The U.S. economy added 271,000 non-farm payroll jobs in October, well above the 167,000 forecast from briefing.com while the unemployment rate dropped to 5.0 from 5.1 percent, the Bureau of Labor Statistics reported today.
The positive U.S. employment data in October is an encouraging sign for the employment picture and could give U.S. central bankers at the Federal Reserve enough room to begin hiking interest rates at their next meeting in December instead of waiting until 2016.
Economists have remained on the fence about raising interest rates since the prior 2 months have witnessed U.S. job gains drop to under 200,000.
Last month the U.S. economy added only 137,000 non-farm payroll jobs.
During the past 3 months, job gains have averaged 187,000 per month but over the past 12 months, U.S. employment growth had averaged 230,000 per month.
The largest job gains in October was seen in professional and business services which added 78,000 in October followed by health care with 45,000 jobs, retail at 44,000, and construction industry at 31,000.
Job revisions for July and August were revised 12,000 higher.
The job revision in August went from 136,000 to 153,000 and September was revised from 142,000 to 137,000.
In October, average hourly earnings for all employees on private nonfarm payrolls increased by 9 cents to $25.20, after a minor change in September
with only 1 cent.
Hourly earnings have risen by 2.5 percent over the year.
The average workweek for all employees on private nonfarm payrolls remained at 34.5 hours in October.
Today’s employment report showed the civilian labor force participation rate was unchanged at 62.4 percent in October, following a decline of 0.2 percent in September.
On Wednesday ADP reported that private payroll gain increased by 182,000 jobs in October, slightly missing the 185,000 estimate from briefing.com. and below the 190,000 revised jobs added in September.