Announced this morning, the economy added 531,000 jobs in October, more than expected. In addition, the previous month was revised higher by over 100k to 312,000. The Leisure and Hospitality industry rebounded some by adding 164,000 jobs, while Government jobs were again weak, likely due again to seasonality adjustments. The Unemployment Rate decreased two tenths to 4.6% and the Labor Force Participation Rate was flat at 61.6%. Average Hourly Earnings increased 4.9% on an annual basis, as expected, and Average Weekly Hours were 34.7, which is one tenth lower than the previous month. Overall, a decent headline number that looks even stronger when the revisions to the previous month are considered and the unemployment rate continues its lower trajectory. The participation rate was flat as the labor force increased, suggesting individuals who came back to work were able to find jobs. The increase in average hourly earnings shows that wages continue to rise amidst labor market dislocations. The speed of people returning to the labor force and getting employed will be key in the months ahead, as government programs wane and inflationary pressures remain. The Federal Reserve should remain on track with their tapering of asset purchases and waiting to see when rate increases may be needed. In all, the U.S. 10-year treasury yield is little changed after fluctuating following this morning’s data and equity futures are higher as we head into the market open.
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