The US Labor Department reported on Friday in Washington that the unemployment rate rose in September to 4.2%, up slightly from 4.1% in the previous month. According to the data, businesses in the United States generated approximately 29,000 new jobs outside the agricultural sector. The total number of unemployed individuals reached 7.1 million in September, compared to 7.0 million the month before, while the number of long-term unemployed individuals remained stable at 1.9 million.
These US labor market figures are closely monitored by investors globally. If the labor market remains robust while inflation stays high, the likelihood of interest rate cuts decreases. However, stock market participants would welcome such cuts. This is because low interest rates would make traditional savings accounts less attractive compared to stocks, and it would allow businesses and other participants to obtain cheaper loans.
