The US jobs market is expected to show symptoms of cooling in May, which would indicate a decrease in the rate of inflation, according to data that will be released on Friday.
According to government figures, payroll growth in the US decreased by less than 200,000, compared to the 370,000 monthly average during the previous year.
US Labor Market Shows Cooling Jobs Market
The Phillips Curve, an economic model for determining how the labor market and inflation interact, predicts that inflation will rise when employment rates rise and vice versa.
Although there are still nearly 2 million more job openings than there were before the pandemic, a different report due next week is expected to show the fewest new positions.
According to the New York-based news agency, the data is anticipated to reveal evidence of a fall in job vacancies in April, for the fourth consecutive month.
The Federal Reserve Board (the Fed) will be able to learn more from these studies about the effects of tighter credit conditions, higher interest rates, and present persistent concerns.
With the US debt limit situation remaining unresolved and the economy being burdened by increased interest rates, a lot is on the line.
The Federal Reserve has increased interest rates by almost 5% since March 2022.
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Key Economic Indicators
Additionally, in the north, Statistics Canada will release the first quarter’s gross domestic product, which will give important clues about whether the economy is slowing down enough for the Bank of Canada to keep rates constant next month.
Investors may pay attention to statistics indicating a slower rate of inflation in the eurozone, polls of Chinese purchasing managers, and numerous GDP reports.
In the region, the Chinese purchasing-manager indexes will be notable. Economists think that the official PMI will show a little improvement in manufacturing on Wednesday, while the non-factory gauge’s rapid expansion will decrease.
The Central Bank’s observers may find the April inflation rate for Australia, which is expected on the same day, to be crucial.
Although some analysts believe it will continue to grow at the same rate or possibly slow down, the median prediction is for a modest uptick to 6.4%.
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