- US Adds 250,000 Jobs in October, Wage Growth Rises 3%
The strong labor market continued to aid US job creation in October as companies created more jobs than expected.
The data released by the Labor Department on 2nd of November showed US companies created 250,000 jobs in October, more than the 190,000 jobs projected by economists.
The unemployment rate remained at 3.7 percent, the lowest since 1969.
“The job market is doing remarkably well, particularly this late in the expansion,” said Jim Baird, partner and chief investment officer for Plante Moran Financial Advisors. “This report adds yet another data point to a narrative that has been positive for the labor market this year. Little seems to stand in the way of the economy finishing 2018 out on solid footing.”
Positive economic growth coupled with the tax cut is aiding U.S. labour market despite global trade tensions.
The total number of employed people rose to a fresh record of 156.6 million, while the employment to population ratio increased to 60.6 percent, the highest since December 2008. Suggesting that companies are starting to attract skilled labour with higher wages.
Since recovery, wage growth has remained sluggish. However, in October average hourly earnings climbed 5 percent and rose by 83 cents year on year to 3.1 percent. The highest annual increase since 2009.
Despite aligning with Federal Reserve’s projection, that full employment would aid wage growth going forward, the fear now is possible fall in business profits as the cost of production jump.
September number was revised down from 134,000 previously reported to 118,000. However, August’s number was revised upward from 270,000 to 286,000. Bringing average yearly job creation to solid 211,000 per month.
The US dollar gained against the Euro single currency to trade at 1.1322.
