US adds 250000 jobs in October, unemployment rate steady

Donald Trump

The Associated Press

In October, the US economy created 250,000 jobs, topping expectations, while the unemployment rate held at 3.7%, matching the lowest level since 1969. Additionally, the baseline for the wage increase is lower because it is compared to October 2017, when wages dipped. Economists believe that the Labor Department numbers will show employers added 190,000 jobs. 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 2008.

Still, inflation has picked up a bit in the past year as well, eating away at some of those pay raises.

Chair of the Council of Economic Advisers Kevin Hassett will join FOX Business' Stuart Varney at 9:30 a.m. ET for a full analysis of the latest data and what it means for US workers and the economy.

One of the most positive signs for workers in the labor data has been the 7.1 million job openings in the USA economy.

FILE- In this January 30, 2018, file photo, Loredana Gonzalez, of Doral, Fla., fills out a job application at a JobNewsUSA job fair in Miami Lakes, Fla. Data for September was revised to show 118,000 jobs added instead of the previously reported 134,000.

The latest report bodes well for a flagging residential real estate market.

Among the major worker groups, the jobless rates for adult men (3.5%), adult women (3.4%), teenagers (11.9%), Whites (3.3%), Blacks (6.2%), Asians (3.2%), and Hispanics (4.4%) showed little or no change in October. The proportion of people without a high school diploma who are now working is the highest on records dating to 1992. She felt she needed a high enough hourly wage to make up for the cost of child care for her three children. The government said the US has not created as many manufacturing jobs in October since 1998.

More news: Cohen: trump often made racist statements

"Construction spending has increased among almost every project type and geographic area this year", said Ken Simonson, the association's chief economist.

The resulting strength in customer demand has led companies to steadily add workers. Though economists predict that hiring will eventually slow as the pool of unemployed Americans dwindles, there's no sign of that happening yet.

The Bureau of Labor Statistics said last month that Hurricane Florence may have depressed job growth, but that Hurricane Michael in the Florida panhandle had "no discernible effect". And in one important way it doesn't matter whether Trump deserves credit: Presidents typically get credit or blame for the state of the economy under their watch, even if economic trends take years to develop.

The good news foreshadows more interest-rate increases from the Federal Reserve. Most analysts expect the Fed to resume its rate hikes in December. Professional and business services, which include engineers, architects and accountants, gained 35,000 jobs.

So far, manufacturing hiring does not appear to have been affected by the Trump administration's protectionist trade policy, which has contributed to capacity constraints at factories.

Construction companies hired 30,000 more workers in October. Retail payrolls rose by only 2,400, likely restrained by layoffs related to Steinhoff's Mattress Firm bankruptcy as well as some store closures by Sears Holdings Corp. "They can afford to pay them more". In good news for the president, wages grew at their fastest rate for close to a decade. The annual increase of 3.1 per cent followed a 2.8 per cent advance.

"The economy peaked in the second quarter of this year and has been slowing for four to five months", said David Kotok, chair of Cumberland Advisors.

Latest News