US employment is out for October. The GM strike is over, but it crushed the manufacturing sector. But bartenders and restaurant waitstaff led the jobs addition.
- Payrolls increased 128,000, topping estimates, and revisions added 95,000 jobs for the prior two months, suggesting the labor market remains broadly healthy
- Wage growth rose 3% on an annual basis, and the prior month’s year-over-year gains were revised higher. While broadly decelerating, wages continue to support consumer spending and drive the record-long expansion forward
- Today’s report is good news for the Federal Reserve and Chairman Jerome Powell. It supports Powell’s description of the labor market as “strong” and his view that the economy is in a good place
- A few quirks in today’s report subdued what would have been a knockout number. The GM strike took a 41,600-job bite out of payrolls, while the roll-off of some temporary 2020 census workers shaved an additional 20,000
- The unemployment rate edged up to 3.6%, which is still extremely low. It also reflected an influx of about 325,000 people into the labor market, which is a good thing
Where the jobs added were:
So, it looks like Powell and Richard Clardia, the Vice-chair of the Federal Reserve will view this jobs report as a reason to pause rate cuts.
The Dow jumped 250 points on the positive jobs report.
Meanwhile, there are jobs galore at establishments like Paddy’s Pub and Brion’s Grille on George Mason University campus!