U.S. labor markets show positive sign

In September, the number of job openings in the United States shown a sign of improvement as it increased by 3.7% and stood at 5.5 million, the U.S. Bureau of Labor Statistics reveals. 

Similarly, the number of hires increased marginally in September and stood at 5.0 million. The hires rate grew at 3.5 percent in the month. The employment rate is expected to grow marginally, but it will not cause the unemployment rate to increase.

"Given our macro forecast, which includes the unemployment rate falling below 4.0% in mid-2017, modest further appreciation in the dollar, inflation expectations anchored at 2.0%, and a modest pickup in productivity growth, we forecast that the Employment Cost Index will reach 3.0% q/q saar in 2016 and 3.5% by Q4 2017", says Barclays in a research note.