10/06/2023
This Friday morning, on October 6th, the U.S. Department of Labor released the payroll report, unveiling a remarkable increase of 336,000 non-agricultural jobs in September, significantly surpassing expectations. Economic analysts had estimated an addition of only 170,000 positions for the period. The surprising result also exceeds the previously revised numbers of 227,000 new jobs.
The unemployment rate remained stable at 3.8% of the workforce, the same rate as the previous month, against the forecasted 3.7%.
The participation rate of workers in the Labor Force also held steady at 62.8%.
Regarding wages, the average hourly earnings in the past month saw a 4.2% increase compared to the previous year, a slight deviation from the earlier projection of 4.3%.
The data from the September payroll report reaffirms the ongoing strength of the U.S. labor market, posing a challenging scenario for the Federal Reserve, the American central bank, in its efforts to keep inflation within the annual 2% target. Mohamed El-Erian, former CEO of Pimco, expressed concerns, stating that "something will have to give" in the face of the U.S. employment figures, likely prompting the Federal Reserve to maintain higher interest rates for a longer period. El-Erian, currently serving as the President of Queen’s College in Cambridge, Chief Economic Advisor to Allianz, and a Bloomberg Opinion columnist, added that "the Fed will not welcome this report," suggesting potential negative repercussions for both markets and the economy in the long run.
Comentarios