Another 161,000 New Jobs Added to U.S. Payrolls During October
This signals a solid momentum in the U.S. labor market only days prior to the voters across the nation electing their next president.
Nonfarm payrolls increased by an adjusted 161,000 during October, following an upwardly revised increase for September to 191,000, said the Labor Department on Friday.
The country’s unemployment rate, which comes from another separate survey of households in America, moved downward in October to 4.9% from September’s rate of 5%.
The participation rate for the labor force edged just lower to end October at 62.8% compared to September’s rate of 62.9%.
Economists who were surveyed expected that October would add 173,000 jobs and that the unemployment rate would drop to 4.9%.
One of the report’s highlight’s was that average hourly earnings in the private sector increased in October by 2.8% compared to the same month one year ago, which is the strongest wage growth year over year since June of 2009.
Revisions added over 44,000 new jobs to earlier estimates for payroll in August and September. New hiring during the last three months has averaged over 176,000 a month.
The pace overall for job creation was slower during 2016 averaging 181,000 each month through the month of October versus more than 229,000 for last year.
Gains in jobs took place in most of the sectors in the economy during October though employment dropped in certain industries such as retail trade, mining, logging and manufacturing.
Wages continued their rise as labor tightened and employers had to compete more to hire as well as retain their people.
On average, the hourly earnings for workers in the private sector increased by 10 cents compared to September to end October at $25.92. Economists were expecting an increase of 0.3% during October.
The Labor Department announced that the average workweek during October did not change from that of September.
The report on Friday is the last major indicator of the health of the U.S. economy prior to next Tuesday November 8 the day of the election.
It comes following last week’s Commerce Department report that the economic growth in the U.S. had accelerated during in the third quarter after seeing a modest stretch of quarters from late 2015 to mid 2016.