Employers in the U.S. likely hired the fewest workers in nearly two years in October, highlighting some relaxation in labor market conditions and allowing the Federal Reserve to pivot toward smaller interest rate rises beginning in December.
The unemployment rate, which will be released on Friday (Nov. 4), is forecast to rise to 3.6% from September’s 3.5%. The Federal Reserve raised interest rates by 75 basis points on Wednesday and stated that its fight against inflation would require further increases in borrowing costs.
However, the central bank indicated that it may be nearing a tipping point in what has become the quickest tightening of monetary policy in 40 years.
According to a Reuters poll of experts, nonfarm payrolls likely climbed by 200,000 jobs in October, following a gain of 263,000 in September. That would be the smallest gain since December 2020.