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Job market resilience continues despite Federal Reserve's inflation measures

EditorOliver Gray
Published 02/11/2023, 01:58
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The US job market remained resilient in September, with job openings rising to 9.6 million from August's 9.5 million, despite the Federal Reserve's efforts to manage inflation and temper the job market. This figure is lower than the record 12 million job openings in March 2022 but surpasses pre-2021 levels when openings never topped 8 million.

Layoffs dropped to 1.5 million from August's 1.7 million, further demonstrating the strength of the job market. The unemployment rate held steady at 3.8%, slightly above a historic low, highlighting an impressively robust labor market by historical standards.

The Federal Reserve has hiked its benchmark interest rate 11 times since March last year in response to four-decade-high inflation. This has resulted in a year-on-year rise in consumer prices by 3.7% in September, exceeding the Fed's 2% target but falling from June's peak of 9.1%.

In an attempt to achieve a 'soft landing', the Federal Reserve aims to raise rates just enough to keep price increases in check without inducing a recession. It is expected to leave its benchmark rate unchanged for the second consecutive meeting while assessing the impact of its measures.

The Labor Department and FactSet project October's jobs report to reveal a solid addition of approximately 189,000 jobs while maintaining unemployment at 3.8%. An employee at Hanwha Qcells Solar plant represents the current labor market conditions, further emphasizing the resilience of the US job market amidst ongoing economic challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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