Job growth stayed solid last month in the US, and wages increased significantly. This shows that the biggest economy in the world will have to work hard to keep prices from going up even more.
Employers added 263,000 jobs between last year and this year, and the average hourly wage went up by 5.1%.
The unemployment rate remained at 3.7%.
Even though the US central bank was trying to slow down the economy and keep prices stable by raising interest rates, the report was better than expected.
This year, the Federal Reserve raised loan interest rates at the fastest rate since the 1980s. This was done because the rate at which prices are going up, called inflation, is close to a 40-year high.
Analysts have said that the number of jobs would go down because businesses would slow their job growth or cut back because of the higher costs.
But there have been reports of job cuts in some fields, like housing and technology, but a report from the US Labor Department on Friday shows that the job market is still strong.
In November, most people got jobs in bars, restaurants, and health care. Because of this, even industries that were thought to be in trouble, like construction and manufacturing, saw job growth.
Analysts said that might be good news for workers since they were worried that rising interest rates would lead to a painful rise in unemployment.
But they said that solid wage growth would keep pushing prices up, which suggests that the Federal Reserve will keep raising interest rates in the coming months.
Prices are going up faster than wages, even though wages are going up. Last month’s inflation rate was 7.7% because of this. Even though the rate has gone down since June, it is still close to its highest point in the last 40 years. Now, it’s 9.1%.
Morgan Stanley to lay off 1,600 staff
Bank Morgan Stanley will cut about 1,600 jobs, about 2% of its workforce worldwide. As the economy slows, this is like what other big banks are doing.
James Gorman, the CEO of the bank, had already said that they would lose “modest” jobs.
He said that the banking giant expected the cutbacks after a few years of fast growth.
Goldman Sachs is one of the banks in the sector that is cutting jobs and getting ready for smaller bonuses.
Wall Street payouts hit a record high in 2021. But New York City government officials said in October that they will drop by more than 20% this year. The average award in 2021 was more than £205,000, which is about $250,000.
Banking is one of the industries most likely to slow down as central banks worldwide raise interest rates to reduce the demand for loans and ease the pressures driving up prices.
The head of Goldman Sachs, David Solomon, talked about the economy at a conference for bankers on Tuesday.
Most people didn’t think the US economy would do as well as it has because consumers keep spending thanks to a strong job market and money saved during the pandemic.
Read Also: New jobs in October peaked at 261,000
But prices that go up quickly make it hard for people and businesses to save money. On Tuesday, Jamie Dimon, JP Morgan Chase’s CEO, told CNBC that this could hurt the economy.
In the past few weeks, Credit Suisse said that, as part of a more extensive restructuring. It planned to cut 9,000 jobs over the next three years. People say that Barclays and Citigroup are also making cuts.
Since Morgan Stanley has bought other businesses in the past few years. It had about 82,000 employees worldwide at the end of September, up from 75,000 a year earlier.
