The US job market is a major concern amid the extended government shutdown, leaving investors and officials without crucial data on hiring trends. Private data indicates a labor market slowdown, with layoffs rising and confidence waning. Companies like Target and Amazon have announced significant layoffs, pointing to a less dynamic job market.

Despite private data showing a modest job gain in October, layoffs have surged this year, with over 1.1 million announced so far. Layoffs are predominantly in tech and retail sectors, signaling a cautious job market where workers are less likely to change roles. Consumer sentiment hit a three-year low in November, reflecting economic unease.

The shutdown has hindered policymakers’ ability to assess the labor market accurately, leading to uncertainty. The Federal Reserve may consider rate cuts in response to weakening labor market indicators, with markets pricing in a 70% chance of a December cut. The economy faces challenges from rising inflation and a slowing labor market, worsening the wealth divide.

Read more at Yahoo Finance: What private data says about America’s job engine