Jobs Hot, Confidence Not?

Welcome to The Shift, a weekly newsletter where I provide thought-provoking ideas to help you think differently about your career and money.

Hot or Not?

There’s a real dichotomy in the job market.

At surface level, the economic data suggests things are good. Even with a bit of a slowdown in job gains in April, the unemployment rate is still below 4%, wages are rising, and there are plenty of job openings.   

On the street (Main Street), things don’t feel as great.

Consumer confidence is falling because people aren’t feeling good about their job prospects or future income.

There is a nuance to this downbeat attitude that caught my eye.

The people that are feeling the least confident are those that are¹ :

• Over the age of 35

• Earning more than $75,000

It got me thinking:

These are the people that are tangled in the crosshairs of a changing workplace.

Middle Manager Crosshairs

It’s the workers with a chunk of experience, starting to settle into their best earnings years that are feeling less than great about things.

In other words, it’s the middle managers.

That might be because layoffs are on the rise for this group. They accounted for almost a third of layoffs in 2023, reaching their highest level in at least six years (see chart).

They are seemingly getting caught in the crosshairs of changing business models, which stem from an elevated focus on efficiency and essentialism. Did I mention the number of companies talking about “operational efficiencies” on quarterly earnings calls hit its highest level ever earlier this year?²

The average age of a manager is 44, according to Zippia. Which is also around the same age individuals start to build a nest egg of savings.

That can potentially offer discouraged managers the option to consider taking on more risk in their careers.

Or at least get them to think differently about the risks they are willing to accept.

What Kind Of Risk Is Worth It?

Often the people that find themselves in the crosshairs, or losing confidence for fear of being in the crosshairs, are the ones that choose to get creative.

There is a reason part-time work, self-employment, starting small businesses and buying boring businesses are rising trends.

Individuals are taking control of their future.

Some are even redesigning their careers inside of corporations. To make work, work better for them. Or to find ways to make themselves indispensable to the organization.  

The floodgates to reimage your dream work situation, either inside an organization or otherwise, are open.

Don’t hold back. You are the creator of your future.

Let’s make The Shift!

P.S. I’d be forever grateful if you’d share this with 1 other person who might enjoy it. 🙏

Lindsey

Sources:

1. Conference Board Consumer Confidence Index, April 2024.

2. Morgan Stanley.