The United States is gearing up for a crucial jobs week, with the Bureau of Labour Statistics set to release its monthly employment report on Friday. Forecasters anticipate a significant increase in job growth, doubling to 65,000 in October, while the unemployment rate is expected to remain steady at 4.2%. This data could reinforce the Federal Reserve's plans for additional interest-rate hikes to combat inflation.
Other labour-market indicators, such as job openings and weekly jobless claims, will also be closely watched. Economists note that while job losses are slowly climbing, there are no signs of mass layoffs yet. Bloomberg Economics analysts Anna Wong, Andrew Sacher, and Eliza Winger describe the current labour market as losing momentum but not breaking.
Canada will also release its jobs numbers on Friday, with economists expecting the unemployment rate to stay around 6.5%. The country shed 68,300 jobs in the previous month, indicating a soft labour market. Additionally, Canada's Finance Minister Francois-Philippe Champagne will unveil the federal budget on Thursday, aimed at stimulating economic growth amid ongoing trade tensions with the United States.
Globally, central banks in the United Kingdom, Australia, and Brazil are expected to make rate decisions, while key economic data from Europe and Asia will also be in focus. South Korea's exports, purchasing manager indexes, and housing figures from Australia are among the highlights for the week.