Inflation is the country's biggest problem right now — and other economic happenings

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Catch up on headlines from the last 7 days.

• Inflation is letting up — just barely. The prices manufacturers charge for their products jumped 11% in April from a year earlier. The surge was smaller than the 11.5% increase in March. Meanwhile, consumer prices rose 8.3% year-over-year, also cooling slightly but still near 40-year highs. Both reports signal continued inflationary pressure, and point to the Federal Reserve hiking interest rates in the coming months.
• Gas prices are spiking again, hitting a record $4.40 per gallon last week, according to AAA. Some relief could be on the way, with crude oil prices dropping as China’s economy slows — but a sustained drop is unlikely. Meanwhile, jet-fuel prices are also soaring, taking the cost of airplane tickets with it.
• The Great Reshuffle likely isn’t going anywhere, according to recent Gartner research. Voluntary turnover is set to remain 20% higher than pre-pandemic days — meaning constantly mulling over recruitment and retention strategies is the new norm.
• New York City is committed to working from home, with just 8% of workers heading into an office every single day. Most businesses, per new data from a NY-based business advocacy group, are opting for a hybrid model. Even JPMorgan Chase CEO Jamie Dimon, one of the loudest critics of work-from-home, recently said he now expects 40% of his employees to work under a hybrid model.
• Teens are currently helping cool a hot job market, with the unemployment rate for those aged 16 to 19 near all-time lows in April. Pre-pandemic, teen unemployment had been on the rise.
• Boardrooms are getting more diverse. Women won 45% of new Fortune 500 board appointments last year — setting a new record — with the total number of women on boards now up to 29%, according to recent data.

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

Inflation is the country's biggest problem right now

• Even as inflation cools slightly, rising prices are top-of-mind for Americans. According to a new survey from Pew Research Center, a whopping 70% say inflation is the “biggest problem” facing the nation — “and no other concern comes close.” One Moody’s estimate said consumers are adding $341 to their monthly spend, while a separate Bankrate survey found that money matters are impacting the mental health of 42% of Americans.
• “Even the Joneses are having a hard time keeping up with the Joneses,” marketing professional Albert Fong commented. Inflation, especially in newly popular Sun Belt spots like Phoenix and Miami, is making once “relatively affordable” areas unlivable for locals. Rents and home prices are surging the fastest there.
• Housing isn’t the only thing Americans are struggling with. Jason Davis, a real-estate management professional, noted that the costs of flying and lodging are also soaring: “I am sure many Americans will forfeit their family vacations this summer.”
• Michelle Fox, a personal finance journalist for CNBC, broke down what items are getting more expensive and how you can save extra money right now. Shelter and travel are pricey, like Fong and Davis pointed out, but food is also one of the main categories to worry about. Fox suggested adjusting your budget to allow more for groceries and cutting back elsewhere, assessing which items you can buy in bulk and considering a garage sale or side gig to bring in more cash.

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Show Gen Z the money

• According to a recent survey of those pursuing bachelor’s degrees, college students expect to earn $103,880 in their first job. That’s more than twice the most recent estimate of an average starting salary. Experts expect the tight labor market “likely encouraged unrealistic salary expectations.”
• Millennial Dominique Feldman commented that expectations and reality aren’t aligning due to lack of honest conversation around the topic of pay: “When I was in college, no one told me about salaries and wages,” she wrote. At the same time, she said, younger professionals shouldn’t be “living on scraps and selling our souls,” implying the average starting salary simply isn’t high enough. Researcher Austyn J. Tempesta agreed. He commented that he paid over $50,000 a year in Ivy League tuition: “Sorry if I expect some sort of return.”
• Nick Moore, an executive at a construction company in Florida, mentioned Tom Brady’s most recent achievement — a $375 million broadcast analyst deal with Fox Sports. Brady, Moore said, has a track record and level of expertise that calls for a high salary. And college students? Well, they typically aren't Tom Brady, he offered as a reason why the average starting salary falls around $50,000. “My fear is that students with an expectation of a six-figure salary may choose to sit on the sideline until they get one.” His advice to those entering the workforce is to choose a field you’re passionate about, and then give your all to your first gig — regardless of pay — to make sure you are growing and learning “everything you will need to demand that six-figure payday” as soon as possible.

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Where are all the frontline workers going?

• Since the outset of the pandemic, frontline workers have been leaving their jobs in droves. A recent LinkedIn Economic Graph analysis identified the top industries those workers pivoted to, with real estate, construction and tech and media leading the way. For more on this trend, read the latest edition of LinkedIn’s Workforce Insights newsletter.

• North Carolina-based insurance agent Dom Ervolina commented that he knows several people who started their careers on the frontline and then transitioned to more sales-oriented positions. He reasoned some of the “core requirements” for success in both roles are similar: patience, active listening and problem solving.
• Vikki Ralston, who worked in healthcare for 44 years and recently switched into the construction industry, had similar advice for those looking to pivot. She said to take stock of your skills and interests — and then think critically about how they can apply to other fields. There will be some knowledge gaps, but don’t let fear keep you from overcoming them. At first, Ralston said, she was “scared to death,” but realized she felt her best when pushing herself outside of her comfort zone. Now, she said, “I feel invigorated by learning new skills and technologies, along with getting to know a lot of wonderful engineers, designers and city government officials.”

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

• Tuesday, May 17: The Census Bureau will release its monthly retail sales report. The report is an indicator of consumer spending and general economic activity.
• Tuesday, May 17: Federal Reserve Chair Jerome Powell is expected to speak on short term interest rates. Hikes are expected in June and July.
• Wednesday, May 18: LinkedIn Senior Editor at Large George Anders will release his latest edition of Workforce Insights, digging into the buzz around the four-day workweek.
• Wednesday, May 18: LinkedIn News will be launching its “Guide to Kickstarting Your Career,” to help recent graduates and other career starters navigate today’s rapidly evolving hiring climate.
• Thursday, May 19: The Labor Department will release initial jobless claims for the previous week. The report, a proxy for layoffs, tracks the number of people filing for unemployment benefits.