3 Things This Economist Is Looking For In Friday's Jobs Report
Ahead of Friday's jobs report, Indeed Inc.'s Chief Economist Tara Sinclair commented on what she is looking for regarding the state of the U.S. job market. Forecasters predict total employment will increase by 190,000 in November with the unemployment rate staying at 5 percent.
The Influence Of Jobs Numbers
Regarding the forecasts Sinclair said, "This is a strong showing in a labor market that only needs about 90,000 jobs growth per month to accommodate new entrants [...] But the assessment of that strength is based on a historically low labor force participation rate of just 62.4 percent.”
Sinclair continued, “We're watching for an increase in the labor force participation both to understand how much growth is really needed as well as how much growth is possible.”
Overall, there are three things Sinclair is looking for in the jobs report: a positive employment increase, an increase in labor force participation and stronger wage growth.
This report is believed to have a sizable impact on the decision of an interest rate hike by the Federal Reserve, as it will give a good indication of the strength of the U.S. economy.
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