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unemployment in the US accelerated

unemployment in the US accelerated

Economists polled by Reuters had forecast a growth of 200,000 jobswith estimates ranging from 120,000 to 300,000.

The unemployment rate increased to 3.7% from 3.5% in September. The median hourly earnings increased 0.4%after 0.3% in September, but they are likely to have been boosted by a calendar quirk.

The salaries increased by 4.7% year-on-year in Octoberafter 5% in September, since the big increases of last year came out of the calculation. Other salary measures have also been reducedwhich bodes well for inflation.

The The Fed announced another 75 basis point rate hike on Wednesday. and said that his fight against inflation would require a further increase in borrowing costsbut which could be approaching a tipping point of the fastest tightening of monetary policy in 40 years.

The job growth has remained strong despite the fact that domestic demand has softened in a context of higher borrowing costs, as companies replace workers who would have left.

However, with the rising risks of recession, the practice could end soon. A survey by the Management and Supply Institute revealed on Thursday that some companies in the service sector “are postponing the filling of vacant positions” due to uncertainty about the economic situation.

Even so, the labor market is very tight, with 1.9 jobs for every unemployed person By the end of September.

Powell had anticipated that the commitment of the entity was deposited in containing inflationbut the unemployment numbers fuel the hypothesis that the Fed’s next hikes will be more moderate, in order to contain their recessive effect, which may add to the general scenario of contraction in activity.

Source: Ambito

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