U.S. Labor Market Remains Strong Amid Slowdown

WASHINGTON (Reuters) – Last week's jobs numbers confirm the U.S. labor market remains strong even though it may be slowing. The unemployment rate stands at 4.1%, in line with what is considered full employment. Employers continue to add jobs at a pace exceeding population growth, according to Atlanta Federal Reserve President Raphael Bostic.

Bostic noted that the rise in unemployment from last year's lows, which were below 4%, reflects a return to pre-pandemic perceptions of full employment. He stated, "The labor market … is certainly slowed down, but is not slow," while monthly job creation remains "pretty robust."

In September, U.S. employers added 254,000 payroll jobs. Bostic indicated that if job growth declines to under 100,000 jobs per month, he would reconsider the Fed's rate-cutting timeline.

Despite job growth exceeding expectations and prior months' numbers being revised upward, Bostic emphasized the ongoing challenge of inflation, which remains above the target at 2.6%. He reiterated the commitment to reducing inflation to the 2% target, stating, "It's too high … that's still quite a ways to go" and expressed his focus on the inflation target.