U.S. job growth remains behind forecasts

Getty Images

U.S. employers added 261,000 jobs in October, a solid gain, however, remained below expectations.

Analysts had expected a significant increase in the setting after hurricanes Irma and Harvey depressed payroll growth in September.

Wage growth was also slower than expected, while the number of persons increased in the working population.

This helped drive the US unemployment rate down to 4.1% in October, the lowest rate since 2000.

The U.S. Department of labor, said that employment in the food and beverage industry had risen “strongly” and had mostly offset a decline in those areas, in September, when the hurricanes ravaged areas of Florida and Texas.

Job numbers for September were revised up to a gain of 18,000, according to initial estimates, the employment of 33,000 went.

J. J. Kinahan, chief market strategist at TD Ameritrade, said that “there was a lot to like” in the report, pointing to an increase in employment in sectors such as manufacturing and professional and business services.

But economists are cautious, saying, it is difficult to tease out the impact of the hurricane activity).

“Where is the wage growth?’

The U.S. economy has expanded steadily in recent months, with GDP growth estimated at 3% in the last quarter.

At the same time, job growth has slowed, with the hurricanes the effect of sharpening.

Economists said the previous Tempo setting would be hard to maintain, as the supply of people shrank in search of jobs.

But you have not thought about it that the wages is stronger than the employer to pay more to recruit staff.

“Again, it is a case of strong job growth, but where is the wage growth?” so Neil Wilson, senior market analyst at ETX Capital.

The labor Department said average hourly earnings for private sector employees was $26.53, virtually unchanged over the month. The earnings were up 2.4% year-on-year.

The economist Jared Bernstein, former adviser to Vice President Joe Biden, said the figures are a sign that there is more room for unemployment to fall.

The other say, the great hurricane-related swing in the food and hospitality jobs typically lower-paying fields may have an impact on the numbers.

“We’ll be back next month and see how the wages could have compensated, according to the hurricane impacts,” Mr Kinahan wrote.

Although the October figures missed forecasts, Mr Wilson and others, said the report will not change expectations that the US Central Bank is the interest rates in December.

But he added: “the worry for the Fed is that wage growth is stagnating, and this raises doubts about the pace of inflation growth…. Without the wages rise, the Fed to fight to the inflation target.”