The nation gained 271,000 jobs last month, following an increase of 137,000 in September, Labor Department data showed.
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The rebound in hiring in October was driven almost entirely by companies that offer services such as software design, banking, health care, shopping and eating out. “It could provide a real boost to the economy if we get more wages in the hands of households”.
From the BLS data, 24.5 million Latinos were employed in October, which is an increase from the 24.4 million in the previous month. The strong dollar and faltering growth in China, Europe and Japan have cut into exports of factory goods.
126-a-09-(John Silvia, chief economist, Wells Fargo, in AP interview)-“at two percent”-John Silvia, who’s the chief economist at Wells Fargo, says not only did the unemployment rate fall to a fresh seven-year low of 5 percent, wages are up”.
The reaction in financial markets was swift and sharp. Their comments follow encouraging words by Fed chair Janet Yellen and other Fed officials this week, who all stressed that a rate hike at their next meeting on Dec. 15-16 is a distinct possibility.
Steven Ricchiuto, chief economist at Mizuho Securities USA, wrote clients that he remains concerned that the U.S. will import deflation from abroad as the dollar strengthens. A measure of service-sector activity and employment, along with online job ads, rose last month. Mining and forestry jobs pay more than 20% better than average, but employment in these sectors continues to decline as resource prices slide.
Job growth surged in October, rebounding from a late-summer slowdown that raised concerns about whether global slowness was infecting the U.S.
Payroll reports for October and November are deemed critical to the Fed’s decision, especially after job gains fell recently from their monthly average of 200,00-plus for most of 2015.
He said, “It’s very likely [the Fed] is going to raise rates in December”, possibly by a quarter of a percentage point. The odds are calculated from action in the fed funds futures markets. The US Federal Reserve will finally take the plunge and raise interest rates when it meets again just before Christmas.
Economists had forecast nonfarm payrolls increasing 180,000 last month and the unemployment rate remaining at 5.1 percent.
Locally, the transportation and warehousing sector was up by 2.6 percent over the year in September while employment in the local wholesale trade industry rose by 3.2 percent over the year. The indicator also accounts for workers who are no longer looking for a job, but have looked for one over the last 12 months.
Speaking on CNBC after the numbers released, Federal Reserve Bank of Chicago president Charles Evans suggested that the strong earnings numbers would weigh in favor of the Fed tightening monetary policy.
The labor market as a whole, however, is still the healthiest it’s been in years.
Another great nugget for the American economy from this job report is the spread of employment gains in October.
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“The employment report had everything you could have asked for”.
