The economy has been awash with mixed messages in recent months – throwing a wrench into many employers’ workforce planning for 2023.

Even as inflation persists and layoffs at major companies continue to drive headlines, this January saw unemployment fall to a 53-year low and consumer spending increase more than it has in nearly two years. While some economists say mounting interest rates could still lead to a “painful recession,” others suggest that if companies cut back on new hires and raises, the labor market could cool down without more job losses.