Business · Economy · 5 hrs ago
US Jobs Data Could Keep Fed on Track for Another Rate Hike
The US is heading into a week of labor-market data, led by Friday’s monthly jobs report from the Bureau of Labor Statistics.
Economists expect employers to have added 65,000 jobs in October, more than double the previous month’s pace, while unemployment stays at 4.2%.
If the data match those expectations, they could keep the Federal Reserve on track for another rate increase in the coming months as it works to curb inflation.
Other figures due this week include job openings, layoffs, workers quitting and weekly applications for unemployment benefits.
Economists say hiring and firing are both subdued, and the labor market is losing momentum but not collapsing.
The jobs figures will help show whether that weakening is becoming more serious and how much room the Fed has to act.
The US monthly jobs report due Friday is expected to show faster job growth in October, potentially keeping the Federal Reserve on track to raise interest rates again in coming months.
Analysts expect 65,000 jobs to have been added, more than twice the previous pace, while the unemployment rate remains at 4.2%.
Other expected indicators include a slight rise in September job openings and weekly unemployment claims near decades-long lows.
Bloomberg Economics analysts said the labor market was losing momentum but had not reached the point of collapse.
Canada is also due to release October jobs data on Friday, with unemployment expected to remain near 6.5%.
- Who
- The US Bureau of Labor Statistics is due to publish the jobs report. The Federal Reserve is assessing the data.
- What
- The report is expected to show 65,000 jobs added in October and an unemployment rate of 4.2%.
- When
- Friday; the articles do not state the calendar date.
- Where
- United States.
- Why
- The report could affect the Federal Reserve’s path on interest rates as it seeks to combat inflation.
This story does not have two clearly opposing sides.
US manufacturing data are expected to show factory activity remained strong in October.
A monthly report is expected to show a slight increase in September job openings.
US trade data are expected to confirm that AI-related imports continued to widen the trade deficit in the previous month.
Weekly jobless claims are expected to remain near decades-long lows, and a productivity report is expected to show a 2.6% rise in the third quarter.
The US monthly employment report is due, and Canada is also due to release October jobs data.
- Expected US jobs added in October
- 65,000
- Expected US unemployment rate
- 4.2%
- Expected US third-quarter productivity growth
- 2.6%
- Expected Canadian unemployment rate in October
- About 6.5%
- Previous-month Canadian job losses
- 68,300
2 sources
What people are saying
Behind the stable unemployment rate, job losses are gradually increasing, but unemployment claims do not yet point to a rise in mass layoffs. The basic picture is that the labor market, with low rates of hiring and layoffs, is losing momentum but has not reached the point of collapse.