Goldman Sachs: US Non-Farm Payrolls Drop About 50,000 in October, Marking 2020’s Largest Decline Amid Rising Layoffs

According to Goldman Sachs‘ latest note, the US non-farm payrolls reading for October signals a pronounced slowdown in the labor market. The firm’s employment growth tracker eased from roughly 85,000 in September to about 50,000 in October, with ongoing headcount reductions weighing on the payroll figure. The release underscores a softer labor market trajectory, particularly as markets reassess the pace of labor demand amid macro headwinds.

As investors parse the October data, the trajectory of payrolls will influence expectations for economic resilience and policy normalization. A softer payroll print can temper near-term wage growth projections and shape risk sentiment for crypto and other high-beta assets. Traders will watch for revisions to the payroll series and central-bank commentary to calibrate hedging strategies and asset allocation in a cautious macro backdrop.