Investors will look to the U.S. labor market on Friday, as war continues in the Middle East
As war rages in the Middle East, investors will turn their attention on Friday, at least temporarily, to a more familiar economic terrain: U.S. employment data.
With the joint U.S. and Israeli attack on Iran last Saturday, events have so dominated market minds that fears of artificial intelligence dispatching millions of white-collar workers to the scrap heap have been pushed into the background.
On Friday, nonfarm payrolls and unemployment figures for February in the United States will bring these concerns back to the forefront for investors and, depending on the details, may also feature prominently on policymakers’ agendas.
According to a Reuters poll of economists, the median consensus foresees a net increase of 59,000 nonfarm jobs last month, less than half the rise in January. The unemployment rate should remain steady at 4.3%.
While it may be too early to see concrete evidence of AI-driven labor market disruption, the employment report will still be closely scrutinized for early signs, including weak job growth or even net job losses, and an untimely rise in the unemployment rate.
Indeed, monthly reports on payroll growth and other labor market indicators such as job openings “JOLTS,” layoff figures, and weekly jobless claims are likely to become focal points of the debate on the AI apocalypse, which questions whether technology will ultimately destroy jobs, demand, and economic growth.
( Context: The article discusses the impact of AI on the labor market and how investors are closely watching the U.S. employment data to gauge its effects. Fact Check: The article mentions fears of AI replacing jobs but also notes studies showing a more balanced view of the situation. )
(Source: Reuters)
