Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Connect with us

Hi, what are you looking for?

slide 3 of 2
THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Economy

Economy

US job growth smashes expectations raising prospects for rate hikes

An employee hiring sign is seen in a window of a business in Arlington, Virginia, U.S., April 7, 202... An employee hiring sign is seen in a window of a business in Arlington, Virginia, U.S., April 7, 2023. REUTERS/Elizabeth Frantz/File Photo
An employee hiring sign is seen in a window of a business in Arlington, Virginia, U.S., April 7, 202... An employee hiring sign is seen in a window of a business in Arlington, Virginia, U.S., April 7, 2023. REUTERS/Elizabeth Frantz/File Photo

Listen to the article now

Though pay growth is slowing, September job growth indicated that the labor market is robust enough for the Federal Reserve to hike interest rates this year. The Labor Department said 336,000 nonfarm payrolls grew last month in its carefully awaited employment report on Friday. August job growth was raised to 227,000 from 187,000.

Reuters economists predicted 170,000 job gains. Estimates were 90,000-256,000 employment. The larger-than-expected gain came despite seasonal adjustment concerns relating to education personnel returning from summer break, biasing the original September payroll report downward. The economy must produce 100,000 per month to keep up with working-age population growth.

The labor market’s resiliency 18 months after the Fed raised interest rates to reduce demand reflects restrictive monetary policy.

Few experts expect the U.S. central bank to raise rates again this year. The Fed has lifted its overnight interest rate by 525 basis points to 5.25%-5.50% since March 2022.

A UAW strike at General Motors (GM.N), Ford Motor (F.N), and Chrysler parent Stellantis (STLAM.MI) did not affect payrolls. About 25,700 of the 146,000 UAW members went on strike the week the government polled firms for September’s employment statistics.

Following a months-long strike by Hollywood actors, they returned to work following the payroll survey period. The unemployment rate stayed at 3.8%, an 18-month high.

Monthly salary growth was low, with average hourly wages up 0.2% after August. After rising 4.3% in August, salaries rose 4.2% through September. Wages are still increasing faster than the 3.5% experts estimate is consistent with the Fed’s 2% inflation aim. Wage growth may slow as fewer people quit their employment, but recent large union contracts offer a concern.

Labor market strength is helping maintain the economy, with third-quarter growth forecasts as high as 4.9% annualized, more than double the Fed’s 1.8% non-inflationary rate. Dark clouds are looming over the economy due to rising Treasury rates and political turmoil in Washington.

This month, millions of Americans begin student loan repayments, which economists believe would reduce consumer spending on durable items, residences, travel, and entertainment, affecting jobs. Economists say the end of the more than three-year moratorium may decrease student loan households’ monthly budgets by $ 40.


Comment Template

You May Also Like

Business

MSG Networks has returned to Optimum after a nearly two-month blackout, restoring Knicks and Rangers coverage for frustrated fans. The new deal places MSG...

Business

Alphabet has introduced **Premium Lite**, a lower-cost YouTube subscription offering ad-free videos (excluding music). This move aims to expand YouTube’s subscriber base and reduce...

Business

India has been named the best solo travel destination for 2025 by Kensington, thanks to its rich culture, history, and diverse experiences. From the...

Business

Warren Buffett's Berkshire Hathaway has aggressively sold stocks, amassing a record $334 billion in cash. Major divestments include Apple and Bank of America, while...

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.

Ok