FreedomWorks Senior Economist Steve Moore provides insight into the current state of the economy on How to Make Money.
All eyes will be on the December jobs report, released Friday morning, as investors look for clues about the health of the labor market in the face of rising interest rates and persistently high inflation.
A high-stakes December for the Department of Labor salary reportThe 8:30 a.m. ET announcement will show that jobs rose by 170,000 last month and the unemployment rate edged up to 3.8%, according to the median estimate of Refinitiv economists. It is expected that
it is, Increased by 199,000 in November An average increase of 232,000 cases per month was recorded over the past 12 months.
“Winter weather has arrived across much of the country, and we expect the December employment report to reflect some cooling trends,” said Mark Hamrick, senior economic analyst at Bankrate.
Workers are now asking for nearly $80,000 to start new jobs
of federal reserve The report comes as policymakers seek to ensure continued easing of inflation, providing evidence that the labor market is finally softening after months of surprisingly strong job growth. The books are carefully monitored. The consumer price index has cooled significantly in recent months, but remains above the Fed's recommended 2% target despite 11 interest rate hikes in 16 months.
Has the Federal Reserve finished raising interest rates?
Friday's slower job growth and further slowing in wage growth could be welcome signs for the U.S. central bank, which kept interest rates on hold for a third consecutive month in December. Most economists think the central bank could end its tightening campaign and start cutting rates before the end of the year.
Average hourly wages, a key indicator of inflation, are expected to increase by 0.3% in the month and 3.9% from the same period last year.
Construction workers are seen at a site in Miami on May 5, 2023. (Joe Radle/Getty Images/Getty Images)
“There's no denying that the process of eliminating inflation is faster and less painful than what Fed officials expected in early 2023,” said Gregory Daco, chief economist at EY. “If progress is sustained, lower inflation will facilitate policy readjustment in 2024.”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| Me: DJI | Dow Jones Average | 37588.96 | +158.77 | +0.42% |
| I:Comp | Nasdaq Composite Index | 14584.430833 | -7.78 | -0.05% |
| SP500 | S&P500 | 4713.65 | +8.84 | +0.19% |
The labor market has remained historically tight over the past year, contrary to economists' predictions of an economic slowdown. Economists say the economy is starting to normalize after last year's breakneck pace, but it is far from a breakthrough.
Another report released on Wednesday showed that: work Aperture The number unexpectedly slowed to 8.79 million at the end of November, the lowest level since March 2021. COVID-19 pandemic It started in early 2020 and the all-time high was 7.6 million people. There are still about 1.5 jobs available for every unemployed American.
Job seekers visit a booth during the Spring Job Fair at the Las Vegas Convention Center on April 15, 2022 in Las Vegas. (KM Cannon/Las Vegas Review Journal/Getty Images)
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Data shows the labor market is cooling in the face of growing headwinds.
“The job market is cooling, as evidenced by the decline in job openings,” said Jeffrey Roach, chief economist at LPL Financial. “The Fed is probably in a good position as it prepares the market for future rate cuts.”
