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Jobs Report, Unemployment Rate, Participation: 3 Things to Watch

Stock Markets Oct 06, 2022 04:21PM ET
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© Reuters

By Liz Moyer

Investing.com -- Stocks fell again on Thursday as investors held their breath for Friday’s much-anticipated report on jobs for September.

On Wall Street, anxiety is growing over the possibility that the Federal Reserve's aggressive actions to raise interest rates this year will overshoot the mark and take the economy into a recession.

A tight labor market and unemployment rates near multi-decade lows have given the Fed no reason to quit its hawkish stance, even as evidence that the economy is cooling is growing, especially in the housing market and on Main Street, where layoffs are growing.

Jobless claims for last week were slightly higher than expected but not seen as strong enough evidence for the Fed to take its foot off the accelerator. 

Fed officials have beaten the drum this week that the central bank intends to keep going until it deems the job complete. The Fed already signaled last month it is heading for another 125 basis point increase this year.

Here are three things that could affect markets tomorrow:

1. Jobs for September

The jobs report comes out at 8:30 ET (12:30 GMT). Analysts tracking it expect the economy added 250,000 jobs last month, which would be down from 315,000 added in August.

2. Unemployment rate

The unemployment rate is also expected out at the same time, and analysts expect it to stay the same as the month before, 3.7%. That is an important goal of the Fed’s: cooling off the economy without sparking large job losses. The Fed has pointed to still-high job openings.

3. Participation rate

The labor market participation rate is another measure the Fed watches closely. The reading for August was 62.4% and policymakers would like to see that number rise to ease the tightness of the labor market. August’s reading was the highest since April.

Jobs Report, Unemployment Rate, Participation: 3 Things to Watch
 

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Comments (4)
Vito Tagliano
Vito Tagliano Oct 07, 2022 12:01AM ET
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All three categories should look good, because on the ground I still see Small and Mid level companies are still hiring. In addition, Participation should in full effect in order to catch up with rising Food and Energy prices. Finally, unemployment numbers should go lower due to no more free money from Feds. In my opinion.
James Wills
James Wills Oct 07, 2022 12:01AM ET
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That would be good, but not for the markets.
Thomas Trainer
Thomas Trainer Oct 07, 2022 12:01AM ET
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Jobs data would have to come in at a 100000 for the fed to make any change Estimated it's 250 or 260K
sharif trade teck
sharif trade teck Oct 06, 2022 9:34PM ET
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today mrkt are going to mixed
Shepherd Mwila
Shepherd Mwila Oct 06, 2022 7:53PM ET
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please anyone to help here, I just started my fundamental trading journey, I'm a bit confused with the numbers and colors. looking at Investing.com news release data, the previous is big and the actual is smaller of which we know to say the rate has dropped but we see https://investing.com giving a small number and bullish green color. any help
First Drop
First Drop Oct 06, 2022 7:53PM ET
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don't worry about anything but the forecast and the actual. the previous month will be red if it is higher than the current month actual identifying that current job creation has decreased. it can be confusing so I just ignore the previous and focus on the actual and forecast. since the fed wants to destroy the economy any bad news will be treated by the market as good news in the short term since market traders are hoping the fed will pivot and stop the interest rate increases if they see their desired damage being done. a decrease in job creation is a bad thing but it will be treated as a good thing in this market in hopes of a pivot.
First Drop
First Drop Oct 06, 2022 7:53PM ET
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don't worry about anything but the forecast and the actual. the previous month will be red if it is higher than the current month actual identifying that current job creation has decreased. it can be confusing so I just ignore the previous and focus on the actual and forecast. since the fed wants to destroy the economy any bad news will be treated by the market as good news in the short term since market traders are hoping the fed will pivot and stop the interest rate increases if they see their desired damage being done. a decrease in job creation is a bad thing but it will be treated as a good thing in this market in hopes of a pivot.
Scot House
Scot House Oct 06, 2022 7:53PM ET
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First Drop you are correct but the fed has pounded the desk recently saying they are staying the course with rate hikes.
James Wills
James Wills Oct 06, 2022 7:53PM ET
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yes, but stronger employment data than 'anticipated' will crimp the hopium intake the market has been guzzling like a prossie by a Wendy's dumpster.
Jon Andis
Jon Andis Oct 06, 2022 7:41PM ET
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whoever wrote this article is a complete *****
Ken Smiley
Ken Smiley Oct 06, 2022 7:41PM ET
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And maybe you’re an even more complete one.
Amir Tavakoli
Amir Tavakoli Oct 06, 2022 7:41PM ET
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I am incomplete like cell before he absorbed the androids 17 and 18
 
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