As reported by Reuters, median market forecasts are anticipating a healthy uptick in reported jobs, as well as wage increases, which could spur the US Federal Reserve to even more rate hikes in the near future.
Key quotes
“U.S. job growth likely rebounded in October, with wages expected to have recorded their largest annual gain in 9-1/2 years, pointing to further labor market tightening that could encourage the Federal Reserve to raise interest rates again in December.
The Labor Department’s closely watched monthly employment report on Friday is also expected to show the unemployment rate steady at a 49-year low of 3.7 percent. Sustained labor market strength could ease fears about the economy’s health following weak housing data and stalling business spending.
Average hourly earnings are forecast rising 0.2 percent in October after advancing 0.3 percent in September. This would boost the annual increase in the wages to 3.1 percent, the biggest gain since April 2009, from 2.8 percent in September.
Strong annual wage growth would mirror other data published this week showing wages and salaries rising in the third quarter by the most since mid-2008. Hourly compensation also increased at a brisk pace in the third quarter.
The Fed is not expected to raise rates at its meeting next Wednesday, but economists believe strong labor market data could see the U.S. central bank signal an increase in December. The Fed raised borrowing costs in September for the third time this year.”
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