Labor Market to Stay Tight in ’22

Plus: Finding Value in Restaurant Stocks You are receiving this limited-time email resource as a subscriber to Kiplinger's free e-newsletters. To unsubscribe at any time, simply click the link in the footer below. JANUARY 7, 2022 [View in browser]( HOW TO PROTECT AND GROW YOUR BUSINESS AND INVESTMENTS NOW A big drop in the unemployment rate in December, to 3.9%, suggests that businesses will continue to have difficulties in hiring this coming year. While the rate is likely to jump up in January because of the surge in omicron infections, the labor market should stay tight for most of the rest of the year. The labor force is still smaller than it was prior to the pandemic, as many workers either took early retirement, or delayed their reentry because of infection fears. A tight labor market will mean more job openings taking longer to fill, and higher-than-normal wage increases. --------------------------------------------------------------- SPONSORED CONTENT FROM SMARTASSET [7 Secrets People Who Retire Comfortably Know About Financial Advisors]( Working with a financial advisor is a crucial part of any retirement plan. Knowing these 7 secrets can help you avoid years of stress. [READ MORE]( --------------------------------------------------------------- COVID-19 at-home tests take up to two days to register positive results after infection, according to a study. PCR tests are more accurate, but their results take an extra day or two to be reported, since the tests must be evaluated in a lab. Thus, those who are infected will likely be infectious prior to getting a positive test result. This, and the shortage of tests at the moment, are the reasons why the omicron-variant surge has been so difficult to bring under control. Also, regular surgical masks are less effective in combatting omicron, because the virus has been shown to linger in the air, instead of being transmitted through droplets. N-95 masks are likely to be more effective. However, the omicron surge is still expected to be fairly short, simply because so many people have already been infected and are developing immunity to it. “Eat up!” says Oppenheimer. In a Friday note describing some of their top retail picks for the year ahead, Oppenheimer analysts Brian Bittner and Michael Tamas point investors toward the restaurant industry, where they outline three top picks. The pair note that “restaurant valuations relative to the S&P 500 sit at a decades-long trough, suggesting the industry has pockets of opportunities as one digs through the space” – and their three suggestions trade at either discounts to their own historical valuations or their peer group. Here’s what they have to say about each: - “[Chipotle Mexican Grill, [CMG]( directly enters top-pick status for 2022 and underscores our conviction in identifying a powerful entry point.” The pair laud management’s “smart use of pricing,” several same-store sales drivers, and overlooked unit growth. - “[Wendy’s, [WEN]( is overlooked with tangible drivers for a re-rating in 2022 as unit growth ramps, [same-store sales] outperform peers, and EBITDA growth accelerates into '23.” - “[Papa John’s, [PZZA]( is the only top pick that is repeated from our 2021 list, despite stock gains of +57% last year. 2022 is armed with too many attractive drivers for same-store sales, margins and unit growth against consensus at a valuation discount that remains accommodative.” Investors looking for more consumer discretionary picks can check out [our top 12 sector stocks for 2022](. Free download, [The Kiplinger Letter's Forecast](. No information required from you. SPONSORED CONTENT FROM DOMINI IMPACT INVESTMENTS [This Type of Investment Continues to Grow in Popularity]( Check out the findings in our new national poll, which surveyed more than 1,000 investors ages 25 and up to learn about their views on sustainable investing, what issues they care most about, and how they prefer to invest. [READ MORE]( RELATED LINKS [12 Super Small-Cap Stocks to Buy for 2022 and Beyond]( [How to Know When You Can Retire]( [Is Budgeting Overrated?]( [Welcome to the Post-Pandemic Workplace]( [Sign Up Free for Kiplinger Today -- Timely Tips to Make and Keep More of Your Money Every Day]( [Kiplinger] [Facebook]( [Twitter]( [LinkedIn]( Send this to a friend. [Click here.]( All content ©2021 The Kiplinger Washington Editors 1100 13th Street, NW, Suite 1000 Washington, D.C. 20005 Thank you for subscribing to Kiplinger's A Step Ahead, a free resource to help readers navigate the economic recovery from COVID-19. If you ever wish to stop receiving this service, please [click here to unsubscribe](.