Array
The September jobs report showed that the labor market was stronger than expected, as we predicted in yesterday’s Breitbart Business Digest. That probably locks in another 75-basis point hike when Federal Reserve officials meet again next month.
Payrolls grew by 263,000 workers in September, a bit more than what forecasters had predicted but fewer than the 315,000 new jobs in August. The labor force participation rate, however, dipped one-tenth of a point to 62.3 percent, 1.1 percent below the prepandemic level. The unemployment rate fell to 3.5 percent from 3.7 percent, reversing the rise in August.
Together these indicate that the new hires came out of the ranks of the unemployed rather than new entrants or re-entrants to the labor market. That means the labor market got tighter in September, likely raising inflationary pressures. The average hourly earnings figure held at a 0.3 percent monthly gain, and the average workweek defied expectations that it might decline, also indicating a tighter labor market.
What’s more, the jobs figures are in line with what Fed officials were expecting, as they indicated that they were expecting another big rate hike in November.
“Expectations are for job gains of around 260,000, which would be lower than recent months but very healthy relative to past experience. A jobs number in this range along with the job openings rate reported on Tuesday would show that the labor market is slowing a bit but is still quite tight.
