Boston real estate news: Fed economic outlook

The payroll report for October showed a noticeable slowdown in job creation – with 150K new jobs added, which is below the expectations of 180K, and well below September’s 297K. This is also the second lowest number for the last 12 months, behind June’s 105K.

The unemployment rate has increased to 3.9%, which is the highest number over the last 12 months, and above the Fed’s target of 3.8% for 2023. Thus, the labor market is gradually weakening.

The average hourly earnings for October grew at 0.2% over September, which is below the consensus estimate of 0.3%, and below the September number of 0.3%. Thus, the wage inflation pressures are easing as well. However, note that the average hourly earnings are still up 4.1%, which is still elevated, but still the lowest number over the last 12 months.

Overall, the labor report for October is showing a weakening labor market, and easing inflationary pressures – and that is starting to look like a soft landing.

When you put this in context over the last 12 months, the wage growth slowed from 9% in October 2023, and the unemployment rate increased from 3.4%. The labor market was clearly tight and inflationary – indicating a booming hot economy, and it looks like the economy is slowing.

Updated: Boston condo for sale website 2023