– The unemployment rate rose from 3.5% to 3.7%, the Labor Department Friday.
– Economists had estimated that 190,000 jobs were added last month.
– Employers added 261,000 jobs despite Inflation high, Inflation rising And growing Fears of recession.
Hiring stayed strong in October as employers added 261,000 jobs despite high inflation, rising interest rates and growing recession fears.
The unemployment rate rose from 3.5% to 3.7%, the Labor Department Friday.
Economists had estimated that 190,000 jobs were added last month.The The actual gain was the smallest in all of this time.December 2020.
Yet in another sign of a vibrant labor market, job gains for August September They were updated by a net 29,000 September’s Advance now 315,000, an increase of 263,000
In Recent months have seen a decline in job growth from the robust pace of over 400,000 per month for most of 2011, to around 290,000.However, it has remained resilient.Persistent Manpower shortages have led companies to avoid layoffs on fears they won’t be able to fill openings when the economy bounces back.
Is Is a recession likely in 2023?:Here’s What experts have to say.
Good Good news: Wages are increasingUnfortunatelyThis could be good news, however.Here’s why.
Initial The historic low of 217,000 jobless claims last week was a measure for layoffs.
Health care led October’s 53,000 job opportunities Professional The number of new positions in business and professional services was 39,000.
Leisure and hospitality was 35,000.
Hotels accounted for the majority of the new positions.
Manufacturing was 32,000.
FederalThe state and local governments have added 28,000 jobs.
“The economy seems to be on an even keel in this jobs report,” ” Jane OatesPresident of WorkingNation, a non-profit organization that raises awareness about U.S.workers’ challenges and was once the head of the Labor Department’s employment and training division.
Stocks React to the jobs report
Stocks The economy was moving higher following the better-than expected jobs report.This continued until noon when the Dow, S&P 500 and Nasdaq All things turned out negative.
This This follows closely on the heels Wednesday’s heightened volatility These are the results of The Fed’s decision to raise interest rates Additional 75 basis points MeanwhileThe Dow It was the best! October With its 14% gain, it was on the rise.That It was also its most successful month since 1976.
What Is the labor force participation rate high?
In a hint that worker shortages could persist, the share of adults working or job-hunting edged down to 62.2%, leaving it well below the pre-pandemic level of 63.4%.
The labor force participation rate generally had been rising since 2020 as workers returned to a hot labor market after caring for children or staying idle because of COVID-19 fears.
But This year, the share of this market has remained roughly constant, indicating that most Americans Those who are determined to return to the workforce are doing so.That As employers compete for a smaller workforce, wage inflation could be sustained.
Last month, average hourly wages rose 12 cents to $32.58, lowering the annual increase from 5% in August It is still a healthy 4.7%
The prospect of continuing labor shortages and elevated wage growth will likely mean more hefty interest rate hikes by a Federal Reserve Economists believe that 8.2% is the lowest inflation rate in 40 years.
“This report is a green light for more Fed rate hikes and higher interest rates,” ” Jason SchenkerPresident of Prestige Economics.
Are Are we currently in a recession?
The Fed’s Economic activity and borrowing are being discouraged more frequently, and economists at the top of their game are forecasting a recession by 2023.As As a result, many companies are cutting back on their hiring plans.
Identity, a marketing and public relations company with 33 employees based in Birmingham, MichiganWith sales increasing by 10%,, has hired three new employees.
But Company President Mark Winter It is becoming more cautious.
“We haven’t seen a slowdown in business demand, but we know it’s coming,” Winter says.
So Instead of growing his full-time workforce, Winter Freelancers are being used more often for web development, writing and media relations projects.
“to make sure we have more flexibility.”
Workers They are also worried about a possible recession.Job Linked candidatesIn, on average, are sending out 18% more applications than they did a year ago in a sign that it’s becoming tougher to land a position, according to the professional networking platform.Also, Linkedin Posts to mention “layoff” Or retrenchment are up 17.9% in comparison to last year.
Is Is there a labor shortage?
At The labor shortages also prompted companies to hire holiday workers in the early part of the season.This was likely to boost the economy.October Job growth: Goldman Sachs economist Spencer Hill.
Job In 2010, openings increased from 10.4 million dollars to 10.7 million.September After lowering records in the previous months, There There are nearly two unemployed adults in the U.S.
with vacancies.
Yet there’s little doubt a slowdown is coming, economists say.Many In the coming months, companies that replace employees who have left will likely stop doing this.Morgan Stanley says.
That “could lead to a faster collapse in job growth than normal,” According to the research company.
Worker productivity:Could A boost to it would fix high inflation and weak growth as well as labor shortages.
Work From home:Could Is refusing to go back to work a layoff? Job Market’s shifting tide could alter the rules
Rather Instead of just backfilling certain jobs, Winter says, he’s turning to freelancers.
By According to economists, the slowdown in job growth is likely to occur early next year.Nancy Vanden Houten This is Oxford Economics.Mark Zandi This is Moody’s AnalyticsAccording to, such a stalling is expected in the second quarter.
“Our conversations with executives indicate that employment demand will deteriorate visibly in the coming months as companies face weaker sales domestically and abroad, continued cost pressures, and tighter financing conditions,” Ey-Parthenon In a note to clients
That This would be worrying for job seekers, but good news for those already employed.Fed that’s looking for a pullback in employment and wage growth to determine whether inflation is cooling enough to pause its aggressive rate hike campaign.This Week, Fed It approved its fourth quarter-point rate increase.
Follow along for our live coverage:
Date for CPI release
The Economists are eagerly anticipating the next big report October’s Consumer price index.That’s due Thursday, November 10 at 8:30 AM ET.
The New data could be used to determine the next size Fed Rates increase.If The inflation rate is dropping Fed It could be more inclined than usual to levy a lower rate hike at its last meeting of the year next week.
Biden Inflation concerns October jobs report
President Joe Biden The jobs report was celebrated FridaySay it! “as long as I’m president, I’m not going to accept an argument that the problem is that too many Americans are finding good jobs.”
“Inflation is our top economic challenge,” He said.
“We’re going to do what it takes to bring inflation down.”
Twitter Layoffs
Twitter According to multiple reports, was likely to announce large layoffs.Reports.This comes after Elon Musk Taking over Twitter Become its CEO.About According to an estimate, 3750 workers will be eliminated, or half of the current workforce.
The Verge.
Amazon Apple Stock
Amazon Apple Yesterday, the government announced a halt to hiring.Amazon’s All corporate roles have a hiring pause.Apple’s This is not for jobs in research and development.
Apple Amazon Both stocks were down around noon ET.
Layoff News
Even Although the labor market right now is quite strong, there are still cracks.Tech Particularly, companies are facing challenges.
On Thursday, Lyft Payment processing company Stripe announced plans to cut 13% and 14% of their workforces, respectively, CNBC reported.
Worker productivity:Could A boost to it would fix high inflation and weak growth as well as labor shortages.
Work From home:Could Is refusing to go back to work a layoff? Job The market’s changing tide could change the rules
Why Is the job report so important?
One The jobs report is important because it identifies the following: Federal Reserve This is an important factor in its design.Decisions regarding interest rates.Because Despite growing concerns about a recession, the employment market remains strong.Fed Can raise interest rates Inflation reduction is a goal It is not a cause for concern that there will be an increase in unemployment.But That could change, if the central banks continues to raise rates.
What What does the jobs report reveal?
The The jobs report is one indicator of the strength of the labor market.
Besides The headline unemployment rate is the highlight of the report.This report is an invaluable resource for economists, investors, and policymakers.It It shows how many people have given up looking for work, how much they are making and where the most of their hiring activity is.
When Is the next jobs report available?
The next jobs report arrives Dec.2.
It This will be covered November Employment trends
The Vix
The Cboe Volatility IndexThe VIX (a market indicator of volatility expected over the next 30 day) is slightly down since the jobs report was published.It Recently, the market reached a 6-week low that indicates investors are less unsure about the outlook.
Hiring The turning point is reached:Should Do bosses want to hire now, or wait for a recession?
What What to avoid?:How to financially prepare for 2023 — in case of recession.
Elisabeth Buchwald is a personal finance and markets correspondent for USA TODAY.You can FFollow her on Twitter @BuchElisabeth Sign up now for our newsletter Daily Money Newsletter Here
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