Core Viewpoint - The article highlights a significant slowdown in the U.S. labor market, with companies reducing hiring and increasing layoffs, which may provide the Federal Reserve with more room to lower interest rates in the coming months [3][6]. Group 1: Employment Trends - As of October 25, U.S. companies have been cutting an average of over 11,000 jobs per week, indicating a continued slowdown in hiring activity during the fall [3]. - In October, the private sector added 42,000 jobs, reversing a two-month decline, but the latest weekly estimates suggest a gradual deceleration in recruitment [3][5]. - The Challenger, Gray & Christmas report indicated that U.S. companies announced 153,000 layoffs in October, a 183% increase from September, marking the highest level for this period since 2003 [5]. Group 2: Economic Sentiment - The University of Michigan's consumer confidence index fell to 50.3, the lowest in over three years, reflecting rising uncertainty about job prospects and income [5]. - ADP's data shows that job growth in October was primarily in traditional sectors like trade, transportation, and utilities, while professional services and information sectors continued to decline [5]. Group 3: Interest Rate Expectations - Analysts suggest that the Federal Reserve may lower interest rates by 25 basis points at its upcoming meeting in December, with a 63% probability of this occurring according to the FedWatch tool [6]. - The ongoing government shutdown has led to a lack of official employment data, making private sector reports like ADP and Challenger increasingly important for assessing economic conditions [6].