Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Jobs Report: The US economy added 128,000 jobs in October

Jobs Report: The US economy added 128,000 jobs in October



US employers added 128,000 jobs in October, according to the Bureau of Labor Statistics in its monthly job report.

Meanwhile, the unemployment rate rose slightly to 3.6%, but for good reason: 325,000 Americans started looking for a job.

Overall, the report was far stronger than expected, beating economists' forecasts of profits in 89,000 jobs. The 40-day GM ( GM ) strike, which took about 50,000 auto workers out of the workforce, was expected to serve as a bigger tightening in the labor market. [19659005] While the October report shows that US manufacturers lost 36,000 jobs last month, BLS commissioner William Beach noted that the decline was largely affected by the strike activity. Now that the strike is over, those jobs are set to rebound in November, PNC chief economist Gus Faucher wrote in a note to clients.

"With good job earnings and solid wage growth, household incomes are increasing, which will increase consumer spending by the end of 201

9 and 2020," he said. "The current economic expansion, already the longest in U.S. history, seems set to continue for at least the first part of next year, despite the resistance of the trade war."

Another highlight was from strong revisions to previous data that show an additional 95,000 jobs were added in August and September together.

The unemployment rate of 3.6% remains almost 50 years. In October the labor market participation rate rose to 63.3%, its highest level since August 2013.

"Really, there's nothing to worry about," writes Thomas Simmons, senior money market economist in Jefferies in a note to clients, "Whatever weakness we see here this month (which is not as weak as it is expected to begin) will be added again to November data.

Although the report was strong, hiring was delayed. in 2019 compared to 2018, an average of only 167,000 jobs per month versus 223,000 last year Considering that the United States is in its longest economic expansion in history, these numbers are solid. SPX ) advanced 0.6%, and Dow ( INDU ) climbed about 150 points, or 0.5

"American companies picked up the pace in October, which suggests the worst may end for the economic slowdown, while the Fed's pause may be appropriate, "says Sal Gutierry, senior and onomist at BMO. [19659010] Earlier this week, the Federal Reserve cut interest rates for the third consecutive month in an effort to stimulate the economy. The central bank acknowledges the risks to US growth, but said the economy as a whole is doing well. The Fed also signals that it will keep interest rates down for the time being.


Source link