Economic cracks have began to show as tech companies such as Google and Facebook begin to freeze hiring and rescind offers to interns. However, job report data is expected this Friday that may paint a more positive picture.
According to estimates given by a Bloomberg survey of economists, it is predicted that Friday’s US job report will show a healthy payroll increase by about 250,000 for September. July of this year also marked the lowest unemployment rate (just below 3.7%) since 1969. However, payrolls have shown a gradual decreasing trend coming down from the 700-800,000 increases that were seen at the beginning of the year.
In light of this positive news, this will likely signal further rate increases from the Fed. Projections are indicating a further 125 basis point increase by the end of 2022. 3 Bloomberg economists explained that while job openings are still at historic levels, the Fed will have to make the tough decision to hike to reduce upward pressure on wages. Their full analysis can be viewed here.
The Bank of Israel, as predicted, also raised rates by 3/4th of a percentage point this week along with the Reserve Bank of Australia who raised their rates by a lower than expected 25 basis points.
To view more information on employment trends, click here to see the full article at Bloomberg.com by Vince Golle.
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