US economy market adds 250,000 new jobs in October
Average wages also rose by 3.1 per cent year-on-year, the fastest rate since 2009
The US jobs market continued to surge in October, adding 250,000 new jobs.
That figure, reported by the Bureau of Labor Statistics (BLS), was 60,000 higher than the 190,000 Wall Street analysts had pencilled in.
It was also higher than the average monthly gain of 211,000 over the past year.
And average wages rose by 3.1 per cent year-on-year, the fastest rate since 2009.
The unemployment rate was unchanged at 3.7 per cent, the lowest rate since 1969.
The dollar index spiked in the wake of the data, rising to 96.322. But the wider market reaction was more muted.
“The US released the strongest employment report in over a decade today,” said Eric Norland of CME Group.
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“These numbers should underpin both strong consumer spending as well as generate inflation fears. Moreover, the exceptionally strong employment numbers will give the Federal Reserve the ammunition that it needs to continue raising rates, despite objections from the White House.”
The US central bank raised interest rates to 1.75-2 per cent in September to cool what it sees as rising inflationary pressures.
Projections by Fed’s policymakers signal one further quarter point rate hike later this year, followed by three in 2019 and another three in 2020.
The BLS said the major October jobs gains were in healthcare (36,000), manufacturing (32,000), construction (30,000) and transportation (25,000).