US employment growth rose at a stable clip in October, while the rate of unemployment dropped to a fresh six-year low, underlining the fast recovery of the country’s against the slowing global demand.
Employers hired 214,000 new jobs to their payrolls in October, according to the Labor Department report showed on Friday. The rate of unemployment declined to 5.8 percent from 5.9 percent as more and more people joined the country’s labor force signaling the strengthening of the economy.
Wage growth remained moderate despite the strengthening labor market, indicating the need for the Federal Reserve Bank to speed up the process of lifting interest rates.
Michael Griffin, managing director at CEB in Arlington, Virginia, “The report confirms that the United States remains the bright spot in a global economic picture filling with clouds.”
The unemployment rate has fallen by 0.8 percentage point since January this year, while job gains have held the top spot 200,000 for nine consecutive months, which is the longest stretch since 1994.
Last week, the American central bank maintained a relatively upbeat tune on the employment picture as it shut down its bond-buying stimulus program, but even after the jobs data, financial markets maintained their view that the benchmark rates would continue to stay near zero until the second half of next year.
Senior economists at Barclays Michael Gapen said, “Continued progress in labor markets will likely keep the Fed on a path to normalization, but it will likely remain patient … given modest wage and inflation pressures.”
Meanwhile, the prices for US Treasury debt increased and the US dollar retreated from a 4-1/2-year high against a basket of its counterparts. The US stocks were little influenced.
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