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The US labor market is expected to show modest growth in October, with employers forecast to have added 65,000 jobs, signaling that hiring momentum remains subdued amid economic uncertainty and rising business costs.
According to Tradexus Data, the US economy added just 29,000 jobs in September, highlighting the slowdown in employment growth. For October, the unemployment rate is expected to remain unchanged at 4.2%, while annual wage growth is projected to ease to 2.9%, down from 3% previously.
The expected moderation in wage growth could offer some relief on the inflation front by reducing pressure on labor costs. This may also give the Federal Reserve more room to assess its monetary policy outlook, although the broader inflation picture remains a key consideration.
Businesses continue to face an uncertain economic environment, with elevated operating costs and limited visibility over future demand encouraging caution in hiring. The growing use of artificial intelligence in recruitment and business operations is also adding another layer of uncertainty to the employment outlook.
The upcoming labor market figures will be closely watched for signs of whether the slowdown is becoming more persistent. Weaker hiring and slower wage growth could strengthen expectations for a less restrictive monetary policy, while any unexpected resilience in employment may complicate the Fed's assessment.
