In October, the number of jobs by employers increased drastically. Unlike as estimated by experts, the employment industry flourished even after the hurricanes damaged all hope. The employment rate fell to 4.1%, the lowest the country has seen since December 2000. According to the Wall Street Journal, the economists that they surveyed had predicted just 315,000 new jobs in October. They expected the unemployment rate to be around 4.2%.
According to the Labor Department, Non-farm payrolls rose by a great margin to 261,000 in October. The hospitality and leisure workers rose to 106,000. It is the largest gain that the country has seen since July 2016 but was below the 310,000 jobs that the economists had expected. The average hourly earnings fell by one cent but remained almost unchanged in percentage terms. Wages had increased in September by 0.5 percent making the annual increase of wages 2.9 percent.
The Federal Reserve's assessment of job growth in October was as expected and since the labor market has increased and could increase interest rates in December since they have already lifted the rates twice in 2017. The new payroll data shows that the labor market is on a good trajectory after a little slip in September. The labor markets play a crucial role in the Fed's planning along with inflation and economic growth. It is believed that a good labor market will generate more paychecks and help consumer inflation. Last June, the central bank had increased the rates citing the increase in the labor market as one of the reasons. If the current economy shows the same position it is doing now, the rates can be increased again, but the decision will be taken only after Novembers report comes out.
In October, more than 6.52 million people were not able to find jobs for themselves. Also, the number of people working in part-time jobs decreased by 7.9% the lowest since 2006. The workweek also remained unchanged at 34.4 hours in October, the same since September.