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What’s that noise?
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January job gains mask statistical noise, fracturing labor market.
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Hey there, HR pros. Gen Z can’t be bothered with computers, according to one recent survey from the PC manufacturer HP, which found 35% of adults from this generation don’t have one. Stubbornly, they’re holding onto their phones even when 55% said they’re holding them back for not being fast enough.

Good datapoints to reference next time your company is considering investing in new tech (or your boss is asking why so many employees seem to be buried in their phones).

In today’s edition:

Take it with a grain of salt

Meet Matsumoto

Legislative lowdown

—Paige McGlauflin, Courtney Vinopal

RECRUITMENT & RETENTION

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Catherine Mcqueen/Getty Images

If you’re looking for a sign of hope from the labor market, don’t get too excited about January’s job gains.

The newest jobs report from the Bureau of Labor Statistics showed strong job gains for last month, following significant cooling in 2025. But experts warn that some statistical wonkiness, and employment growth concentration in just a few sectors, is likely impacting the January jobs data.

Employers added another 130,000 jobs in January, beating some pretty dour forecasts from economists. The unemployment rate edged down slightly to 4.3%, from 4.4% in December.

On the surface, experts who spoke to HR Brew said those top-line numbers were a pleasant surprise following a cooling in the labor market. January’s strong job gains could be a sign of stabilization, they said. But new benchmark revisions likely have created some statistical noise with January’s initial employment estimates. As a result, employers will want to take January’s employment growth with a very tiny grain of salt.

For more on what HR needs to know about January job gains, keep reading here.—PM

Presented By Spark Hire

RECRUITMENT & RETENTION

headquarters of the US Dept of Labor

The Bureau of Labor Statistics is an agency within the US Dept. of Labor. Kevin Carter/Getty Images

After six months without a leader, the Bureau of Labor Statistics (BLS) may soon have a commissioner.

On Jan. 30, President Trump named Brett Matsumoto as his nominee to lead the BLS. Matsumoto is a longtime statistician at the government statistical agency, who is known by economists for his nuanced takes on data and also served on the White House Council of Economic Advisors during both Trump administrations. The BLS hasn’t had a permanent commissioner since early August, when Trump fired Erika McEntarfer, claiming, without any evidence, that the jobs report had been “manipulated for political purposes” under her watch.

In some ways, Matsumoto’s nomination might be a breath of fresh air for politicians and those who rely on BLS data, including business leaders.

For more on Matsumoto, and the challenges he may face should he be confirmed to lead the BLS, keep reading here.—PM

COMPLIANCE

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Francis Scialabba

Reforms included in a spending bill recently passed by Congress and signed into law by President Trump could transform how employers interact with pharmacy benefit managers (PBMs).

The reforms, which build on other federal efforts to rein in the intermediaries that work with health plans and the pharmaceutical industry to negotiate drug prices, are set to take effect in 2028–2029. Here’s what could change for employers as a result of the new requirements.

For more on the new PBM reforms, and whether they could help employers cut costs, keep reading here.—CV

Together With ADP

WORK PERKS

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Francis Scialabba

Today’s top HR reads.

Stat: A growing number of retirees are worried they don’t have enough savings to last the rest of their lives. More than half (51%) of retirees with money remaining in a defined contribution plan like a 401(k) are worried they’ll run out of money, up from 30% in 2017. (MetLife)

Quote: “The idea is that we want to bring people together in a connected way for those first couple of years.”—Yolanda Seals-Coffield, PwC US’s chief people and inclusion officer, on why entry-level hires are now assigned to one of just 13 locations, instead of any of the firm’s 72 offices across the country (Business Insider)

Read: Large employers are planning to avoid the $100,000 H-1B fee by relying on workers who are exempt from paying it, or can work on a different type of visa. Small businesses may not be able to turn to the same tactics. (the Wall Street Journal)

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