Investors and policymakers eagerly await a jobs report on Friday that will show whether the labor market has continued its monthslong cooldown. The fresh report marks one of the last major pieces of economic data before the presidential election.
Economists expect the new economic release to show that the U.S. economy added 150,000 jobs in September, which would amount to a slight uptick from the previous month.
Weaker-than-expected jobs data in both July and August has stoked concern among some economists about the nation’s economic outlook.
Despite an overall slowdown this year, the job market has proven resilient. Hiring has continued at a solid pace; meanwhile, the unemployment rate has climbed but remains near a 50-year low.
“The labor market is still healthy, but we have clearly seen a slowdown,” Roger Aliaga-Diaz, chief Americas economist at investment firm Vanguard, told ABC News in a statement. “Now we are approaching an inflection point.”
The new data is set to arrive roughly two weeks after the Federal Reserve cut its benchmark interest rate a half of a percentage point. The landmark decision dialed back a years-long fight against inflation and offered relief for borrowers saddled with high costs.
Inflation has slowed dramatically from a peak of about 9% in 2022, though it remains slightly higher than the Fed’s target of 2%.
Speaking at a press conference in Washington, D.C. last month, Fed Chair Jerome Powell described the rate decision as a shift in approach as the Fed focuses more on ensuring robust employment and less on lowering inflation.
Federal Reserve Board Chairman Jerome Powell speaks during a news conference at the Federal Reserve in Washington, Sept. 18, 2024.
Ben Curtis/AP
“This recalibration of our policy stance will help maintain the strength of the economy and the labor market, and enable further progress on inflation,” Powell said.
In theory, lower interest rates help stimulate the economy and boost employment. However, the Fed’s interest rate decisions typically take several months before they influence economic activity. In any case, the soon-to-be released report tracks hiring for September, meaning the majority of the period reflected in the data took place before the rate cut.
Still, the jobs report holds significant implications for further rate decisions over the coming months. The Federal Open Market Committee, or FOMC, a policymaking body at the Fed, has forecast additional interest rate cuts.
By the end of 2024, interest rates will fall another half of a percentage point from their current level of between 4.75% and 5%, according to FOMC projections. Interest rates will drop another percentage point over the course of 2025, the projections further indicated.
The new jobs data will be released at a time when the economy faces a potentially significant disruption. Tens of thousands of dockworkers went on strike Tuesday, snarling dozens of ports along the East and Gulf coasts. The work stoppage threatens to reignite inflation and cause layoffs in related industries if the work stoppage persists, experts said.
As the United States gears up for the highly anticipated Election Day, all eyes are on the upcoming jobs report that is set to provide a crucial economic overview of the country. The report, which is released monthly by the Bureau of Labor Statistics, offers valuable insights into the health of the labor market and serves as a key indicator of the overall economic well-being of the nation.
With the presidential election just around the corner, the jobs report has taken on added significance this month. As voters head to the polls to cast their ballots, they will be looking for clues about the state of the economy and how it may impact their decision at the ballot box.
The jobs report provides a wealth of data on various aspects of the labor market, including the unemployment rate, job creation, wage growth, and labor force participation. These indicators offer a snapshot of how well the economy is performing and can help policymakers, businesses, and individuals make informed decisions about their future.
One of the key metrics to watch in the upcoming report is the unemployment rate. This figure represents the percentage of people who are actively seeking work but are unable to find employment. A lower unemployment rate is generally seen as a positive sign for the economy, indicating that more people are finding jobs and contributing to economic growth.
Another important indicator to watch is job creation. This figure measures the number of new jobs that have been added to the economy in a given month. A strong job creation number suggests that businesses are expanding and hiring new workers, which can lead to increased consumer spending and overall economic growth.
Wage growth is also a critical factor to consider in the upcoming jobs report. Rising wages can boost consumer confidence and spending, which in turn can stimulate economic activity and drive growth. Conversely, stagnant or declining wages can put a strain on household budgets and dampen economic prospects.
Labor force participation is another key metric to watch in the upcoming report. This figure measures the percentage of working-age individuals who are either employed or actively seeking work. A high labor force participation rate is generally seen as a positive sign for the economy, as it indicates that more people are engaged in the workforce and contributing to economic activity.
Overall, the upcoming jobs report will provide a comprehensive overview of the state of the labor market and offer valuable insights into the economic landscape ahead of Election Day. As voters weigh their options at the polls, they will be looking to this report for guidance on how the economy is faring and what it may mean for their future. Stay tuned for the release of this important data and its potential impact on the upcoming election.
