The U.S. job market shows signs of stabilization after two consecutive months of decline, but overall labor demand continues to slow, and wage growth remains stagnant, adding uncertainty to whether the Federal Reserve will continue to cut interest rates in December.Automatic Data Processing, Inc. (ADP) released data on Wednesday showing that U.S. ADP employment increased by 42,000 in October, significantly exceeding the expected 30,000, and reversing the previous month's revised decrease of 32,000 (the current revision is 29,000).<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/6fd7205d-6801-43a7-a95c-b594952fb14a.jpeg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/6fd7205d-6801-43a7-a95c-b594952fb14a.jpeg"/>ADP Chief Economist Nela Richardson stated in the report that the hiring scale in October was relatively moderate compared to earlier reports this year. At the same time, wage growth has remained flat for over a year, indicating that the labor supply and demand changes are in a balanced state.However, the recent high-profile layoff plans announced by large companies such as Amazon, Starbucks, and Target are exacerbating market concerns about the employment outlook. Although initial jobless claims remain low overall, there is a risk of deterioration in the low layoff environment, which could push up the unemployment rate in the coming months.After the data was released, the U.S. dollar index saw a slight short-term increase, currently reported at 100.19. U.S. stock futures showed little short-term volatility, with the Nasdaq 100 index futures maintaining a decline of about 0.1%. The yield on the U.S. 10-year Treasury bond rose short-term, currently reported at 4.084%. Spot gold fell short-term by about $5, currently reported at $3964.83 per ounce.<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/a8e1644d-c0f3-4cf5-a82a-258718409220.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/a8e1644d-c0f3-4cf5-a82a-258718409220.png"/><h2>Moderate Employment Growth Reflects Slowing Demand, Large Corporate Layoffs Heighten Market Anxiety</h2>The employment increase of 42,000 in October, while positive, shows a significant slowdown compared to earlier this year. This data aligns with the overall trend of weak labor market demand, leading to cautious hiring activities among businesses.Specifically, in October, the service sector added 32,000 jobs, while the goods-producing sector added 9,000 jobs.<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/9361aa50-6fb0-497c-9374-1f902c91ffbf.jpeg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/9361aa50-6fb0-497c-9374-1f902c91ffbf.jpeg"/>In terms of wage growth, data shows that it has remained stable over the past year, with no significant increase. This reflects that the supply and demand relationship in the labor market has reached a new equilibrium, significantly easing the tensions that existed post-pandemic.Large companies, including Amazon, Starbucks, and Target, have recently announced layoff plans, and these high-profile personnel adjustments have raised concerns about the job market. Although initial jobless claims are still at relatively low levels, analysts worry that the current low layoff environment may shift towards more layoffs, potentially increasing the unemployment rate in the coming months<h2>Doubts About the Federal Reserve's Policy Path</h2>After the Federal Reserve cut interest rates for the second consecutive meeting last week, Chairman Powell stated that he sees the labor market &#34;cooling very slowly, but that's about it.&#34; Powell made it clear that it is uncertain whether the Federal Reserve will cut rates again at the December meeting.The moderate performance of the October employment data provides new references for the Federal Reserve's policy decisions. On one hand, signs of stabilization in the job market alleviate concerns about rapid deterioration; on the other hand, the overall demand slowdown and stagnation in wage growth mean that policymakers need to carefully weigh economic trends in future meetings.Updating

- The U.S. job market shows signs of stabilization after two months of decline, but overall labor demand continues to slow, raising uncertainty about the Federal Reserve's potential interest rate cuts in December.  
- In October, ADP reported an increase of 42,000 jobs, surpassing expectations, yet hiring remains cautious compared to earlier this year, with wage growth stagnating.  
- Major layoffs from companies like Amazon and Starbucks heighten concerns about the employment outlook, despite low initial unemployment claims, suggesting a risk of rising unemployment in the coming months.

Employment stabilization signals! In October, the U.S. ADP added 42,000 jobs, exceeding expectations, while wage growth continues to stagnate