Jumpin’ ju-ju bones, the October jobs report has blown away all expectations in every possible metric. It’s not just the top-line job gains, the two month revisions are huge.
The Bureau of Labor Statistics (BLS) report for October shows 128,000 job gains; and that number includes absorption for negative impacts due to -20,000 census workers coming off federal payrolls, and -42,000 striking auto-workers. Far better employment numbers than all projections and estimations.
Additionally, the prior two months had massive upward revisions. August was revised up by 51,000 (from +168,000 to +219,000), and the change for September was revised up by 44,000 (from +136,000 to +180,000). With these revisions, employment gains in August and September combined were 95,000 more than previously reported (BLS Link).
“The October jobs report is unambiguously positive for the US economic outlook,” said Citigroup economist Andrew Hollenhorst. “Above-consensus hiring in October, together with upward revisions to prior months, is consistent with our view that job growth will maintain a pace of 130-150K per month. Wage growth remaining at 3.0% should further support incomes and consumption-led growth.” (link)
The strong employment results are so strong the results now have all of the financial pundits reassessing their prior perspectives on the state of the U.S. economy.
Within the household survey data the civilian labor force grew by 325,000 in October; as the total civilian population grew by 207,000. Additionally the household data shows the number of people employed grew last month by 241,000.
The overall unemployment rate remained relatively unchanged at 3.6 percent, and almost every category of worker is at record low unemployment rates.
Everyone that wants to work is able to find a job easily. Additionally, the year-over-year wage growth remains +3.0 percent, which is much higher than inflation.
The financial pundits are quite shocked at the strength of Main Street and reevaluating their perspectives on the U.S. economy. Here’s a few examples: