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US Jobs: Slow Growth, Flat Wages, Fed on Hold
3 Oct
Summary
- US labor market shows minimal job gains, continuing a streak.
- Wage growth has slowed to its weakest pace since May 2021.
- New jobs data reduces the likelihood of a Federal Reserve rate hike in October.
The United States labor market is exhibiting a persistent pattern of low hiring and low firing, according to recent data. While factory jobs saw a modest increase, it was enough to maintain an ongoing streak of employment gains.
However, a significant slowdown has been observed in wage growth, which has now reached its weakest level since May 2021. This trend of subdued wage increases, combined with other soft economic indicators, is leading analysts to reconsider the prospects of further monetary policy tightening.
Consequently, the likelihood of the Federal Reserve implementing another interest rate hike in October has significantly diminished. The current data suggests a more cautious approach may be warranted, potentially pausing rate increases in response to the evolving economic landscape.
