Washington (United States) (AFP) – Employment in the United States grew by 165,000 jobs in October, far exceeding analysts’ expectations, with the unemployment rate dipping to 4.1 percent, government data showed on Friday. The relatively stable labor market has allowed the US Federal Reserve — which has a dual mandate to maintain inflation at a long-term two-percent target while ensuring maximum employment — to make fighting stubbornly high prices its priority. The strong October data could add to pressure for further rate hikes. That would put the Fed at odds with President Donald Trump, who has repeatedly called for lower borrowing costs and responded to the central bank’s rate hike in September by demanding: “LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!”
Analysts had expected 65,000 new jobs and the unemployment rate to hold at 4.2 percent, according to a consensus forecast from Briefing.com. White House National Economic Council Director Kevin Hassett hailed the figures, telling CNBC: “We’re now looking at the last three months of really runaway job growth.” “The data right now are singing a beautiful song, and I expect that the momentum from that is going to continue,” he said. The Bureau of Labor Statistics (BLS) also revised up job figures for August and September by a combined 84,000 jobs, the department said in a statement. The revision to September’s data showed that the world’s largest economy added 60,000 jobs that month, as opposed to 29,000 as previously reported.
“This is a strong report and a real sign of momentum in the labor market,” said Ger Doyle, North America regional president at staffing firm ManpowerGroup. “Demand is clearly picking up in parts of the economy, but we need to see it spread into more industries and create more opportunities for workers before we call this a broader hiring recovery,” he added. The data comes days after midterm elections in which the cost of living weighed heavily on voters. October’s gain was well above the average monthly increase of 48,000 over the prior 12 months, the BLS said.
Professional and business services led the gains, adding 70,000 jobs, far above the sector’s average monthly gain of 15,000 over the past year. Health care added 42,000 jobs, above its average monthly gain of 31,000 over the last year. The sector has propped up the labor market in the United States in the last year, as an aging population requires more care both in hospitals and at home. Transportation and warehousing added 25,000 jobs, mostly among couriers and messengers, while manufacturing added 19,000 jobs, the data showed. Employment in other major sectors, including construction, retail, financial activities, and government, was largely unchanged.
Average hourly earnings for all employees were up 3.1 percent over the past 12 months, the BLS said, with wages continuing to lag behind stubbornly high inflation, meaning most workers are seeing real wage losses. Raising interest rates tends to cool inflation but can also limit economic activity, which can affect the job market.
© 2024 AFP
