US Unemployment Rate Falls To 4.9% On Solid Job Creation
Fahad Shabbir (@FahadShabbir) Published November 04, 2016 | 06:50 PM
WASHINGTON,, (APP - UrduPoint / Pakistan Point News - 04th Nov, 2016 ) - The US economy added a solid 161,000 jobs in October while the unemployment rate fell to 4.9 percent, according to Labor Department figures released Friday.
In a show of steady momentum in the world's largest economy, the department revised upward its jobs reports for the previous two months by a total of 44,000 positions, taking the average for the past three months to a strong 176,000 new jobs.
Average hourly earnings also saw their strongest gains in seven years, rising 2.8 percent to $25.92. The jobs report pointed to the continued health of the US economy, according to Ian Shepherdson of Pantheon Macroeconomics, who said he expected gains in average hourly earnings to continue into 2017.
"With the labor market very tight, employers will struggle to resist," he said in a client note. The unemployment rate was little-changed from prior months, declining a tenth of a point to return to the level recorded between June and August.
However, the jobless rate among Hispanics fell sharply from 6.4 percent to 5.7 percent. Arriving in the final moments of the US presidential elections, the results appeared unlikely to lift the fortunes of either Democrat Hillary Clinton or Republican Donald Trump.
Despite steady job creation, Trump has portrayed the United States as being in sharp economic decline and impugned the integrity of federal agencies which produce economic data. Business services and healthcare saw strong gains, adding 43,000 and 31,000 positions respectively, with healthcare having grown by more than 400,000 positions over the previous 12 months.
Policymakers at the US Federal Reserve have so far held off raising US interest rates during 2016, hoping to avoid interrupting a fragile recovery, a position they reaffirmed this week. However they have signaled their intention to increase rates as soon as December.
Chris Williamson, chief business economist at IHS Markit, said Friday that the new jobs data made this more likely. Initial estimates for US growth in the third quarter showed the economy had expanded by 2.9 percent, a sign of regained momentum, he said.
"It seems that the only remaining obstacle to the Fed hiking in December would be a significant adverse financial market reaction to the US presidential election," Williamson said in a note to clients. Labor force participation was little changed at 62.8 percent and the number of long-term unemployed was steady at 2.0 million people, about a quarter of total unemployment.
Related Topics
Recent Stories
Tennis: ATP Barcelona Open results - 1st update
Swiatek's perfect 10 in Stuttgart as Vondrousova stuns Sabalenka
Arandu's roads closed due to flooding
Oil tanker catches fire in Islamabad’s Blue Area
Pakistan committed to ensure safety of foreign nationals: FO
Tennis: WTA Stuttgart results - 1st update
Four passengers injured as train hit an empty vehicle
Over- speeding bus crushed to death two bike riders
Turkey's Freedom Flotilla ready to set sail for Gaza
French teen dies from heart failure after knife attack near school
Iranians appear unfazed by Isfahan blasts
UAF celebrates Int'l Chinese Language Day
More Stories From World
-
Togo lawmakers approve contested political reform
14 minutes ago -
NATO must choose 'whether we indeed are allies': Zelensky
15 minutes ago -
US House to vote on Ukraine, Israel, Taiwan aid package
15 minutes ago -
Calls for calm after reported Israeli strike on Iran
45 minutes ago -
IMF calls on EU to deepen single market integration to boost growth
45 minutes ago -
Second Ecuadoran mayor killed ahead of anti-crime referendum: police
45 minutes ago
-
Oil, gas drilling blocked in Alaska wilds as Biden seeks green cred
2 hours ago -
Man sets self on fire outside Trump trial
2 hours ago -
Turkey's Freedom Flotilla ready to set sail for Gaza
3 hours ago -
French teen dies from heart failure after knife attack near school
3 hours ago -
Iranians appear unfazed by Isfahan blasts
3 hours ago -
Ecuador mayor killed ahead of anti-crime referendum: police
3 hours ago