What to Watch in Friday’s Jobs Report: How Long Can Labor Market Keep Booming?

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Economists say hiring slowed in October while wage gains appeared to be cooling

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https://www.wsj.com/economy/jobs/what-to-watch-in-fridays-jobs-report-how-long-can-labor-market-keep-booming-344f5a1aAllison Joyce/Bloomberg News Employers pulled back on hiring in October while handing out smaller annual raises, analysts said, which would be indications the labor market is slowly losing momentum.

Economists surveyed by The Wall Street Journal estimate employers added 170,000 jobs in October, down from a surprisingly strong 336,000 new jobs in September. Thecould account for some of the decline because striking workers aren’t counted on payrolls. Economists see the unemployment rate holding steady at 3.8%.

Wage growth has trended down since early last year. Economists estimate average hourly earnings rose 4% in October from the previous year, down from 4.2% in September. On a month-to-month basis, they see wage growth ticking up slightly.to raise rates further. The Labor Department is set to release the October employment report at 8:30 a.m. Eastern time Friday.Forecasters predicted 2023 would be a recession year in the U.S., as Americans faced higher borrowing costs.

 

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