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Why markets want more unemployment

Yahoo Finance's Rick Newman discusses the September jobs report and why markets are rooting for the labor market to cool in this week's Bidenomics report.

Video Transcript

[AUDIO LOGO]

- Welcome back. This week in Bidenomics, Rick Newman is focusing on jobs, specifically unemployment, that rate. Rick, your take on the morning's numbers here. Good to see you.

RICK NEWMAN: I'm just gonna say what everybody's thinking. We need fewer jobs. We need a higher unemployment rate. All the analysis I'm seeing about the September jobs rate says, basically, aw shucks, we thought-- we were hoping unemployment would go up, and we thought the jobs number would be lower.

And why does everybody want that to happen? So the Federal Reserve has a reason to slow down its interest rate hikes. But with 263,000 new jobs-- slower than we've seen earlier this year but still pretty strong, very tight job market-- everybody now is almost certain the Fed's gonna hike another 75 basis points or 3/4 of a point in November.

So, you know, puzzle this one out. We get a pretty good jobs report, and the stock market falls by nearly 2%. That's the kind of fun house economy we're in. I think a lot of people just wish-- could we get through the slowdown in the job market we need to get inflation under control and get to the other side of this? We're just not there yet.