Instant view: US job growth smashes expectations, raising prospects for rate hikes

November 22, 2023

(Reuters) - U.S. job growth surged in September, suggesting that the labor market remains strong enough for the Federal Reserve to raise interest rates this year, though wage growth is moderating. What this does is continue to increase the fears that higher interest rates are going to slow the economy." "It really feels like the labor market is flat lining overall and to see over 300,000 jobs created is just a big surprise." "Reality is the labor market is going to continue to slow down our view and in the months ahead, but the economy is not (that) terrible." "Clearly the labor market remains resilient, and continues to impress, despite 500bp of tightening over the last 18 months."