Inflation, returning to the office, and women in the workplace

FRI, DEC 16, 2022

TECH, TRANSFORMATION AND THE FUTURE OF WORK

Welcome to the CNBC @Work newsletter, brought to you by CNBC Events. Think a friend, colleague or business partner should receive this newsletter? Subscribe here.

The workforce and workplace continued to dominate the headlines for much of this year. As this is the last Work newsletter for 2022, we're taking a look back at some of the biggest stories that impacted work this year and what that may mean for 2023.

In the beginning of the year, return to office plans were top of mind. After continuously being delayed, the big push to return in-person came this fall for 50% of workers, some for the first time in over two years. And in response to worker demands for flexibility, many companies have adopted a hybrid work model. This new way of work seems to be successful for both employees and companies.

In June, inflation hit a record high of 9.1%. It has since come down to 7.1%. Although the economy is not technically in a recession, the higher cost of living has impacted many Americans: about 64% of the country lives paycheck to paycheck. Meanwhile, the Fed continues to hike interest rates in hopes of tamping down inflation and decreasing job openings, but the strong labor market refuses to quit. Throughout the year, experts have expected major layoffs, but they have not been widespread. Workers have definitely benefitted from the hot jobs market: wages are up 5.1% year-over-year.

The Supreme Court decision to overturn Roe v. Wade has greatly impacted women in the workplace. Some women have turned down jobs in states that ban abortion. 34% of workers under 40 have considered leaving their job to go to a company with better reproductive healthcare coverage and publicly supports a women’s right to choose. In addition, the wage gap persists as women make 82 cents for every dollar paid to a man. And in a recent CNBC Make It: Your Money survey men were found to be more likely to get a raise in the past year. The struggles for women in the workplace won’t be going away next year.

As we enter 2023, the tight labor market remains and employees will continue to benefit. We'll continue to adjust to hybrid work and hopefully find a way to not have a ton of virtual meetings while in the office. One can hope.

For more on the world of work, check out our Key Stories roundup below.

Until next time, stay safe, stay healthy and stay in touch.

Pay has skyrocketed for a lot of workers through the pandemic, but with rising costs taking a bite out of those paychecks and the Federal Reserve trying to tamp down on wage inflation, how long will salaries continue to swell?

Economists say hiring is still competitive but that economic pressures are leading the labor market to cool down. For workers, that means wage growth will remain strong in the first half of the year but could slow by the middle of 2023.

Economists have warned that the U.S. is on the precipice of a recession for months — and although one has yet to materialize, many companies are already bracing for a downturn, announcing hiring freezes, layoffs, and in some extreme cases, rescinding job offers.

Finding a job in this chaotic landscape requires a more creative approach: As companies scale back their hiring budgets, it’s important to market yourself as an indispensable employee, one who can help companies be more efficient or profitable even during an economic crisis.

The idea of a four-day or shorter workweek is gaining momentum worldwide — a big thanks to the remote work boom during the Covid-19 pandemic.

A recent study from 4 Day Week Global, a nonprofit group that has been conducting four-day week pilot programs in several countries, found that employees expressed satisfaction with their overall productivity and performance.