U.S. Employment Report will probably demonstrate certain cooling of job market

Updated information on the U.S. job market is to be given this Friday, and it’s suggested to demonstrate a weaker job growth. A decline in this indicator is the result the Fed’s officials are seeking in their attempts to hold back inflation.

According to forecasts, the anticipated growth in employment would be by around 200,000 in the current month. Thus, November would become the second month of decelerating growth. Such a pace is considered moderate, although it still implies steady hiring that creates an environment for further rate hikes next year. The expected employment report is going to be the last one of this type on the eve of the final policy meeting the Federal Reserve system will have this year.

A statement from Fed Chair Jerome Powell is another highly anticipated event of this week. On Wednesday, Powell is going to share his view on the economic situation at a Brookings Institution event, which might serve as a good source of clues for investors of what to expect next in monetary policy and when the rates will reach their peak.

Returning to the employment report, a slowdown in average hourly earnings growth is also forecasted to be shown. According to the Bloomberg survey, the median assessment of this indicator suggests a 4.6% growth. In case this forecast comes true, this will be the lowest level since August last year, which would prove that Fed’s officials are going in the right direction. The rate of unemployment is projected to be at the level of 3.7%. This figure is just slightly higher than a fifty-year low.