US Labor Market Shows Strain as Hiring Slows Amid Economic Uncertainty

US job growth remained sluggish in September, hovering NEAR 2021 highs as companies scaled back hiring amid rising import costs and economic uncertainty. A potential federal shutdown looms, threatening to delay critical labor market data that could reveal whether unemployment is poised to rise further.

The Federal Reserve responded to mounting job market pressures with its first rate cut of 2025, while markets anticipate further easing after the October 29 meeting. August's job vacancy figures—expected to show a decline to near three-year lows—will be closely watched alongside upcoming ISM manufacturing and services data.

North of the border, the Bank of Canada prepares to disclose deliberations behind its recent rate decision, potentially signaling additional cuts. Global investors remain attuned to inflation trends in Europe and India's anticipated policy easing, with the RBI projected to cut its repo rate to 5.25% following the Fed's move.