Employment in the United States increased more than expected in October, but the rise in the unemployment rate to 3.7% indicates some easing in labor market conditions, which will allow the Federal Reserve to move towards a lower rate hike starting in December.
The long-awaited US Department of Labor employment report on Friday showed non-farm payrolls rose 261,000 jobs last month. September data was revised up to show 315,000 jobs added instead of 263,000 as reported in precedence.
Economists interviewed by Reuters expected an increase of 200,000 jobs. Estimates ranged from 120,000 to 300,000 jobs.
The unemployment rate rose to 3.7% from 3.5% in September. Even the hourly wage media it increased by 0.4%, compared to 0.3% in September.
Wages rose 4.7% year-on-year in October, after rising 5% in September, as last year’s big hikes were not taken. in consideration.
On Wednesday, the Federal Reserve raised interest rates by an additional 75 basis points and said its fight against inflation would require higher financing costs, but signaled it could be nearing a tipping point. in what has become the fastest monetary tightening of the last 40 years.
Employment growth remained strong even as domestic demand declined due to rising borrowing costs in how much companies have replaced workers who had left. But as the risks of recession increase, this practice may soon end. A survey conducted on Thursday by the Institute of Supply Management has shown that some service sector companies are “putting off reallocations to vacant positions” due to uncertain economic conditions.
However, employment is still limited in the market at a rate of 1.9 jobs per unemployed person.
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