Is the Labor Market Having a 1970s Flashback?

Lately, the labor market feels…familiar. Slower hiring, stubborn wages, and plenty of mixed economic signals. Some economists are even whispering a word we haven’t heard in decades: stagflation.

But before anyone hits the panic button, Andrew Flowers, Chief Economist at Appcast, offers an important reminder:
“Mild stagflation does not mean a dire recession.”

In other words—things are odd, not catastrophic.

Cooling… But Not Loosening
Hiring has cooled in many sectors, but quality talent remains tough to find. Wages are holding steady, and the gap between “standing up” jobs (frontline roles) and “sitting down” jobs (office roles) is widening—frontline roles are still in strong demand.

Layer in ongoing uncertainty around immigration, tariffs, and the Fed, and it’s no surprise recruiters are seeing conflicting signals.

Why Collaboration Matters More Than Ever
This is exactly when networks like NPAworldwide prove their value.

With 500+ member firms across the globe, we’re sharing market insights, swapping candidates, and helping employers navigate this strange “not-hot-but-not-cold” environment together. When the economy becomes unpredictable, collaboration becomes a competitive advantage.

So yes—the labor market might feel a little like a 1970s déjà vu.
But this time around? We’ve got smarter data, better tools, and absolutely no polyester suits.

Adapted from the original post on @NPAworldwide By Veronica Blatt