Bloomberg News reports that the labor market in the United States is projected to manifest moderate but steady growth in employment. It reflects an all-time low unemployment rate, fewer vacant job positions, and cooler wage gains.
What do economists have to say?
Economists forecast that non-farm payrolls escalated in June by 225,000. However, it is still regarded as strong, but it has been a small advance since 2020.
Several labor-related markers or indicators will become available in Friday’s report. It also includes the recent figures in the context of job cut opportunities, claims related to weekly unemployment, private payrolls, and job openings.
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Labor market conditions
Economists observed that one of the main factors to drive the economy is the labor market. It is despite Federal Reserve continued tightening the monetary policy to combat inflation. The current forecast also states that data from June has been consistent with a report that the economy has been resilient.
On Wednesday, minutes of the Fed’s meeting in June are supposed to be released. It may be recalled that during this June meeting, the policymakers did not make changes to the interest rates. Investors are expecting to search for clues on the resumption of hiking rates.
What is the scene looking north?
If we look at the North, the job numbers in Canada for June will allow us to know the final scenario. It will show how the economy is performing just ahead of the central bank’s decision related to the rates the week after.
Statistics related to savings, wealth data for the various households, and their income levels, aside from consumption, will also be released during the first three months of 2023.
What will keep the investors on their toes?
In other places, a possible rate hike in Australia, reports of inflation right from Switzerland to Turkey and Brazil. The economic health of China will keep investors busy.
The PMI, or purchasing manager’s index of China’s Caixin figures today that they will provide an unofficial snippet of the performance of the factory sector in the second largest economy of the world, China. There is also a lot of concern that Beijing is gradually becoming devoid of stimulus tools for supporting growth.
PMIs from across Asia are slated to be released, which will further reflect on the performance of a wider region. The Reserve Bank of Australia is supposed to meet on the same day when yet another hike in rate is slated. However, there is a split in opinion after weaker-than-anticipated monthly inflation figures for May.
The central bank of Malaysia is seen holding steady rates on Thursday. Sri Lanka’s policy decision will also be out the same day.
