In October, hiring slowed sharply, which implies that the economy is cooling after a hot labor market over the summer, reports The Wall Street Journal. U.S. employers added 150,000 jobs during the month, down from September’s 297,000 gain, according to the Labor Department.
The unemployment rate consequently rose to 3.9 percent, a slight increase from September’s 3.8 percent. Wage growth also cooled as employers hired with less frequency. Compared to last year, hourly earnings are up 4.1 percent, down from the 4.3 percent increase in September compared to the same period.
The Fed is pleased with the results. Federal Reserve Chair Jerome Powell said that this cooling economy may mean the central bank can pause interest rate hikes. He added that higher labor-force participation, and immigration rebounding after pandemic shutdowns could mean the economy may continue to prosper without consumer price increases.
“What we’ve seen is a very positive rebalancing of supply and demand, partly through just much more supply coming online,” he said. That is helping to bring down wage growth “in a kind of gradual way.”
There are fears, however, that the job market could lose momentum in 2024. Full Story (Subscription Required)
Related: ICYMI: Top Stories From October; NGA Foundation Leads Charge on Produce Prescription Solutions