Cooling Labor Market Dampens Pay Hikes
- 143,000 new jobs added in September according to ADP
- Sixth consecutive month of employment gains below 200,000
- Yearly pay increases for job switchers decreased from 7.3% to 6.6%
- Construction, leisure and hospitality, and healthcare sectors saw most growth
- ADP report only tracks private-sector hiring
- Economists predict 150,000 jobs in September BLS report
- Labor market cooling leads to slower wage increases
The latest ADP report reveals a higher-than-expected 143,000 new jobs added in September, marking the sixth consecutive month of employment gains below 200,000. This indicates a significant cooling of the labor market. Yearly pay increases for job switchers dropped from 7.3% to 6.6%, while the gap between job switchers and job stayers’ wage growth narrowed to 1.9%. The construction, leisure and hospitality, and healthcare sectors experienced the most growth. Economists predict a 150,000 jobs in the upcoming BLS report.
Factuality Level: 8
Factuality Justification: The article provides accurate information about recent job numbers and trends in the labor market, citing relevant sources such as ADP’s report and including expert opinions. It also discusses the impact of the Federal Reserve’s actions on interest rates and the economy. The only potential issue is the mention of an ‘intensifying conflict between Israel and Iran,’ which may not be directly related to the job numbers, but it does not significantly affect the overall factuality level.
Noise Level: 4
Noise Justification: The article provides relevant information about job growth and wage increases in the US labor market, with some insights into the current economic situation. However, it includes a brief mention of an unrelated topic (conflict between Israel and Iran) that may not be directly related to the main theme.
Public Companies: ADP (ADP), E*Trade (ETFC), Dow Jones Industrial Average (DJIA), S&P 500 (SPX)
Key People: Nela Richardson (Chief Economist of ADP), Chris Larkin (Managing Director of Trading and Investing at E*Trade)
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses job growth, wage increases, and their impact on the Federal Reserve’s decisions regarding interest rates, which directly affects financial markets and companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in this article. The focus is on the labor market and job growth.
Move Size: No market move size mentioned.
Sector: All
Direction: Up
Magnitude: Medium
Affected Instruments: Stocks
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