U.S. October Payrolls Expected to Rise by 65,000 Jobs
Economists project U.S. nonfarm payrolls will increase by 65,000 in October as wage growth slows and businesses shift investment toward artificial intelligence.
Economists surveyed by Reuters expect U.S. nonfarm payrolls to increase by 65,000 jobs in October, a recovery from the restricted gain of 29,000 recorded in September. The unemployment rate is projected to hold at 4.2% or potentially decrease to 4.1%.
Annual wage growth is forecast to drop to 2.9%, marking the first time the rate has fallen below 3% since May 2021. This deceleration suggests the labor market is no longer a primary driver of inflation, which may limit the scope of future interest rate hikes by the Federal Reserve System, though a rate increase is still expected in December.
While current employees maintain high job security, opportunities for recent graduates and job seekers have declined. Businesses are increasingly shifting investments toward artificial intelligence and managing uncertainty stemming from the U.S.-Israel war with Iran. These economic pressures, combined with public anger over the Middle East conflict, contributed to the Republican Party losing control of Congress in recent midterm elections.
