US economy adds 250,000 jobs in October
As reported by the Labor Department on Friday, the US economy added a better-than-expected 250,000 jobs during the month of October. Most new jobs came from construction, healthcare, and manufacturing
The overall unemployment rate remained unchanged at 3.7%, while the rate for Hispanics dropped to an all-time-low of 4.4%.
Labor force participation for workers between the ages of 25 and 54 hit 82.3% (its highest level since May 2010) and wages increased 3.1% compared to last year (the largest annual gain since 2009). October was also the 97th straight month employers have added to their payrolls and the first time since the recession the pay gauge has risen more than 3% from a year earlier.
And with wage growth remaining above the inflation rate, workers’ paychecks are allowing workers to improve their standard of living.
Friday’s report is good news for the Trump Administration as Republicans attempt to maintain control of the House and Senate next week.
“Wow!” Tweeted Trump on Friday. “The US added 250,000 jobs in October – and this was despite the hurricanes…These are incredible numbers. Keep it going. Vote Republican!”
The low unemployment rate is a “huge milestone,” says Bank of the West economist Scott Anderson. “We’ve finally gotten unemployment low enough that we’re actually getting some traction on wages and salaries. And it looks like we’re pulling more people into the labor force as wages rise.”
The strong labor market will also keep the Federal Reserve on track to continue lifting its benchmark interest rate, with the next hike expected in December.
Meanwhile, economic growth for Q2 (4.2%) and Q3 (3.5%) combined represents the strongest six-month period of growth in four years. And despite increased factory costs resulting from the trade dispute with China, manufacturing output remains healthy.
Editor’s note: If anyone needs advice on how to vote in the mid-terms on Tuesday, just remember that this is Trump’s economy.