United States payrolls rise more than forecast as wage gains hit 3.1%

Donald Trump

Donald Trump

Nonfarm payrolls rose 250,000 in October from the prior month, Labor Department figures showed Friday, topping the 200,000 median estimate of economists. Employers have now added to their payrolls for a record 97 straight months, and the jobless rate, at 3.7% in October, is holding at its lowest level since 1969.

Sustained labour market strength could ease fears about the economy's health following weak housing data and stalling business spending.

Hurricane Michael, which slammed into the Florida Panhandle and southern Georgia last month, had no discernible effect on the jobs data, the government said.

With just days to go until the crucial 2018 midterm elections, the economy is roaring after adding 250,000 new jobs in October.

Politico noted that Trump, in his campaigning for Republicans, has focused more on immigration and the Central American caravan than the economy. Average hourly earnings rose 0.2 per cent month-on-month and 3.1 per cent year-on-year, up from 2.8 per cent growth in September. Separate Labor Department data released earlier this week showed that salaries in the third quarter were, on average, 2.9 percent higher than last year's. Text "NEWS" to 22840 and always receive verified news updates.

The probability of another 25 basis-point (one-quarter percentage point) rise in the federal funds target, from 2%-2.25% now, at the december 18-19 meeting of the Federal Open Market Committee continues to hover around 75%, according to Bloomberg data.

The labor force participation rate increased by 0.2 percentage point to 62.9 percent in October. Still, October's outsize gain might have reflected, in part, a rebound from September, when Hurricane Florence depressed job growth. The last time this occurred was over a year ago (June 2017).

"Businesses have started relaxing their (hiring) standards", Joel Naroff of Naroff Economic Advisors told USA Today. "If that is the case, those who are hoping for only one or two rate hikes next year may be disappointed".

With relatively few unemployed Americans looking for work, employers are increasingly being forced to bid up wages to poach workers from other employers or retain the ones they have.

The country has 7.1 million job openings, a record high, the Labor Department announced Tuesday.

Online retail giant Amazon.com Inc. announced last month that it would raise its minimum wage to $15 per hour for US employees starting in November. Workers at United States Steel Corp are set to receive a hefty pay rise also.

"Faster wage growth along with a remarkably strong employment report in October will certainly lend some support to the hawks".

Among the rosy employment statistics in Friday's monthly hiring report, one especially shines: Worker wages in the USA are finally taking off.

That is seen supporting the economy through at least early 2019 when gross domestic product is expected to significantly slow as the stimulus from the Trump administration's $1.5 trillion tax cut package fades. Retail payrolls rose by only 2,400 amid declines in employment at gasoline stations and sporting goods and music stores. Although the purchasing managers index for manufacturing fell in October to the lowest level since April, indicating slowing demand, the employment report is an an indication that tariffs on imported aluminum and steel haven't negatively impacted hiring in factories thus far.

Although pay increases can help boost spending and propel the economy's growth, they can also lead companies to raise prices to cover their higher labor costs.

Recommended News

  • Nigeria Drops On Ease Of Doing Business Ranking

    Nigeria Drops On Ease Of Doing Business Ranking

    In the World Bank's Ease of doing business Index for 2019, India rose 23 places to 77th, up from 100th in 2018 and 130th in 2017. As a result, the country significantly improved its global ranking in this area to 53, from 82 previous year .
    Thompson sets 3-point record in rout over Bulls

    Thompson sets 3-point record in rout over Bulls

    This is because the weekend win over the Brooklyn Nets was his seventh straight game tallying five or more 3-pointers. Thompson broke Curry's single game record of 13 made threes, which he did in a game in 2016 against the Pelicans.
    Migrant killed as second caravan, Mexican police clash at Guatemala border

    Migrant killed as second caravan, Mexican police clash at Guatemala border

    The U.S. military has already begun delivering jersey barriers to the southern border in conjunction with the deployment plans. Under the Posse Comitatus Act , federal troops are mostly prohibited from engaging in domestic law enforcement activities.
  • Sri Lanka president summons Parliament amid political crisis

    Sri Lanka president summons Parliament amid political crisis

    At least three more deputies from the TNA, which has 16 in the 225-member parliament, are expected to go over to the Rajapakse. In addition, Wickremesinghe refused to accept his dismissal, claiming to be the country's legitimate prime minister.
    Hulk Hogan Returns To WWE At Crown Jewel PPV In Saudi Arabia

    Hulk Hogan Returns To WWE At Crown Jewel PPV In Saudi Arabia

    He was removed from the WWE Hall of Fame and had not made any appearances with the company over a span of almost three years. Apparently believing it couldn't step away from that sort of money, the WWE announced the show would go on as planned.
    Nearly  300 screened for breast cancer

    Nearly 300 screened for breast cancer

    One of the most common symptoms of breast cancer is the presence of a lump or mass in the breasts, which did not previously exist. Speaking from experience, there really is no easy way to get through having breast cancer and the musts of treating it.
  • Blizzard announces its first mobile-only Diablo game

    Blizzard announces its first mobile-only Diablo game

    The shiny new version of the 2002 classic will include all content from Reign of Chaos and its expansion , The Frozen Throne . You can play as four diverse races, each with their own units, abilities, and champions from the World of Warcraft universe.
    Cricket Betting Tips, Match Prediction and Preview India v Windies 1st T20I

    Cricket Betting Tips, Match Prediction and Preview India v Windies 1st T20I

    The first of the series will be played on November 4 and it will start from 7 pm India time. West Indies captain Carlos Brathwaite said he would have preferred to bowl first as well.
    CIS: Coming caravan both good and bad for Trump

    CIS: Coming caravan both good and bad for Trump

    The official added that verbal orders went out this past weekend to some units and additional written orders are starting Monday. The president announced on Wednesday that he was considering deploying up to 15,000 troops to the U.S.
  • Nintendo announces final two characters of 'Super Smash Bros. Ultimate'

    Nintendo announces final two characters of 'Super Smash Bros. Ultimate'

    That brings the base game's final roster of characters to seventy-frickin'-four, 66 of which you'll unlock as you play. Immediately, Street Fighter's Ken is shown as an Echo Fighter, and Pokemon's Incineroar are joining the fight.
    Donald Trump Snaps At Paul Ryan: 'He Knows Nothing About' Birthright Citizenship

    Donald Trump Snaps At Paul Ryan: 'He Knows Nothing About' Birthright Citizenship

    President Donald Trump talks to the media before leaving to Bedminster, N.J., at the White House in Washington on August 17, 2018. Napolitano, though, said the only way that birthright citizenship can be altered is through a Constitutional amendment.
    Red Dead Redemption 2 Achieves Biggest Opening Weekend in Entertainment History

    Red Dead Redemption 2 Achieves Biggest Opening Weekend in Entertainment History

    The records are sure to continue to break as Red Dead Online releases in public beta sometime in November on PS4 and Xbox One . RDR 2 had the biggest launch ever , after selling something over $725 million in its first three days.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.