HomeTop U.S. NewsJob Growth Expected to Shrink as October Jobs Report Looms

Job Growth Expected to Shrink as October Jobs Report Looms

The Labor Department is set to release its October Jobs Report at 8:30 a.m. on Friday. With the Federal Reserve implementing its most aggressive monetary tightening campaign in decades, analysts expect the Jobs Report to show a minor curb in job growth over the past month.

According to Bloomberg Data, Wall Street estimates a rise of 195,000 non-farm payrolls, compared to a 263,000 growth in September. While the unemployment rate in September stood at 3.5%, it is expected to rise by 0.1% in October to 3.6%.

Experts also expect a drop-off in average hourly earnings growth. The 0.3% growth in month-over-month average hourly earnings in September is expected to remain stagnant in October, while the 5% year-over-year average hourly earnings in September is expected to slip to 4.7% in October.

Shrinking U.S. job growth is a welcome sight for the Federal Reserve, particularly as the central bank has been attempting to ease the upward pressure on wages in an effort to cool price rises.

According to Federal Reserve chair Jerome Powell, this decline in job growth may still not be enough to curb the inflation crisis sufficiently. “Although job vacancies have moved below their highs and the pace of job gains has slowed from earlier in the year, the labor market continues to be out of balance, with demand substantially exceeding the supply of available workers,” Powell explained.

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