The U.S. job market in October showed a slowdown, which has people talking about whether the Federal Reserve will be less strict about controlling inflation. Charles-Henry Monchau, who works at Syz Group, talked about this on LinkedIn in early November 2023.
Syz Group is a family-controlled private bank in Switzerland that stands on a strong financial foundation. They have different parts of their business, like Banque Syz, which is a private bank; Syz Asset Management, which deals with investments; Syz Independent Managers, which helps other investment managers; and Syz Capital, which lets people invest in unique markets.
Monchau looked at a report from the Labor Department and saw that fewer jobs were added (150,000) than expected (170,000) according to Dow Jones.
He also pointed out that the United Auto Workers strikes had a big impact on job numbers, especially in the manufacturing sector. This caused the unemployment rate to go up to 3.9%, which was higher than expected (3.8%). Monchau mentioned the household survey, which showed that 348,000 people lost jobs, and 146,000 more people were unemployed.
Monchau also talked about a broader measure of joblessness, which includes discouraged workers and people with part-time jobs because of economic reasons. This measure went up to 7.2%, showing a 0.2% increase, which gives a bigger view of the job market’s health. The survey also found a big decrease in employment, with 348,000 jobs lost in October.
Monchau said that the dollar got weaker, and bond yields dropped, which matches what many investors are thinking: that the Federal Reserve might soon stop raising interest rates aggressively. This is because of what he called “VERY disappointing US jobs data,” which makes people think the Federal Reserve might ease up on its strict anti-inflation actions.
