The world More jobs mean increased consumption and demand, which in turn can lead to higher prices and higher inflation, exactly at odds with what the central bank strives for. Photo: Peter Morgan/AP/NTB Read more Close
NTB
Oct. 6 2023 16:58 – Updated Oct 6 2023 16:58
336,000 new jobs were created in the US in September. Chief economist Kyrre M. Knudsen calls it a shock that can push interest rates up.
The number of new jobs was higher than expected. In August, there were 187,000 new jobs, and economists expected the figure to be 170,000 in September. The number of new jobs is the highest since January.
It is a sign that it is not so easy to overcome the rise in prices. More jobs means increased consumption and demand, which in turn can lead to increased prices and higher inflation, exactly contrary to what the central bank is striving for.
– A shock
– This is simply a shock. That is twice as high as the market predicted beforehand. It is almost so that one wonders if there is something wrong with the count, says Knudsen, who is chief economist at Sparebank 1 SR-Bank.
– If this is true and persists, the companies’ need for people is such that it will lead to increased wage growth. This will in turn push up inflation and put pressure on the central bank to raise interest rates further, he says.
The unemployment rate remains unchanged at 3.8 percent. Hourly wages increased by 0.2 per cent, the same as in August. On an annual basis, the increase is 4.2 per cent.
More teachers
– Lower pressure on wages will be good news in the situation we are in, says economist Rubeela Farooqi from High Frequency Economics.
She fears that a continued strengthening of the labor market could lead to the central bank announcing another interest rate increase this year.
The new jobs came in the areas of leisure and hotels and accommodation and in the health sector. In the public sector, there was a marked increase in the number of teachers, mainly in connection with the start of the new school year.
Fears of a heated labor market contributed to a slight decline in opening trade on US stock exchanges on Friday. The Samp;P 500 index was down 0.3 percent in morning trading, while the Dow Jones shrank 0.4 percent. The development was almost flat on the Nasdaq.
2023-10-06 14:58:50
#surprising #number #jobs #lead #unwanted #jump #interest #rates
