New, long-awaited US nonfarm payroll data confirmed that there is no job crisis. But what does the result mean for the Fed?
In the United States, private sector payrolls rose more than expected in September, further demonstrating that labor market conditions are not deteriorating.
Hiring picked up pace for the first time in six months, a sign that the U.S. economy is recovering.
The private sector added 143,000 jobs in September, up from an upwardly revised 103,000 in August, according to the ADP National Employment report released Wednesday. That ends five straight months of labor market slowdown and beats economists’ forecasts for a 128,000-job gain.
U.S. labor market recovers. What does this mean for the Fed?
The struggling US manufacturing added jobs for the first time since April, suggesting that American factories are starting to see signs of recovery.
Service providers posted the biggest gain, at more than 100,000. All but one region of the country saw stronger hiring in September, the report said.
The labor market recovery came in a month when the Federal Reserve cut rates by half a percentage point, marking the first time in years that policymakers have moved to lower borrowing costs and ease restrictions on the U.S. economy.
The important thing for the Fed, which is keeping an eye on signs of a pick-up in inflation, is that the stronger hiring was not accompanied by a surge in wage growth.
The ADP report showed that year-over-year wage growth for those who remain in the workforce fell to 4.7%, while those who change jobs saw a steeper decline, with wage increases falling from 7.3% in August to 6.6% in September. This suggests that while employers are adding new hires, they are not increasing wages as sharply, likely reflecting a cautious approach in uncertain economic conditions.
Original article published on Money.it Italy 2024-10-02 15:39:12. Original title: Usa, il mercato del lavoro non è crisi secondo questi dati
