US adds robust 250,000 jobs; pay growth fastest since 2009

US adds robust 250,000 jobs; pay growth fastest since 2009

US adds robust 250,000 jobs; pay growth fastest since 2009

Many employers have been struggling to find qualified applicants, which helps explain why average pay rose 3.1 percent over the past 12 months - the fastest year-over-year increase since 2009.

The Labour Department's monthly jobs report, the last major economic data before Tuesday's congressional elections, also showed that the unemployment rate remained at a five-decade low of 3.7 per cent.

But the latest government data on business investment was weaker than expected, a sign companies might be holding off on spending because of uncertainty on trade.

The US economy added another 250,000 jobs in October, beating expectations after slower growth in September. Professional and business services, which include engineers, architects and accountants, gained 35,000 jobs.

"Wow! The U.S. added 250,000 Jobs in October - and this was despite the hurricanes". At the same time, Arkansas' unemployment rate fell to an all-time low of 3.7% through September, eclipsing the previous record touched in August and the summer of 2017 when the state's labor pool climbed to more than 1.35 million workers. The Labor Department said Hurricane Michael, which struck the Florida Panhandle in mid-October, "had no discernible effect on the national employment and unemployment estimates for October".

In September wages were 3.1% higher than they were a year ago - the first time since April 2009 that wage growth has topped 3%.

Strong annual wage growth mirrors other data published this week showing wages and salaries rising in the third quarter by the most since mid-2008. Given that the number of job openings around the USA has exceeded the number of job-seekers since March, it's likely businesses will have to try work harder to attract employees, said PNC Senior Economist Bill Adams. The prime-age (25-54) labor force participation rate-which is an important indicator because it is not driven by demographics, but rather by the strength of the job market-increased by 0.4 p.p.to 89.0 percent among men and by 0.6 p.p.to 75.8 percent among women. And it's unlikely to change the Federal Reserve's strategy of gradually increasing interest rates.

"Wages are firming on a nominal basis for workers", said Ernie Tedeschi, head of fiscal analysis at Evercore ISI and a former economist in the Obama administration.

A strong labor market and rising wages should provide a boost to the housing market, which has seen sales fall in comparison to past year with the uptick in rates. Workers at United States Steel Corp (X.N) are set to receive a hefty pay rise also.

"The updated information released today suggests that the labor market remains strong and inflation remains manageable, supporting our call that the Fed will raise its key policy rate in December", Duncan said. The Standard & Poor's 500 index dropped 6.9 percent in October, the biggest decline in seven years. Meanwhile, the U.S. trade war with China poses a risk to further gains and companies may be slowing capital investment.

Nonfarm payrolls probably increased by 190,000 jobs last month, according to a Reuters survey of economists. Many retailers are removing the label "seasonal" from their job postings and looking for permanent workers instead. The Labor Department's snapshot of the US job marketplace easily beat economists' expectations of only 188,000 job gains and a jobless rate of 3.7%, according to the Wall Street Journal's monthly survey.

The dollar was trading higher against a basket of currencies. You could lose all of your deposited funds.

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