Our Take– Job gains beat consensus expectations, Unemployment is at its lowest level since I was a junior in High school, Participation rate matches its best level this year, and private non-farm wages have risen 3.1% this year according to this BLS jobs report.
Bottom line–the US economy is based on consumer spending. This report shows that consumers are growing their purchasing power a positive indicator for the economy going forward.
Key Points
- “Total non-farm payroll employment rose by 250,000 in October, and the unemployment rate was unchanged at 3.7 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in health care, in manufacturing, in construction, and in transportation and warehousing.”
- “In October, employment in manufacturing increased by 32,000. Most of the increase occurred in durable goods manufacturing, with a gain in transportation equipment (+10,000). Manufacturing has added 296,000 jobs over the year, largely in durable goods industries…On average, 213,000 jobs have been added each month in 2018 YTD.”
- “The labor force participation rate increased by 0.2 percentage point to 62.9 percent in October but has shown little change over the year.
- “In manufacturing, the workweek edged down by 0.1 hour to 40.8 hours, and overtime was unchanged at 3.5 hours.“
- “In October, average hourly earnings for all employees on private nonfarm payrolls rose by 5 cents to $27.30. Over the year, average hourly earnings have increased by 83 cents, or 3.1 percent.“
- “The unemployment rate remains at it’s 48 year low, 3.7%- lowest rate since 1969. Interestingly, not a single industry was reported to have lost any jobs.”