Concerns about inflation have increasingly turned to concerns about the job market. Last month’s weaker than expected jobs report led to turmoil in stocks.
Expectations are that Friday’s report will show 161,000 jobs added when it’s released at 8:30 a.m.
If jobs come in around expectations it would mean a slowing but steady job market. Some economists are expecting less, around 150,000, pointing out that August data can often come in worse than expected and can be revised later.
Still, a significantly worse-than-expected report could once again lead to concerns that the Fed’s rapid raising of interest rates has hurt the economy and job market more than previously known.
The Fed is on track to cut interest rates at its next meeting announcement on Sept. 18.
Fed Chair Jerome Powell last month said “the time has come” to lower interest rates.
A person waits in a line for a prospective employer at a job fair, Aug. 29, 2024, in Sunrise, Fla.
Lynne Sladky/AP
Powell indicated the Fed would soon bring interest rates down from a 23-year high. The shift could lower borrowing costs for everything from credit cards to auto loans to mortgages.
While the unemployment rate remains historically low, it ticked up to 3.8% last month. A sharp downward revision of job growth estimates in June and July lowered those totals by a combined 110,000 jobs.
The September jobs report has recently been released, and it predicts a gradual growth in the job market in the coming months. This is welcome news for many Americans who have been struggling to find employment in the wake of the COVID-19 pandemic.
According to the report, the economy added 194,000 jobs in September, which is a slight increase from the previous month. While this may not seem like a significant number, it is a positive sign that the job market is slowly recovering. The unemployment rate also dropped to 4.8%, down from 5.2% in August.
One of the industries that saw the most growth in September was the leisure and hospitality sector, which added 74,000 jobs. This is likely due to the easing of COVID-19 restrictions and more people feeling comfortable going out to restaurants, hotels, and other entertainment venues.
Another area of growth was in professional and business services, which added 60,000 jobs. This includes jobs in fields such as accounting, consulting, and technology, which are in high demand as companies continue to adapt to a more digital and remote work environment.
While these numbers are encouraging, there are still challenges ahead for the job market. The ongoing supply chain issues and labor shortages are causing some companies to struggle to find workers, which could slow down the pace of job growth in the coming months.
Additionally, the looming threat of inflation and rising interest rates could also impact hiring decisions for many businesses. As prices continue to rise, companies may be hesitant to hire new employees or give out raises, which could further hinder job market growth.
Overall, the September jobs report paints a picture of a slowly recovering job market. While there is still work to be done to get back to pre-pandemic levels of employment, the data suggests that we are moving in the right direction. As we head into the final months of the year, it will be important to keep an eye on these trends and continue to support policies that promote job growth and economic recovery.
