January job growth expected to slow as companies put the brake on hiring

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The Labor Department's January jobs report will shed light on the health of the labor market in the first month of 2023 when it is released on Friday.

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That would mark a drop from the 223,000 gain in December and would be the weakest monthly job growth since December 2020.has been closely watching the reports for signs that the labor market is starting to slow down from its torrid pace as policymakers try to wrestle inflation under control. Although the Consumer Price Index has cooled slightly from a peak of 9.1% in June, it remains about three times higher than the pre-pandemic average.

has now topped 10 million for 13 consecutive months; before the pandemic began in February 2020, the highest on record was 7.7 million. A hiring sign is shown during a job fair at a Schneider Electric manufacturing facility in Hopkins, South Carolina, Jan. 18, 2023. For many economists, the possibility of unemployment rising has become a question of when, not if. At the conclusion of the Fed's two-day meeting on Wednesday, Powell signaled the full effects of tighter monetary policy have yet to come.

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