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The WSJ’s Timiraos called the US jobs report weird in a tweet that outlined a WSJ article. “Hiring smashed expectations”, but “no decline in the unemployment rate”. The average hourly earnings were also little lesson expectations.

WSJ Timiraos calls the jobs report weird.

In the article:

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  • U.S. job growth exceeded expectations with 336,000 jobs added in September, the highest since January, and an upward revision of July’s numbers.
  • The surge in employment led to a significant selloff in the bond market, pushing longer-term borrowing rates to a 16-year high (yields are still higher but off highs)
  • The strong job market keeps the option open for the Federal Reserve to increase interest rates again this year, despite concerns of a slowdown due to high interest rates, inflation, and other economic factors.
  • The unemployment rate remained at 3.8%, with employers increasing wages to compete for workers; average hourly earnings rose 4.2% year-over-year in September.
  • Employment in restaurants and bars returned to pre-pandemic levels, with significant job additions in hospitals, nursing homes, and trucking, partly due to increased hiring for the new school year.
  • The robust jobs report could challenge the Federal Reserve’s efforts to slow the economy and raises questions about the sustainability of the summer’s inflation decline.
  • The 10-year U.S. Treasury yield exceeded 4.8% for the first time since 2007, increasing the costs of home mortgages, auto loans, and business debt, and introducing a new economic risk.
  • The Federal Reserve maintained its key interest rate at a 22-year high in its last meeting, with the possibility of another increase this year to combat inflation.

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