According to the Bureau of Labor and Statistics U.S. job growth surged in October after two straight months of tepid gains, with the unemployment rate hitting a 7-1/2-year low!
This is how this months report breaks down...
- Nonfarm payrolls increased 271,000 last month, the largest rise since December 2014
- Average hourly earnings increased 9 cents last month. The solid gains added to robust automobile sales in painting an upbeat picture of the economy at the start of the fourth quarter.
- The unemployment rate fell to 5.0 percent, the lowest level since April 2008, from 5.1 percent the prior month.
- The jobless rate is now at a level many Fed officials see as consistent with full employment.
- Economists polled by Reuters had forecast nonfarm payrolls increasing 180,000 last month and the unemployment rate unchanged at 5.1 percent. This estimate was obviously blown away.
- There was also strong services sector and auto sales data in supporting views that economic growth will regain momentum in the fourth quarter after braking sharply to a 1.5 percent annual pace in the July-September period.
- Last month's rise in wages, which have been almost stagnant despite a tightening labor market, lifted the year-on-year reading to 2.5 percent. That was the biggest increase since July 2009 and could give Fed officials confidence that inflation will gradually move towards their 2 percent target.
- A broad measure of joblessness that includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment fell two-tenths of a percentage point to 9.8 percent, the lowest level since May 2008.
- Mining shed 4,000 positions as energy companies cutting back on well drilling and exploration in response to lower oil prices.
- Construction payrolls increased 31,000 last month, the biggest gain since February.
- The services sector added 241,000 jobs last month, with large gains in retail, health and leisure.
- Government payrolls increased 3,000 last month.
- In addition to the this months good news payrolls data for August and September were revised to show 12,000 more jobs created than previously reported.
So even though the market's won't like a rate hike the average Joe on the street who has a job now sure as hell likes these numbers.