On Friday, the US Labor Department announced that the unemployment rate in the country rose to 3.7%, which is still close to 50 year low. The Federal Reserve recently increased interest rates once more in an effort to reduce inflation and slow down investment, a move that economists and the Fed expect would eventually cost employment.
According to the closely supervised employment report released by the Labor Department, nonfarm payrolls climbed by 261,000 last month. Data for September were updated to reflect 315,000 new jobs rather than the previously reported 263,000.
The report also further stated that, there were 10.7m job openings in the US in September, close to two jobs for every person looking to work and up from 10.3m in August.
Because businesses have been replacing workers who would have gone, job growth has remained strong despite a decline in domestic demand and an increase in borrowing prices. However, with recession threats rising, this practice may soon come to an end.
According to a poll released by the Institute for Supply Management on Thursday, some businesses in the services sector “are holding off on backfilling open positions” because of the unstable economic situation.
- Federal Reserve
- interest rate
