Signals from October 2022 job report.
U.S economy reported 261000 jobs in October 2022, what signals October 2022 job report indicate ?
U.S economy added 261000 jobs in October 2022
U.S economy added 216000 jobs in October 2022, but unemployment raises slightly by 0.2% to 3.7% in October 2022. Even though the reported jobs are way lower that the jobs reported six months back. The U.S labor market is reducing but at slower rate hence show strength against expected jobs.
Signal for Federal Reserve from October 2022 job report.
Even though the inflation is high and Federal Reserve is increasing the rated aggressively. The jobs creation has come down from 600,000 jobs to the level of 261000. There is good drop in jobs creation but in month of October 2022 the jobless data reflect jobless rate increase from 3.5% to 3.7% only.
Though the jobs created is low as 261000, but experts were expecting the jobs to be 205000 only. Hence job creation data is better than the estimate. This at back of numerous layoff from jobs.
Sectors in which jobs are created.
There are lot of layoff’s from jobs are in process in U.S economy. On the other hand some of the sectors saw high hiring rate. Mainly the sectors in which the hiring is done by employers are health care, professional services and manufacturing sectors.
Big mega cap companies like Amazon has declared to stop any new hiring in there corporate. Apple Inc. has stopped there hiring for all new corporate jobs but hirings continue for Research and Development.
U.S economy is slowing but 'still strong'.
The job data declared for new jobs addition of 261000 in month of October 2022 is better than estimate. The rate of unemployment has increased marginally from 3.5% to 3.7%. The average per hour wage has shown a slow increase of 3.9%.
The Federal Reserve has increased rate to control inflation to target of 2%. As inflation is 40 year high, Fed is increasing rates to reduce the jobs into the market. As people will have no job they will not have money to spend. In month of October 2022 the job data is better than expected. That means now more than expected people will have money to make purchases. Hence will not reduce the inflation as demand will increase.
With the interest rate so high still employers are hiring. Indicate the strength in the U.S economy. Employers are hiring and giving higher per hour wage is indicating strength.
