Stocks sink despite Friday's report that hiring cooled in September

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A new jobs report shows a modest slowdown in hiring last month, which could help fight inflation. The unemployment rate edged down to 3.5%

A man walks past a"Now Hiring" sign in New York City on July 8, 2022. Signs that job growth cooled in September could help with uncomfortably high inflation. Hiring slowed in September, in a sign the red-hot job market may be cooling.— a modest decrease from the 315,000 jobs added in August. The unemployment rate dipped to 3.5%, matching a half-century low.

"I think this is good news for the Federal Reserve," said Nela Richardson, chief economist at the payroll processing firm ADP."You are seeing some softening in early-stage demand [for workers] but still continuation in hiring." "It's really hard to hire somebody this month and three, four months from now let them go. So people are being a lot more cautious," said Tim Fiore, who conducts the survey for the Institute for Supply Management.

"The more people who come back to the labor market, the more likely we'll see some loosening in hiring conditions and a continuation of these steady gains," said Richardson.

 

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