Hiring is up, people are staying put, and offices fill up midweek.
Hi, I'm Denise. This is a monthly briefing for founders who wear the HR hat and for small People teams. I explain what's changing in hiring, retention, work policy and employment law, what it means for a startup, and what to do about it, with sources so you can check my work. I've spent over a decade in HR, including twice as the first People hire at an early-stage startup.
1. The number to know: 165,000
The U.S. added 165,000 jobs in October, well above the roughly 65,000 economists expected, and unemployment edged down to 4.1%. (Fox Business, Hunt Scanlon.) These figures are preliminary and can be revised.
What it means for you: if you're hiring, good candidates likely have other offers. Decide quickly, and put the salary range and next steps in writing.
2. Trend: "job hugging" may be loosening
"Job hugging" means staying in a job out of caution rather than enthusiasm. The latest government data shows how few people are leaving: in September, 3.4 million workers quit (a rate of 2.1%) and hires were 3.4%, according to the BLS Job Openings and Labor Turnover Survey. The quits rate was up from 1.9% in August, though BLS calls that change small, and the number of quits is up 375,000 from a year earlier. The figures are preliminary.
What it means for you: someone who isn't quitting isn't necessarily engaged. If hiring keeps strengthening, people who have been staying out of caution may start looking. Have a 15-minute "stay conversation" with your most important people this month: what keeps them here, what would make them leave, and what they want to grow into. Then fix what you can, whether that's pay, scope or a title.
3. Trend: the return to office is real, but uneven
The Flex Index's Q3 2025 report found 34% of U.S. companies required full-time office attendance, up 2 points from the year before, driven mainly by government agencies. Actual attendance lags the rules: Kastle's occupancy barometer shows offices fill up midweek, and on Tuesday, October 27, New York hit 87.3% and San Francisco 59.9% of pre-pandemic levels, each its highest peak of 2026. Cities differ a lot.
What it means for you: if you set an office policy, give a reason people can repeat, pick anchor days (most offices are busiest Tuesday through Thursday) and put it in writing. Handle exceptions consistently, and talk to an employment lawyer if a request for remote work might involve a disability or other accommodation.
4. Law watch: what starts January 1, 2027
Law firm Littler's roundup of new employment laws (published November 9) includes these headline items:
- California SB 947 restricts employers from using or relying solely on automated decision systems in employment decisions. Applies if you use software to screen, rank or score people.
- California SB 951 requires 60 days' notice before technological displacement affecting 50 or more workers within 30 days. Matters mainly as you grow.
- California AB 1883 bars workplace surveillance tools that use AI to collect neural data or recognize emotional state.
- Illinois SB 807 requires employers with 75+ employees to report layoffs of 50+ full-time employees at one site.
Do this month: list every tool you use to screen, rank or monitor people, ask each vendor how it makes decisions, and note which states your employees live in. This is a starting point, not legal advice. Talk to an employment lawyer before changing policy.
5. AI in hiring: less common than the headlines say
SHRM's 2026 State of AI in HR report, based on 1,908 HR professionals, found about 39% of organizations use AI in HR, with recruiting the most common use at about 27%. Other surveys report much higher numbers, mostly because they define "use" differently.
What it means for you: you don't need an AI hiring tool to keep up. If you use one, you're still responsible for its decisions, so be able to explain how it works.