US adds 250,000 jobs in October; unemployment rate steady

US adds 250,000 jobs in October; unemployment rate steady

The economy also added 250,000 jobs last month, beating expectations, while the jobless rate remained at 3.7%. The unemployment rate remained unchanged at 3.7 percent in October-the lowest it has been in nearly 50 years. Economists had been expecting fewer new jobs after the slowest growth so far this year was recorded in the previous month. September's payrolls were depressed by the hurricane that hit the southeast US that month; those numbers were revised down to a gain of 118,000 from 134,000 originally estimated. That's the first time wage growth has crossed the 3 percent mark since April 2009, when the economy was reeling from the housing crash.

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

The country now has 7.1 million job openings, a record high, the Labor Department announced Tuesday. That suggests, he said, that the wage increases are not just a product of a tightening job market, which would have boosted inflation, but are based on a solid footing of increasing productivity. The Standard & Poor's 500 index.SPX dropped 6.9 percent in October, the biggest decline in seven years.

Most of the net new jobs in October came from health care, construction, and manufacturing, which has added 296,000 jobs over the past year. Kevin Hassett, chairman of the White House's Council of Economic Advisers, said on Bloomberg Television that "we're seeing the wage growth that everybody said was impossible".

Stock futures rose on Friday after the release of the report.

Online retail giant Inc. announced last month that it would raise its minimum wage to $15 per hour for US employees starting in November.

The number of people working or looking for a job increased by 711,000, nudging the labor force participation rate up to 62.9 percent, from 62.7 percent in September. And so far, inflation remains in check. The FOMC's most recent dot-plot chart of forecasts by FOMC members, from its September meeting, has a median projection of a total four quarter-point increases from the current level.

Many employers have long complained they can't find enough workers to fill jobs.

Overall the jobs report reflected the tightest labor market in several years, one putting pressure on employers to raise worker pay. Eighteen states have increased their minimum wages this year.

The US jobs market remains incredibly strong and with wages starting to accelerate, domestic price pressures will increase.

Among economists, there was wider agreement that the jobs report pointed to strength in the USA economy, despite recent worries that weakness may be emerging in some sectors such as housing and trade.

Michelle Girard, chief United States economist at NatWest Markets, said that although some analysts warned of inflation, the pay increase should not bother policymakers at the Fed.

"The employment report should help calm some concerns that the economy is slowing more quickly than it really is, the economy is really in good shape", said Ryan Sweet, a senior economist at Moody's Analytics in Westchester, Pennsylvania.

Hassett predicted strong wage growth would "move even higher" than 3.1 percent next year as companies use their tax savings to invest more in factories, machines and other items that make workers more productive.

"Businesses tend to pass on higher costs by raising the costs of the things that they sell". Restaurants and hotels gained 33,000, a lot of them lower-paying.

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