The PayScale Index, which measures the change in earnings for all employed USA workers, forecasts a 0.6 percent increase in pay for Q4 2015.
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The number of Americans not in the labor force last month totaled 94,513,000 – a slight improvement from the 94,610,000 not in the labor force in September-but the labor force participation rate nonetheless remained at its lowest point in 38 years, with only 62.4 percent of the civilian noninstitutional population either holding a job or actively seeking one.
The new numbers, representing a firm rebound from two weak months, added evidence that the economy is growing solidly despite a global downturn – the number of new jobs was almost double those added in September.
The last time the national unemployment rate for October was almost this low was 2007, when it was 4.7 percent. Nevertheless, because the long-term unemployment rate more than quadrupled as a result of the recession, the declines seen recently are not yet sufficient to return long-term unemployment to pre-recession levels. What might have been a tough decision now looks easy.
Breaking these figures down further, with seasonal adjustment, private sector employment increased by 268,000 during the month of October while government employment increased by 3,000.
Rates set by the Fed serve as a benchmark for lots of other interest rates.
So a December rate liftoff doesn’t sound almost as ludicrous after what can only be viewed as a boffo employment report. We want to hear from you!
Federal Reserve Chair Janet Yellen turned heads earlier this week when she reiterated that December’s Federal Open Market Committee meeting was very much “live” for a potential interest rate liftoff. “Over the prior 12 months, employment growth had averaged 230,000 per month”.
That’s really the key to understanding where the economy is heading.
Series Note: Jobs are one of the most important aspects of a morally functioning economy. This rate is 4.8 percent for October 2015, down from 4.9 percent for September, 5.2 percent for August, and 5.5 percent for October 2014.
It will likely join October’s strong services sector and auto sales data in supporting views that economic growth will regain momentum in the fourth quarter after braking sharply to a 1.5 percent annual pace the July-September period.
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The bad news is that support activities is the Bureau of Labor Statistics’ category that includes many good-paying jobs, such as derrick operators and drill operators.
