US jobs growth surges past forecasts in October as wage inflation accelerates.


US job creation accelerated sharply in October, comfortably beating forecasts, while unemployment edged lower and wage growth unexpectedly picked up, according to official figures released on Friday.

Source: Sharecast

Non-farm payrolls increased by 165,000, the Bureau of Labor Statistics said, well ahead of consensus expectations for a 65,000 rise and more than double September's upwardly revised gain of 60,000.

September's initial estimate of 29,000 was revised up by 31,000, while August's figure was raised 53,000 to 186,000, meaning 84,000 jobs were added to two previously reported payroll figures.

The unemployment rate dipped to 4.1% from 4.2%, against expectations for an unchanged reading, although the number of unemployed people remained broadly stable at 7.1m.

Meanwhile, average hourly earnings increased by 0.4% month-on-month to $38.00, accelerating from September's 0.1% rise and exceeding forecasts of 0.3%.

Annual wage growth also accelerated to 3.1% from 3%, defying expectations for a slowdown to 2.9%, which would have represented the weakest rate in over five years.

The stronger-than-expected report suggested that the US labour market remained resilient, with October's payroll increase significantly exceeding the average monthly gain of 48,000 over the previous 12 months.

Professional and business services led hiring, adding 70,000 jobs, followed by healthcare with 42,000 and transportation and warehousing with 25,000. Manufacturing employment also increased by 19,000.

However, there were some signs of underlying weakness, with the number of people working part-time for economic reasons rising by 339,000 to 4.8m.

The headline figures are seasonally adjusted to remove recurring fluctuations in employment, although the BLS did not identify any unusual seasonal adjustment effects behind October's stronger reading. It said revisions to previous months reflected additional employer data and recalculated seasonal factors.

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