U.S. job creation slowed to 261,000 --- but it's still too strong for the Fed

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The economy gained surprisingly strong 261,000 new jobs in October, underscoring the persistent strength of a labor market that the Federal Reserve worries will exacerbate high inflation.

The numbers: The U.S. economy gained a surprisingly strong 261,000 new jobs in October, underscoring the persistent strength of a labor market that the Federal Reserve worries will exacerbate high inflation.Although the increase in hiring was the smallest since April 2021, it was still historically strong. The U.S. added an average of 200,000 new jobs a month in the five years before the pandemic.

“ “This actually makes a recession more likely because it means the Fed is going to keep raising rates.” ” Rising interest rates slow the economy and sometimes trigger recessions. Many economists predict a downturn is likely by next year. Powell himself admitted the odds of avoiding a recession have fallen due to persistently high inflation.

Another potential pressure valve for the economy showed little progress, however. The so-called participation rate — or share of working-age people in the labor force — dipped to 62.2% from 62.3%.

 

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I doubt it and if true then its all entry level jobs that dont pay much

Unfortunately the labor force participation rate also decreased.

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Economy beats expectations with 261,000 jobs in October, unemployment at 3.7%The economy added 261,000 jobs in October, more than expected, a sign of resilience in the face of the Federal Reserve's interest rate hikes and a boost for President Joe Biden and Democrats just ahead of the midterm elections. Fake report Yep... if you set your expectations low enough... WINNER!!
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