US job growth expected to cool as the Fed looks to pause again
sturdy labour market that’s powering economic expansion.
Government data on Friday are projected to show payrolls in the world’s largest economy increased by about 190,000 in October, still-solid job growth that follows sizable advances in the previous three months.
Hourly earnings are seen rising at the slowest annual pace in more than two years, partly a reflection of increased labour force participation. Moderating pay gains help explain why Federal Reserve policymakers are projected to again hold interest rates steady on Wednesday following their two-day meeting.
The resilient labour market has been instrumental in keeping conumers spending and the economy growing as inflationary pressures gradually wane.
Steady hiring is also a reason economists are more sanguine about the outlook, with recession odds having eased since June.
Economists will also watch a report on third-quarter employment costs on Tuesday for signs of cooler wage growth.
Labor costs are the biggest expense for employers, and any acceleration risks keeping inflation elevated. The government's latest reading on productivity will also give an indication of how successful firms are in mitigating some of those increased costs.
The gradual loosening of tight labour conditions may be reflected in a separate report in the coming week.
