U.S. job growth beats expectations in October
U.S. employers hired more workers than expected in October, but a rise in the unemployment rate to 3.7% suggested some loosening in labor market conditions, which would allow the Federal Reserve to shift towards smaller interest rates increases starting in December.
Nonfarm payrolls increased 261,000 last month, the Labor Department’s closely watched employment report showed on Friday.
Data for September was revised higher to show 315,000 jobs added instead of 263,000 as previously reported.
Economists polled by Reuters had forecast 200,000 jobs, with estimates ranging from 120,000 to 300,000.
The unemployment rate increased to 3.7% from September’s 3.5%. Average hourly earnings increased 0.4% after rising 0.3% in September. They were likely boosted by a calendar quirk.
Wages increased 4.7% year-on-year in October after advancing 5.0% in September as last year’s large increases dropped out of the calculation. Other wage measures have also come off the boil, which bodes well for inflation.