U.S. Payrolls Increased By 150,000 in October, Less Than Expected
The latest labor figures for October show that U.S. payrolls increased by a relatively modest 150,000, significantly less than market expectations of 250,000.
The unemployment rate, however, fell to its lowest level in nearly 50 years, as the Bureau of Labor Statistics (BLS) reported that the rate had dropped to 3.7%. This continues the trend of record-low unemployment rates that have been reported for the past year and a half.
The lack of jobs created, however, isn’t necessarily a bad sign. The BLS reported that wage growth accelerated in October, with average hourly earnings increasing by 0.2% from last month and 3.1% from one year ago. This is the fastest rate of pay growth since 2009, indicating that positive economic conditions are continuing to improve.
Although the number of job gains for October was below expectations, recent labor market data have been encouraging. Other indicators, such as the number of jobs openings and jobless claims, remain well above historical averages. This suggests that ongoing labor market improvements are likely to persist in the near future.
Furthermore, the Feds have recently raised interest rates for the third time this year, indicating that inflation should remain tame in the near future. This will help maintain a healthy job market and hopefully lead to additional job growth.
Overall, the data from October suggests that the labor market is still performing well despite the lack of job gains. If wage growth continues at its current rate and jobless claims remain low, then it’s likely that the labor market will remain robust in the coming months.
U.S. Payrolls Increased By 150,000 in October, Less Than Expected
The latest labor figures for October show that U.S. payrolls increased by a relatively modest 150,000, significantly less than market expectations of 250,000.
The unemployment rate, however, fell to its lowest level in nearly 50 years, as the Bureau of Labor Statistics (BLS) reported that the rate had dropped to 3.7%. This continues the trend of record-low unemployment rates that have been reported for the past year and a half.
The lack of jobs created, however, isn’t necessarily a bad sign. The BLS reported that wage growth accelerated in October, with average hourly earnings increasing by 0.2% from last month and 3.1% from one year ago. This is the fastest rate of pay growth since 2009, indicating that positive economic conditions are continuing to improve.
Although the number of job gains for October was below expectations, recent labor market data have been encouraging. Other indicators, such as the number of jobs openings and jobless claims, remain well above historical averages. This suggests that ongoing labor market improvements are likely to persist in the near future.
Furthermore, the Feds have recently raised interest rates for the third time this year, indicating that inflation should remain tame in the near future. This will help maintain a healthy job market and hopefully lead to additional job growth.
Overall, the data from October suggests that the labor market is still performing well despite the lack of job gains. If wage growth continues at its current rate and jobless claims remain low, then it’s likely that the labor market will remain robust in the coming months.
