October jobs report likely to point to a slowdown in hiring

foxbusiness.com:

FreedomWorks senior economist Steve Moore provides insight on the state of the economy on 'Making Money.'

All eyes will be on the October jobs report when it is released Friday morning as investors look for clues about the labor market's health in the face of higher interest rates and sticky inflation.

The Labor Department's high-stakes October payroll report, due at 8:30 a.m. ET, is projected to show that hiring increased by 180,000 last month and that the unemployment rate held at 3.8%, according to a median estimate by Refinitiv economists.

That would mark a drop from the 336,000 gain in September and the 271,000 monthly average recorded over the previous 12 months. However, it is slightly above the average pre-pandemic monthly increase.

WORKERS NOW DEMANDING NEARLY $80K TO START NEW JOB

«The October jobs report will likely show a marked softening in labor market conditions with private sector hiring moderating and wage growth cooling further,» said Lydia Boussour, EY senior economist. 

Boussour said she anticipates that services employment will continue to moderate in October due to more cautious hiring in both the professional and business services and the leisure and hospitality sectors. Goods employment is also expected to post the first decline since March thanks to the UAW strike against the Big Three Detroit automakers. 

However, she noted that a likely burst in hiring by the government – the result of teachers returning for the start of the school year – will help to elevate the headline figure.

Construction workers are seen on a job site in Miami on May 5, 2023. (Joe Raedle/Getty Images / Getty Images)

The Federal Reserve is closely watching the report for evidence that the labor market is finally