As anticipated, on July 13th the IRS issued an increase to the standard mileage rate. From July 1 through December 31, the rate will be 76 cents per mile; increased from 72.5 cents the first half of this year.
Most employers choose to reimburse work related mileage at the IRS standard rate, instead of requiring employees to track all expenses related to use of their personal vehicle for work.
2027 INSURANCE PREDICTION
Could the cost of family health insurance really exceed that of a new car? With insurance carriers expecting the cost of medial and prescription services to rise by 9% in 2027, that could be a reality.
This article by the LA Times highlights the issue and underlying reasons: California employer health premiums will cost as much as a new car in 2027 – Los Angeles Times .
It will continue to be really important over the next year to engage in discussions with your insurance broker to identify possible plan changes to manage more premium increases. Those could be changes in plan choices, premium shifting, or other alternatives.
MINIMIZING HEAT RELATED INJURIES
As we are seeing high temperatures across the country, it’s a good time for a reminder to ensure safety practices adhere to applicable heat related rules.
This is a good overview for the federal rules that includes links to states like California that have their own rules: OSHA Updates its Heat Emphasis Program: How to Protect Your Staff From the Summer Heat and Comply with OSHA in 6 Practical Steps | Fisher Phillips LLP . It’s important to share this link with those on your team responsible for safety.
US LABOR MARKET SIGNALS CONTINUED “LOW HIRE, LOW FIRE” TREND
The U.S. employment market remains stuck in a “low hire, low fire” pattern, according to The Conference Board’s latest Employment Trends Index (ETI), a composite gauge of payroll employment health.
The index declined for a second consecutive month, a trend that Jannik Schulz, economic research associate at The Conference Board, says points to “slower payroll growth ahead.” Schulz also noted that worker mobility remains low, with few employees choosing to quit their jobs. Adding to the cautious outlook, 22.5% of consumers reported that “jobs are hard to get” — the highest share since January 2021.
Aligning with Broader Economic Data
These findings track closely with recent data from the U.S. Bureau of Labor Statistics, which reported that total nonfarm payrolls grew by just 57,000 jobs in June — well below private-sector forecasts. Compounding the weak reading, April and May payroll figures were revised downward by a combined 74,000 jobs, a signal that a Glassdoor chief economist said suggests a more pronounced slowdown could be ahead.
Schulz attributed much of June’s softness in the index to “consumers’ pessimistic hiring outlook,” which he said aligns with current labor market realities.
The report also found that initial unemployment insurance claims rose for a second straight month, reaching 222,000 — the largest monthly average recorded so far this year. Schulz noted that while claims “remain near historical lows,” the upward trend is being read as “a negative signal for the labor market ahead.”
AI Talent’s Reverse Trend
Despite the broader slowdown, demand for AI-skilled workers continues to buck the trend. Recent research from talent acquisition platform ICIMS found that roles like computer programmers, software developers, and database administrators are seeing significant year-over-year job growth — even as overall layoffs in the tech sector continue to climb, with AI often cited as a leading driver of those cuts.
