USA: Jobs report shows 150,000 new jobs in October7. November 2023
USA: Jobs report shows 150,000 new jobs in October
Washington, October 6, 2023
The US added a modest 150,000 new jobs in October. This is seen as an indicator of lower demand for workers. The reason is that interest rate increases are too high. Because they are viewed as burdensome by most companies.
Background: The Fed raised US interest rates sharply from early 2022 to summer 2023 to slow the economy and curb inflation, but they have been on hold since July.
In both September and August, hiring was not as high as initially reported.
The government announced on Friday that the unemployment rate had risen slightly to 3.9%. This is the highest value since the beginning of 2022.
The Federal Reserve expects the labor market to continue to weaken. Thus, this could reduce the upward pressure on labor costs and as a result the
FED end interest rate hike cycle.