US labor market added 336,000 jobs in September – DOUBLE analysts’ predictions – sending markets plunging as investors fear more Fed rate hikes for overheated economy
The US labor market added 336,000 jobs in September – DOUBLE analyst forecasts – sending markets tumbling as investors fear more Fed rate hikes due to overheating economy
- The US labor market created 336,000 jobs in September – twice as many as forecast
- Markets fell as investors predicted the Fed will maintain high interest rates
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The latest jobs report on Friday showed a sharp rise in employment, fueling the Fed’s struggle to curb inflation.
The U.S. economy added 336,000 jobs in September, nearly double economists’ expectations of 170,000 and the biggest increase since January.
Although the Fed recently halted rate hikes, it has suggested more rate hikes are in the offing, and Friday’s job gains made traders raise the odds of a hike before the end of the year.
Unemployment rates remained stable at 3.8 percent, the U.S. Bureau of Labor Statistics reported.
Wage growth is slightly lower than expected, at 0.2 percent over the month and 4.2 percent over the year.
Construction workers are building a residential tower in Miami, Florida. The US labor market created 336,000 jobs in September
The new jobs were secured in: leisure and hospitality, government, healthcare, professional, scientific and technical services; and social assistance.
The number of film and sound recording jobs fell by 5,000 and has fallen by 45,000 since May, as strikes continue in Hollywood.
Markets reacted negatively to the data, with the S&P 500 and Nasdaq-100 down about 1 and 2 percent, respectively.
Similarly, government bond yields rose, meaning mortgages and credit card rates associated with them will also rise.
The yield on ten-year government bonds rose by 0.17 percent to 4.87 percent, reaching the highest level since the early days of the financial crisis.