The US labor market posted a stronger-than-expected increase in employment in October, while average hourly wages rose on a monthly basis. Meanwhile, unemployment has risen and results have been mixed as the Fed continued to discuss how long to continue tightening measures to curb high inflation.
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Top row: Non-farm employment growth Bottom row: Change in average hourly wage (compared to the previous month)
Source: United States Bureau of Labor Statistics
Employment increased across a relatively wide range of sectors in October. Growth has been particularly notable in medical, professional and business services and manufacturing industries.
The average hourly wage increased by 0.4% compared to the previous month, accelerating the growth compared to the previous month (+ 0.3%). Market expectations were for a 0.3% increase. Compared to the same month of the previous year, it increased by 4.7%.
The employment report suggests that demand for workers remains strong despite the rapid pace of interest rate hikes and the deteriorating economic outlook. Layoffs, while increasing, are still historically low, with extremely high levels ofJob openingsIn this context, the competition to acquire human resources is driving up wages.
While these conditions have helped support consumer spending, the engine of the economy, they have made the Fed’s efforts to contain inflation more difficult, making it difficult for the Fed to continue its sharp tightening in the coming months.
On the 2nd, the US Federal Open Market Committee (FOMC) decided to raise the official interest rate by 0.75 points. Federal Reserve Chairman Jerome Powell said in a press conference that labor market conditions have yet to “clearly” ease.
The workforce participation rate in October was 62.2%, down slightly from the previous month (62.3%). In the 25-54 age group, the labor force participation rate fell to its lowest level in the past three months.
See the table for detailed statistics.
Original title:Best forecasts for US employment, rising unemployment in a mixed picture for the Fed(extract)
US nonfarm staff increased by 261,000 in October; Disimp. Rate at 3.7%
(Add and update statistics details)
