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Breaking Job News: New Unemployment Data, Hybrid Work Demands, And AI-Driven Shorter Work Weeks

• Pete Newsome

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In today's job market update, host Pete Newsome explores the continuation of hybrid work, new unemployment claims data, and significant legal rulings. Highlights include a decline in new jobless claims, the steady adoption of hybrid work models, and employer control over remote work arrangements. Insights from staffing companies suggest a positive job market trend, while new hybrid work behaviors like 'polyworking' and 'coffee badging' emerge.

Additionally, a CEO's optimistic views on AI potentially leading to shorter workweeks contrast with concerns about job displacement. Pete concludes by discussing a court ruling that reinforces employer control over work arrangements and how businesses can effectively navigate remote work policies.

News Articles: 
1. Unemployment claims: https://www.dol.gov/ui/data.pdf
2. Owl Labs State of Hybrid Work Report:  https://owllabs.com/state-of-hybrid-work/2025
3 HR Digest Shorter Work Weeks: https://www.thehrdigest.com/could-ai-be-the-path-to-a-shorter-workweek-zoom-ceo-yuan-believes-it-could/
4. CBIA Court Ruling: https://www.cbia.com/news/hr-safety/court-remote-work-ruling-backs-employers

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Pete Newsome:

Today's job market headlines include a new study showing hybrid work is here to stay, a court ruling on working in the office that backs employers, and a CEO that says soon we may not need to work in the office five days a week anyway. But first, last week's initial unemployment claims have been released by the Department of Labor. For the week ending September 20th, the initial jobless claims came in at $218,000, which is down 14,000 from the prior week's revised levels of 232,000. The four-week moving average also came down. Continued claims are holding steady with about 1.93 million still receiving unemployment benefits. So what does this mean? Well, the number suggests that despite fewer jobs being created recently, we aren't seeing big cuts, and that's a good thing. So although many job seekers are having a tough time right now, we know that they are, fewer people losing their jobs last week versus the prior week is always a good thing. It just is. I mean, that is a trend in the right direction. Now, from my personal experience, and although this is anecdotal, September seems to be trending really well. I've had conversations in the past week and a half with seven staffing company owners, and with that exception, they've all seen their job orders start to spike over the past couple of weeks. And my own team is seeing the same thing. So I don't want to count chickens yet, but I won't be surprised if we see a big jump in the right direction when the new job numbers come out next week, both from the federal government, and yes, we know there's reason to be skeptical about those, as well as the ADP National Employment Report, which comes out just about this time next week. So we look forward to seeing those numbers and hopefully those are positive next. Out Labs has released their 2025 State of Hybrid Work Report. It's based on a survey of 2,000 U.S. workers. The big takeaway is that hybrid work is here to stay. It's not going away, it's a lasting shift. 73% of companies haven't changed their hybrid or remote policies in the past year. And that's a good thing because flexibility, it seems, is non-negotiable with employees. If companies rolled back remote options, 40% of employees said they'd start job hunting right away. 22% would demand a raise, and 5% say they would quit outright. Only 10% said they wouldn't mind losing that flexibility. And it sounds like employees are willing to back that up too, saying that they'd trade an average of 8 to 9% of their salary for more flexibility. The report also highlights new trends like polyworking, where 28% of employees have a second job. When do we stop calling that side hustle? Do we need another term for it? I guess we we have one whether we want it or not. Also, coffee badging is something that 43% of hybrid employees admit that they sometimes do, which is where they just show up at the office long enough to be seen. Another thing the survey shows is how much crossover there is between work and life, with 59% scheduling personal appointments during business hours. I suspect that number has always been about that. It seems like it's been a common thing throughout my entire career. But 65% are interested in micro shifting. And that's where they would break their day into short nonlinear work blocks based on their own personal energy levels and productivity patterns. So definitely something that employers should uh consider doing if it allows their employees to be happier and get more work done. That's a win-win uh if there ever was one. But stress remains a big issue. Nine in ten surveyed say that they're stressed right now at work, and 39% report that it's gotten worse over the past year. So that's an awful trend to see. And that is a big jump year over year. And I suspect it probably has as much to do with everything else going on in the world and the state of the job market and the economy than it does with what's happening in their actual office. I would love to see that number turn around next year for sure. And then finally, on the AI front, 80% of employees say they're using or experimenting with AI at work, but more than half are open to the idea of an AI avatar attending meetings in their place. I would love that too. I would like if my AI avatar can do everything work-related for me so I can hang out on the beach instead. That sounds great. I don't think we're quite ready for that yet. Maybe next year, stay tuned, we'll have to wait and see. And speaking of AI, let's shift to an equally optimistic view of its potential. According to HR Digest, Zoom CEO Eric Yuan believes AI could pave the way for a shorter work week. He recently told the New York Times if AI can make all of our lives better, why do we need to work for five days a week? Every company will support three days, four days a week. I think this ultimately frees up everyone's time. Yes, it would free up everyone's time. Sounds great, but let's not get ahead of ourselves. Every company, no time soon, will be supporting three days a week, four days a week. I would say most won't, but it's a nice thought. And he's not alone in thinking that. Bill Gates has alluded to the potential for a two or three-day work week based on what AI can do to enhance productivity. And NVIDIA CEO Jensen Huang has pretty much said the same thing. So he's not alone in thinking that, that's for sure. And but these views are vastly different than the doom and gloom scenarios we often hear, where AI is seen primarily as a job destroyer. That is a concern that I have for sure. But listen, let's hope that they're right in this. And there are pilot programs that have been tested over the past few years that indicate a four-day work week has some really positive signs. Employee satisfaction goes up for sure, and there doesn't appear to be a drop in output. But here's a rub for me. AI can reduce busy work and it can free us up to spend our time on more meaningful tasks, but there's no question that that potential could displace entire categories of jobs. And Yuan did acknowledge that. He said some entry-level roles may vanish while new ones will emerge, but I don't think that's an if. To me, that is happening right now. So that's where I'm struggling with articles like this. I mean, it's great. AI can has all the potential in the world for us and can enhance our lives and give us fewer days in the office. That's awesome. But the us is what I struggle with, right? Fewer days in the office for those who remain, but a lot of people won't as a result of AI completely replacing what they can do. So look, we'll see what happens over time. It is way too early. This is such a moving target, but we know that the AI train has left the station and it isn't slowing down. So what I the message I always want to give is it is up to everyone individually to figure out if there's going to be a place for them on that train. So pay attention to what is happening, how it's going to affect your individual job, how it's going to affect your career over time, and then make sure that you are adjusting as necessary. Finally, for today, the Connecticut Business and Industry Association reports on a new appellate court ruling that gives employers more authority to deny fully remote work arrangements. The case centered on an administrative assistant who requested to work entirely from home due to health concerns. The employer argued that in-person tasks like notarizing documents and retrieving files were essential to what this person did. And the court sided with the employer, affirming that full remote work was not a reasonable accommodation under the law because it eliminated essential duties. The judges emphasized that employers deserve considerable deference in defining what's essential to a role. So for business leaders, especially the ones considering adjusting your remote work plans, if you're bringing people back to the office, this ruling underscores the importance of documenting job requirements clearly when it comes to offer letters and job descriptions. So take care of that up front. And if in-person work is essential, spell it out clearly. That'll protect against legal challenges and will set a clear expectation for both sides. And this ruling really solidifies that the employer winning is meaningful for them in this case. But if you're more loose about it, you may not be successful if that's a route you end up having to pursue. So look, if you've gotten this far, also think of the survey I talked about earlier. That's worth considering. Employees don't want to go back to the office. So yes, you could force them to do it. The question is, should you? And that's something that every employer, every company will have to answer for themselves and then answer to their employees as a result. So those are the top stories for today. But before we wrap up, here's your fun fact. There was a title in medieval England, a job called Gong Farmer. And that was a person paid to empty and clean out cesspits and latranes. So fun fact maybe for us. Definitely doesn't sound like a fun job for those who were gong farmers. Sounds pretty awful, but I guess someone had to do it. So there you go. Thank you for listening today. I appreciate it. Please like, share, and subscribe. And if you have any comments or feedback, I'd love to hear that too. Talk to you tomorrow.