News Digest: US labor market shrugs off recession fears
December 5, 2022
For the first time in the past few months, employers in the US hired more workers than expected in a month and also increased wages. The strong job growth numbers for November indicates a thawing of recession fears.
However, the US Labor Department’s report released early in December revealed non-farm payrolls grew by 263,000 while data for October was revised higher to show a rise of 284,000 instead of the previously reported 261,000. A monthly job growth of 100,000 is what is required to keep pace with the growing labor force.
As for the Fed, its monetary policy path through the first half of 2023 will depend on labor market tightness. A matter of concern would be the decline in household employment for a second straight month, though the unemployment rate was unchanged at 3.7%.