US Adds Robust 250K Jobs; Pay Growth Fastest Since 2009

Meanwhile, the unemployment rate remained at 3.7% - it was last lower in December 1969!

The average workweek for all employees on private nonfarm payrolls increased by 0.1% to 34.5 hours in October.

But perhaps more significant, average hourly earnings, a closely-watched measure of worker pay, rose 0.2 percent from September, putting wages 3.1 percent above the year-ago level - the fastest gain since April 2009.

Still, inflation has picked up a bit in the past year as well, eating away at some of those pay raises.

The October data may be less of an indicator of the trend than usual because they reflect distortions from hurricanes both this year and last year. "Productivity growth is picking up, and workers should earn more".

FILE- In this January 30, 2018, file photo, Loredana Gonzalez, of Doral, Fla., fills out a job application at a JobNewsUSA job fair in Miami Lakes, Fla.

The US economy added 250,000 jobs in October, significantly exceeding expectations, the government announced Friday. Even retailers hired 2,400 added workers, after long hemorrhaging jobs. According to estimates by Shipley of Evercore ISI, the replacement of retiring baby boomers, who likely were in their peak earnings years, with lower-paid, younger workers is depressing the annual rise in average hourly earnings by some 0.6 percentage point. The proportion of people without a high school diploma who are now working is the highest on records dating to 1992.

Manufacturing jobs jumped by 32,000, with the largest gains stemming from goods production. "I had to bring home enough on top of child care". "With consumer confidence at its highest point since 2000 and GDP growth at an impressive 3.5% this quarter, there is an even stronger case for continuing to raise interest rates into 2019", said Rick Steve, chief economist at CUNA Mutual Group.


Strength in their customer demand has been a key factor leading companies to steadily add workers. Though economists predict that hiring will eventually slow as the pool of unemployed Americans dwindles, there's no sign of that happening yet.

The strong job growth and bigger pay increases will likely encourage the Federal Reserve to keep raising short-term interest rates. But Fed policymakers expect growth to slide to 2.5 percent rate next year and to 2 percent in 2020. However, Hurricane Michael, which hit Florida and Georgia last month, will have had a detrimental impact on payrolls in that region through worker absence. ADP said the economy had added 227,000 jobs in October, with employers reporting they are now struggling to fill positions.

October also marked the second month in a row that a hurricane had landed in the middle of the survey - meaning the figures could be subject to extra volatility, Ian Shepherdson of Pantheon Macroeconomics said. Professional and business services 35,000.

Construction employment rose by 30,000 in October, with almost half of the gain occurring among residential specialty trade contractors.

Retail payrolls probably remained weak, weighed down by layoffs related to Steinhoff's Mattress Firm bankruptcy as well as some store closures by Sears Holdings Corp.

As Americans become more confident about their job prospects, they are coming off the sidelines and looking for work.

The Chautauqua County unemployment rate has decreased more than a point in the a year ago. In the early 2000s and late 1960s, wages for nonsupervisors, for which more years of data are available, were growing at a 4%-or-better annual pace.


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