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The most anticipated economic report of the month will be published on Friday morning.

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Both Wall Street and Main Street will be watching the October jobs report for signs that hiring is slowing, which will be welcomed by the Federal Reserve as a sign that high inflation may be starting to ease.

Economists polled by Refinitiv say the US economy likely added 200,000 new non-farm payrolls in October. This is down from 263,000 the previous month and will be the weakest job growth since December 2020.

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While job growth is slowing, the job market remains tight as employers are reluctant to lay off workers.

US COMPANIES ADD 239,000 JOBS IN OCTOBER, BETTER THAN EXPECTED: ADP

The unemployment rate is expected to rise to 3.6%. This is up from 3.5% in September.

Hourly wages are also expected to rise at a rapid pace, although they may have weakened slightly since September.

The Fed raised interest rates again this week in an attempt to bring inflation down from a nearly 40-year high.

Low unemployment and solid wage growth are good for workers, but large wage increases, especially without improvements in labor efficiency, can contribute to higher inflation.

JOBS SUDDENLY GROW IN SEPTEMBER DESPITE FED EFFORTS TO COOL LABOR MARKET

Builders at work

Jobs in the US unexpectedly surged in September in labor market reports released this week.

The Labor Department said on Tuesday that 10.7 million jobs opened in September, up from 10.1 million jobs the previous month.

According to the ADP National Employment Report released Wednesday morning, private sector job growth rose faster than expected in October.

Companies added 239,000 jobs last month, beating the 195,000 gain that economists polled by Refinitiv had predicted and better than the downwardly revised 192,000 gain in September.

Man looks at job opportunities

REDUCING INFLATION COULD RAISE UNEMPLOYMENT UP TO 6%, WALL STREET BANK WARNING

At a Fed meeting on Wednesday, Chairman Jerome Powell said that to contain inflation, the central bank would likely have to raise rates high enough to weaken the labor market. This could mean that hiring will slow down in the coming months, or even many employers will cut jobs and raise the unemployment rate.

“The bigger picture is an overheated labor market in which demand (for workers) substantially outstrips supply,” Powell said.

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Politicians want to see signs that employment and wage growth is slowing, he said, “but I don’t see any reason for real easing yet.”