'Despite slower job growth, and recent strikes by union workers across various industries disrupting the labor market, we expect the unemployment rate to remain low in the coming months.'Ī report on private employment from payroll processor ADP on Wednesday showed gain of 113,000 jobs for the month, less than the 130,000 jobs that economists expected, according to consensus estimates gathered by Dow Jones. “Today’s soft jobs report shows that the Fed’s interest rate hikes are starting to impact what has been one of the strongest areas of the economy,' said Stephen Rich, chief executive of Mutual of America Capital Management in New York. 'Reducing inflation is likely to require a period of below-potential growth and some softening of employment market conditions,' Powell said.
Powell noted the economy, which grew by 4.9 % in the third quarter, and the still resilient labor market may need to slow.
