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Last Update: 02-Nov-12 09:08 ET
Employment Situation Shows Solid Improvement in October
Nonfarm payrolls added 171,000 jobs in October, up from an upwardly revised 148,000 (from 114,000) in September. The Briefing.com consensus expected 125,000 new jobs in September. Overall, the employment situation shows solid improvement in October. Private employment increased by 184,000 jobs in October, which easily topped consensus expectations of 135,000 new jobs. Of all the different private industries, 60.7% of them posted positive job growth in October. That is the largest percentage since 61.3% of industries added jobs in May. Unfortunately, the aggregate wages did not expand as much as employment. Average hourly earnings were flat after increasing 0.3% in September. The average hourly workweek remained at 34.4 hours. Aggregate wages increased a modest 0.1% in October. Aggregate wages rose 0.4% in September.
The unemployment rate ticked higher, increasing from 7.8% in September to 7.9% in October. That was exactly what the consensus expected. The pickup in unemployment was due to a large gain in the labor force and not from declines in employment. The labor force increased by 578,000 in October, which caused the labor force participation rate to increase from 63.6 to 63.8. The number of people employed increased by a solid 410,000. Importantly, the increase in employment was due to people finding full-time jobs. Part-time employment levels fell by 269,000.
The unemployment rate ticked higher, increasing from 7.8% in September to 7.9% in October. That was exactly what the consensus expected. The pickup in unemployment was due to a large gain in the labor force and not from declines in employment. The labor force increased by 578,000 in October, which caused the labor force participation rate to increase from 63.6 to 63.8. The number of people employed increased by a solid 410,000. Importantly, the increase in employment was due to people finding full-time jobs. Part-time employment levels fell by 269,000.
