Bloomberg News reports that employers in the United States will slow down their pace of recruitment in the current month. This occurred following an increase in the robust payroll earlier in the year. This indicates the strong labor market that has driven the expansion.
What Do the Figures Say?
Government data, which is scheduled to be released on November 3, is anticipated to reveal a surge in payrolls by about 190,000 for October in the largest economy of the world over the past three months.
Annual Surge in Hourly Earnings Slowest Ever
The hourly earnings are expected to rise annually but at a much slower pace. This has been happening for more than two years. And it is partly due to a surge in the participation of the labor force. This moderation observed in the pay gains is crucial as it plays a significant role for the Fed policymakers in anticipated decisions by the US Federal Reserve so that they can hold the interest rate steady in the forthcoming meeting.
Effect of the Labor Market on Consumer Spending
The labor market has played a vital role in sustaining consumer spending aside from economic growth amidst receding inflationary pressures. This has reduced the probability of a recession since June, as noticed.
This has proved to be a contributing factor to the economic outlook, which is looking up, and there are reduced chances of recession.
Cost of Employment and Productivity Data being Monitored
Bloomberg News reports that economists have been keeping a tab on a report on the employment cost of the third quarter. This will enable them to observe the growth trends since labor cost is significant for the recruiters.
Meanwhile, the recent productivity data of the government will offer insights into how effectively companies are managing the risen costs.
There are anticipations that the tight labor conditions might be easing, while job opportunities in September were predicted to decline compared to the earlier month.
Scenario in Canada
In Canada, for October, the fresh data related to jobs will throw light on the status of the labor market. Meanwhile, for August, the gross domestic product is anticipated to show minimal growth due to surging interest rates. It has been affecting spending and household costs.
Scenario outside North America
Speaking of the scenario outside North America, the globe will keep tabs on Japan for a decision of its central bank. It is being viewed as a potential shift in policy. In the United Kingdom and Norway, No-change rate outcomes are being apprehended.
There are likely to be cuts in the Czech Republic and Brazil, while data shows in the Eurozone that there might be decreasing inflation and a slowdown in economic growth.
