Fed surveys point to cooling in job market

Employers in the country anticipate hiring fewer jobs in 2024, according to surveys conducted by the Fed’s regional governments across the U.S. Employers in the country anticipate hiring fewer jobs in 2024, according to surveys conducted by the Fed’s regional governments across the U.S., which is expected to limit wage increases and reduce inflation pressures. The survey results come ahead of December employment data in the U.S., which is expected to show a 170,000-job increase in nonfarm payrolls. Meanwhile, economists expect nonfarm payrolls to increase by an average of 80,000 a month in the first three months of next year, about half the pace of increase in the current quarter. The regional Fed data show that the central bank’s efforts to slow growth and reduce inflation are being reflected in the economy. While the results point to a slowdown, they do not directly mean a contraction in employment. In the Philadelphia Fed district, a gauge of employment expectations is running at one of the weakest levels since 2009, while Dallas Fed surveys show 30% of employers say they are at “ideal” staffing levels.