November’s jobs report is set to be released later on Friday, with Wall Street analysts expecting a rebound in job growth to be depicted. The addition of 185,000 nonfarm payrolls is expected from the Bureau of Labor Statistics report, up from a 150,000 rise in October. Unemployment is expected to remain at 3.9%, as was the case in the previous month.
“We expect the November employment report to show an acceleration in job growth, driven by the return of striking UAW and SAG-AFTRA workers,” Oxford Economics lead US economist Nancy Vanden Houten explained in reference to Hollywood workers who have been on strike. “Looking through strike-related noise, we expect the jobs report to be consistent with softening labor market conditions, allowing the Fed to forego more rate increases.
As data continues to point to a loosening labor market and cooling inflation, investors are increasingly betting that the Federal Reserve will cut interest rates early next year. Fed Chair Jerome Powell acknowledged in a speech on December 1 that the economy is slowing toward a “more sustainable level”.