and, once again, found themselves in layoff territory.
The new year will mark a shift in the fight to regain control over economic uncertainty. However, it certainly won’t be an easy journey.
According to analysts from ZipRecruiter, changes will be minimal, but sustainable.
For starters, inflation is likely to cool off as the Federal Reserve’s interest rate hikes slow consumer spending. As a result, the cost of goods will inch towards their pre-pandemic prices. However, services will likely remain above-average as the ongoing labor shortage drives these prices up.
Wage growth is guaranteed to be on the horizon in the new year as well. Recent data shows that 23 states and Washington D.C. plan to raise their minimum wages next year, which will greatly impact those working in customer-facing jobs.
Lastly, the gains in employment the U.S. has made since the onset of the pandemic has instilled a sense of optimism. Despite the pace of job growth expected to slow down in 2023, it will remain sustainable and open a door for the labor market to remain relatively strong by recessionary standards.