U.S. Jobs Report Signals More Interest Rate Hikes Ahead

JOBS BOOM: US Companies Add a Robust 227000 Jobs in October

USA job growth rebounded sharply in October and wages recorded their largest annual gain in 9-1/2 years, pointing to further labor market tightening that could encourage the Federal Reserve to raise interest rates again in December. Unemployment unchanged at 3.7 percent, a 49-year low - and the rate would have dropped, except that more people returned to the labor force. You still have more people coming back to the labor market.

USA companies added 227,000 jobs in October, according to a private survey, a healthy gain that suggests businesses can still find workers even with the unemployment rate striking 49-year lows.

"Wow! The U.S. added 250,000 Jobs in October - and this was despite the hurricanes". Unemployment at 3.7%. Wages UP! However, Hurricane Michael, which hit Florida and Georgia last month, will have had a detrimental impact on payrolls in that region through worker absence. The Federal Reserve's preferred price measure rose 2 percent in September compared with a year earlier, slightly lower than the year-over-year increase in August.

The 12-month wage increase was the largest since 2009 and topped September's 2.8 percent gain. Separate Labor Department data released earlier this week showed that salaries in the third quarter were, on average, 2.9 percent higher than last year's.

Inc. last month lifted pay for it lowest-earning employees to $15 an hour. The 3.1 percent increase in wages was up from 2.8 percent in September.

In another dose of good news, the American workforce grew by 711,000 people, lifting the labor force participation rate 0.2 percentage points to 62.9 percent, after holding stubbornly stable through the economic recovery. Kevin Hassett, chairman of the White House's Council of Economic Advisers, said on Bloomberg Television that "we're seeing the wage growth that everybody said was impossible". "Wages are firming on a nominal basis for workers", said Ernie Tedeschi, head of fiscal analysis at Evercore ISI and a former economist in the Obama administration.

The country now has 7.1 million job openings, a record high, the Labor Department announced Tuesday.

Terrorists slaughter Coptic Christians in Egypt
Security forces are now searching for the unknown gunmen who carried out the terror attack on the bus, the sources said . In April 2017, twin suicide bombings, claimed by Islamic State, targeted two Coptic churches, killing 48 people.

Average hourly wages rose 3.1 percent over the last year - the first time wage growth broke through the 3 percent ceiling in nine years, according to the latest report from the Bureau of Labor Statistics.

Wages are also rising.

The report also cements expectations that the Federal Reserve will raise interest rates at its December meeting. Economists had been expecting fewer new jobs after the slowest growth so far this year was recorded in the previous month.

The details on Friday's numbers show the gains were broad: 30,000 new jobs in construction, 32,000 in manufacturing and 179,000 in services.

A broader measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they can not find full-time employment, fell one-tenth of a percentage point to 7.4 percent, matching a 17-year low hit in August.

Construction employment rose by 30,000 in October, with almost half of the gain occurring among residential specialty trade contractors. Jobs in the sector have been increasing despite weakness in the housing market. Although the purchasing managers index for manufacturing fell in October to the lowest level since April, indicating slowing demand, the employment report is an an indication that tariffs on imported aluminum and steel haven't negatively impacted hiring in factories thus far.

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