US employers added 261,000 jobs in October, a solid gain that will nevertheless fell short of expectations.
Analysts had expected a sharp increase in hiring, after hurricanes Irma in addition to also also Harvey depressed payroll growth in September.
Wage growth was also slower than expected, while the number of people not within the labour force rose.
that will helped drive the US jobless rate down to 4.1% in October, the lowest rate since 2000.
The US Department of Labor said employment within the food in addition to also also drink industries had “increased sharply” in addition to also also had mostly offset a decline in those areas in September when hurricanes devastated areas of Florida in addition to also also Texas.
Job numbers for September were revised up to a gain of 18,000 after initial estimates suggested that will employment fell by 33,000.
JJ Kinahan, chief market strategist at TD Ameritrade, said that will “there was a lot to like” within the report, pointing to an increase in jobs in industries such as manufacturing in addition to also also professional in addition to also also business services.
yet economists were cautious, saying that will can be hard to tease out the effects of hurricane-related activity.
‘Where can be the wage growth?’
The US economy has expanded steadily in recent months, with GDP growing an estimated 3% within the most recent quarter.
At the same time, job growth has slowly decelerated, with the hurricanes sharpening the effect.
Economists said the earlier pace of hiring would certainly be hard to sustain as the supply of people looking for jobs shrank.
yet they have been puzzled that will wage growth can be not stronger, as employers pay more to recruit staff.
“Again that will’s a case of strong jobs growth yet where can be the wage growth?” said Neil Wilson, senior market analyst at ETX Capital.
The Labor Department said average hourly earnings for private sector employees were $26.53, nearly unchanged over the month. Earnings were up 2.4% year-on-year.
Economist Jared Bernstein, former adviser to vice president Joe Biden, said the figures are a sign there can be room for unemployment to fall farther.
Others said the large hurricane-related swing in food in addition to also also hospitality jobs – typically lower paid fields – might be affecting the numbers.
“Let’s come back next month in addition to also also see how wages might have evened out after the hurricane impacts,” Mr Kinahan wrote.
Although October’s figures fell short of forecasts, Mr Wilson in addition to also also others said the report does not alter expectations that will the US Federal Reserve will raise interest rates in December.
yet he added: “Of concern for the Fed can be that will wage growth has stalled in addition to also also This particular raises doubts about the pace of inflation growth…. Without wages going up the Fed can be going to struggle to achieve its inflation target.”