US Labor Market Shows Signs of Cooling Down

The September jobs report is expected to show a continued slowdown in job growth in the US, with nonfarm payrolls projected to rise by 170,000 and the unemployment rate dropping slightly to 3.7%. Wall Street will closely watch these numbers, along with average hourly earnings and average weekly hours worked. Economists anticipate a weakening labor market later in the year due to higher interest rates, tighter lending standards, and reduced consumer spending. The Federal Reserve has indicated that some softening in the labor market is necessary to achieve its inflation target, and a strong jobs report could potentially lead to a rate hike.