The Job Market May Have Finally SLowed Down

This week, we received updates on the job market, a higher unemployment rate, and lower wage growth.

As Fed Chair Jerome Powell said during the FOMC meeting, unemployment rates have so far stayed remarkably low at3.8%,even during the highest interest rates in 22 years. Friday, we learned the unemployment rate for October rose 0.1% to 3.9%.

Non-farm payrolls also came in Friday, showing just 150k workers were added compared to estimates of 180k. Wage data also showed a slower increase than projected, at 0.2% compared to 0.3%. Thursday, the Department of Labor estimated there were 217k newly unemployed workers in the U.S., otherwise known as initial jobless claims. The amount was slightly above the forecast 210k and last week's 212k.

The data demonstrates a marginal labor market slowdown, cementing the Fed's decision to keep rates where they are. Economists don't see rates lowering any time soon, as other macro data at the end of October demonstrated why the economy remains hot overall. Data showed a 4.9% GDP growth rate so far in the third quarter and a PCE price index that showed a 3.4% inflation rate.

Mooers, How has the strong labor market affected your trading?

View disclosureshere.