Economic figures indicate that the Federal Reserve is currently monitoring both inflation and the job market. According to the latest policy statement released on Thursday, officials have highlighted that the risks associated with the job market deteriorating and inflation reaccelerating are currently of similar magnitude.
In recent months, there has been a shift in focus towards the health of America's labor market, which, although still in decent shape, has experienced a noticeable loss of momentum over the past year. Data from the Labor Department reveals that in September, employers had approximately 7.4 million seasonally adjusted job openings, a significant decrease from the 9.3 million reported in the same month the previous year. Additionally, the hiring rate dropped from 3.7% to 3.5% during the same period.
As of October, the unemployment rate stood at 4.1%, showing an increase from 3.8% recorded a year earlier, although it remains at a historically low level. Worker filings for ongoing unemployment benefits also rose last week to the highest level since November 2021, indicating the increasing difficulty faced by unemployed individuals in securing new employment opportunities. The Federal Reserve officials noted in their statement that 'labor market conditions have generally eased since earlier in the year.'
