Nonfarm payrolls: 271K, vs expected 180K; Unemployment rate 5%

[mystery-ak]

http://www.cnbc.com/2015/11/06/nonfarm-payrolls-271k-vs-expected-180k-unemployment-rate-5.html

Nonfarm payrolls: 271K, vs expected 180K; Unemployment rate 5%
Jeff Cox   | @JeffCoxCNBCcom
3 Mins Ago



This is a breaking news story. Check back here for updates.

Job growth surged in October, rebounding from a late-summer slowdown that raised concerns about whether global slowness was infecting the U.S.

The Bureau of Labor Statistics reported Friday that nonfarm payrolls grew 271,.000 for the month, a sharp jump from weak August and September numbers. The headline unemployment rate declined to 5.0 percent.

A broader measure of unemployment that includes those who have stopped looking as well as those working part-time for economic reasons declined to 9.8 percent, the first time it's been below 10 percent since May 2008.

Perhaps more important than the headline number was the growth in average hourly earnings, which jumped 9 cents an hour, representing an annualized gain of 2.5 percent. The average work week remained at 34.5 hours.

The labor force participation rate remained at a generational low of 62.4 percent, though the decline in the total labor force slowed a bit. There were 97,000 fewer Americans counted as not in the labor force, a number that remains near record highs at 94.5 million.

The Federal Reserve watches the monthly number closely for clues about both the strength of job creation and inflationary pressures, particularly from wage growth. The U.S. central bank has been saber-rattling for months regarding interest rate hikes but has yet to pull the trigger amid uneven economic data.

In recent days, Fed officials have insisted that December is on the table as a possible liftoff point for the first funds rate hike in nine years. Heading into the payrolls report, traders were pricing in a 58 percent chance of a hike next month, and that surged to 72 percent following the payroll report release.

Economists polled by Reuters expected the nonfarm payrolls report to show 180,000 new jobs added in October, with the unemployment rate steady at 5.1 percent. That compares to the September number of 137,000, which was revised down from 142,000. August's number got pushed up from 136,000 to 153,000.

Professional and business services led sector gains with 78,000 new jobs. Administrative and support services added the most of the group with 46,000 jobs. Health care grew by 45,000 workers, retail added 44,000 and restaurants and bars increased by 42,000.

Construction also added 31,000 workers, though the mining sector lost 5,000 jobs.

[kevindavis007]

I wonder how many people is no longer looking.

[mountaineer]

Stephen Moore explains at Freedom Works:

Following the Bureau of Labor Statistics’ release of the October jobs report, FreedomWorks Senior Economic Contributor Stephen Moore commented:

“Today’s jobs report is a big improvement over the lousy last six months. And it’s a positive sign that wages rose. But there are still reasons to be concerned about the state of the economy. The labor participation rate remains stalled at its lowest point in decades and the number of long-term jobless ticked up. The biggest fall in employment under Obama has been of young people, which is very troubling for the future.”

“What’s more, gross domestic product grew at a marginal pace in the third quarter, rising only 1.5 percent. What remains to be seen is consistency. The severe lack of pro-growth policies has held growth $2 to $3 trillion below where it normally would be in a recovery.”