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October jobs growth surprises

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October jobs growth surprises

271,000 jobs created, well above estimates.

Total nonfarm payroll employment rose by 271,000 in October, and the unemployment rate ticked down to 5.0%, the U.S. Bureau of Labor Statistics reported today.  This follows two months of anemic jobs growth in August and September.

Consensus estimates had expected an increase of 180,000 new jobs.

Job gains occurred in professional and business services, health care, retail trade, food services and drinking places, and construction.

Consensus estimates had expected an increase of 180,000 new jobs.

The historically low employment participation rate remained at 62.4%, its lowest level since October 1977. The number of unemployed persons remained unchanged at 7.9 million. In October, average hourly earnings for all employees on private nonfarm payrolls increased 9 cents to $25.20, and average hours worked per week remained at 34.5 hours. The strong October results may play a major factor in the timing of the Fed’s decision to raise interest rates.  Fed Chair Janet Yellen has indicated that a December hike may be in the cards, and today’s jobs report does nothing to undermine that expectation.

The full report can be found here.

 

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