Home news US jobs growth in October falls short of forecasts

US jobs growth in October falls short of forecasts

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New US employment data fell short of expectations in October after companies added 261,000 jobs.Markets had forecast a rise of 310,000 jobs last month after predicting a rebound from September when hurricanes Irma and Harvey depressed hiring. Average hourly earnings also missed targets growing by 2.4%, following expectations of 2.7% annual growth.However, the US jobless rate fell to 4.1% in October, the lowest rate since 2000.The US Department of Labor said employment in the food and drink industries had “increased sharply” and had mostly offset a decline in those areas in September when hurricanes devastated areas of Florida and Texas. Job numbers for September were revised up to a gain of 18,000 after initial estimates suggested that employment fell by 33,000.Despite October’s figures falling short of forecasts, Neil Wilson, senior market analysts at ETX Capital, said that markets see a “greater than 90% chance” that the US Federal Reserve will raising interest rates at the next monetary policy meeting in December.But he said: “Of concern for the Fed is that wage growth has stalled and this raises doubts about the pace of inflation growth. Again it’s a case of strong jobs growth but where is the wage growth? Without wages going up the Fed is going to struggle to achieve its inflation target.”
Source: BBC News

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