Wages surge as US adds a robust 250,000 jobs in October

04 November, 2018, 22:58 | Author: Eric Barnett
  • Donald Trump

The unemployment rate remained unchanged at 3.7%.

Polls have suggested that while Americans generally approve of the economy's performance, that sentiment hasn't necessarily broadened support for President Donald Trump or Republican congressional candidates.

The president tweeted that the jobs numbers were "incredible" and urged people to "Keep it going, Vote Republican!"

The Dow Jones Industrial Average was off about 200 points, or 0.8%, at 25,193 in early afternoon after rising initially following the strong jobs news, which featured a 250,000 rise in nonfarm payrolls last month, better than 50,000 above economists' consensus guesses.

There were also big gains in manufacturing, construction and professional and business services payrolls. The estimate for September was revised downward to 118,000 job additions.

With the unemployment rate so low, many economists have expected hiring to decline as businesses face a dwindling supply of unemployed people.

The 12-month wage increase was the largest since 2009 and topped September's 2.8 percent gain. The FOMC's most recent dot-plot chart of forecasts by FOMC members, from its September meeting, has a median projection of a total four quarter-point increases from the current level.

October also marked the second month in a row that a hurricane had landed in the middle of the survey - meaning the figures could be subject to extra volatility, Ian Shepherdson of Pantheon Macroeconomics said.

USA stocks were trading mostly lower and the dollar was slightly weaker against a basket of currencies on Friday. Some of the third quarter's weakness reflected lower spending on oil and gas drilling equipment as oil prices fell.

With relatively few unemployed Americans looking for work, employers are increasingly being forced to bid up wages to poach workers from other employers or retain the ones they have. Openings exceeded 7.1 million, according to the government's most recent count.

Some analysts have tied rising pay to moves by 18 states to increase their minimum wages at the start of the year. Job growth in 2018 is averaging 213,000 new jobs per month, the strongest pace in three years. That is seen supporting the economy through at least early 2019 when gross domestic product is expected to significantly slow as the stimulus from the White House's USD1.5 trillion tax cut package fades.

The influx of new job seekers in October increased the proportion of Americans with jobs to its highest level since January 2009. The measure includes part-time workers wanting a full-time job and people who are not actively looking for work.

The share of the population in the workforce also rose 0.2% to 60.6%. Teenage unemployment dropped last month to 11.9 per cent, the lowest since 1969. Retail payrolls rose by only 2,400, likely restrained by layoffs related to Steinhoff's Mattress Firm bankruptcy as well as some store closures by Sears Holdings Corp.

Still, the rosy number benefited from a favourable comparison to October 2017, when many low-wage employees returned to work after being sideline by Hurricane Maria, bringing the average of hourly earnings back down, Shepherdson said.

The Bureau of Labor Statistics said most of the jobs occurred in health care, manufacturing, construction, and transportation and warehousing. Job gains in the sector, which accounts for about 12 per cent of the USA economy, could slow after a survey on Thursday showed a measure of factory employment fell in October.

Manufacturing output and hiring remain healthy, according to a survey by a private trade association, although increased tariffs have raised factory costs.

Despite the protectionist measures, the trade deficit continues to deteriorate. "Meanwhile, the housing sector, another weather-sensitive industry, also registered job gains this month".


  • BMW 8 Series Convertible debuts: ?523-hp M850i xDrive starts at $122,395

    BMW 8 Series Convertible debuts: ?523-hp M850i xDrive starts at $122,395

    A diesel, the 840d xDrive, uses a V-6 powerplant to make 320 hp and can accelerate to 62 miles per hour (100 kph) in 5.2 seconds. According to BMW's estimates, it will do 0 to 60 in 3.8 seconds and has a limited top speed of 155 miles per hour .
    Apple shares tumble on concerns of slowing iPhone demand worldwide

    Apple shares tumble on concerns of slowing iPhone demand worldwide

    Heads up, Apple device owners: An upcoming pilot program may help you get more life out of your old gadgets. The iPhone still looms large over Apple's fortunes , accounting for more than 60 percent of revenues.
    United States  service member killed in 'apparent insider attack' in Afghanistan

    United States service member killed in 'apparent insider attack' in Afghanistan

    Timothy Bolyard was shot dead in an insider attack, killed by one of the Afghan security members he came to Afghanistan to train. Taylor was deployed to Afghanistan in January with the Utah National Guard for what was expected to be a 12-month tour of duty.
  • Wayne Rooney to make England comeback

    Wayne Rooney to make England comeback

    Wayne Rooney is poised to make a shock return to the England national team later this month, according to widespread media reports.
    UN agency urges open access for aid to Yemen

    UN agency urges open access for aid to Yemen

    The clashes erupted just hours after the government said Thursday it was ready to restart peace talks with the Iran-backed Huthis. Yemen has been at war since March 2015 when Houthi rebels occupied northern regions and forced the government into exile.
    EPL: Sarri reveals why Victor Moses doesn't have future at Chelsea

    EPL: Sarri reveals why Victor Moses doesn't have future at Chelsea

    Meanwhile, Drinkwater has only featured on 23 occasions since his £35m move from Leicester in September 2017. Asked whether the pair still have Chelsea futures, Sarri said: 'I don't know.
  • Leicester City players pay respects at owner's Thai funeral

    Leicester City players pay respects at owner's Thai funeral

    But Leicester manager Claude Puel has defied the controversy to accept the yellow card handed to his goal-scoring player. Leicester held on to win 1-0, a result we were all kind of hoping and rooting for - bar Cardiff fans, naturally.
    [Confirmed Lineups] Arsenal v Liverpool - Bellerin Returns To Starting Lineup

    [Confirmed Lineups] Arsenal v Liverpool - Bellerin Returns To Starting Lineup

    On the other side of the table, there are teams who have very few points and they all have a chance to stay in the league. The Reds meanwhile will be hoping to overtake leaders Manchester City who are only ahead by virtue of goal difference.
    Lewis Hamilton Seals 5th F1 Championship in Mexico

    Lewis Hamilton Seals 5th F1 Championship in Mexico

    Hamilton , 33, has won four of his in the last five years and has a contract with champions Mercedes for two more seasons. But the overall achievement is magnificent and Lewis' driving this year has been peerless so we have to be happy.
  • Kim Kardashian apologizes for using R-word

    Kim Kardashian apologizes for using R-word

    Khloe Kardashian got in trouble for using the same slur back in July and quickly apologized for her mistake. Kim should have learned to not use the word along with her sisters, but now she's learning the hard way.
    Ethnic Tamil party pledges vote against Sri Lankan strongman

    Ethnic Tamil party pledges vote against Sri Lankan strongman

    Plantation workers in the Tamil-dominated Vavuniya district had planned a strike on October 27, demanding a wage hike. The US turned a blind eye to the Rajapakse government's anti-democratic methods and abuses of human rights.
    Trump Preps Election Day Spin: We Saved The Senate!

    Trump Preps Election Day Spin: We Saved The Senate!

    Trump effusively praised Morrisey, the state's attorney general, saying that "he'll always vote for us". "Trump is helping. A White House that has struggled to stay on course under favourable circumstances would be tested in dramatic ways.


5'1 woman wrongly accuses bouncer of groping her then chokes him unconscious
LaGrave has been released on her own recognizance and is expected back in court on November 20, the Press-Republican reports. Police say he didn't resist because he thought it was one of his friends playing a joke.

Nigeria's army uses Trump's words to justify shooting protesters
The army's official Twitter account shared the video adding the caption " please watch and make your deductions ". Pacific Press/Sipa USA/NewscomNigeria's military today justified the deaths of Shia protesters using U.S.

Oil market on alert as Iran sanctions hit
So India, Iran and Afghanistan can jointly partner in the region to deal with the problem in which the USA is stuck. Washington will on Monday reintroduce far-reaching sanctions on Iran's vital oil sales and banking sectors.

Ariana Grande Addresses Ex-Boyfriends, Talks Self-Love On "Thank U, Next"
And it seems like Ariana is still not over it, because she just referenced their tiff in her Instagram stories. Davidson himself threw a few self-digs during his " Weekend Update " segment.

Norway Summons Iranian Diplomat Over Alleged Assassination Plot
The target of the alleged attack was an opposition activist campaigning for greater independence for the Arab minority in Iran. The EU has been trying to save the deal that curbed Iran's nuclear activities in return for lifting worldwide sanctions.

Twitter reportedly removes over 10,000 accounts that discourage voting
They allow users to identify automated accounts and further analyse how they are spreading information about a specific topic. Despite the lower numbers in removal, the Democratic Congressional Campaign Committee (DCCC) is hailing this as a victory.

Samsung takes up 20pc of global smartphone market in Q3
OPPO rounds out the top five with 8.4% market share - a small increase over Q3 2017 - despite decreased shipment volume. IDC said this was the fourth consecutive quarter of year-over-year declines for the global smartphone market.

Study Links Older Cellphone Frequencies To Cancer In Male Rats
The radiation began in the womb or early in life and lasted for up to two years, which is most of the animals' lifetime. More information on the categories is available at https://ntp.niehs.nih.gov/results/pubs/longterm/defs/index.html .

All-Rounder Andre Russell Ruled Out Of India vs Windies T20I Series
India vs West Indies match will be aired on Star Sports Network, some of the channels being Star 1, Star 1 HD, Star 1 Hindi, etc. Two years ago at Eden, he turned out to be the showstopper, clobbering four sixes in the final over in the World T20 final.

Midterm elections 2018: Who is Stacey Abrams? Georgia politician backed by Oprah
The pitches from Pence and Winfrey clearly fit Abrams' and Kemp's respective strategies. Winfrey called Abrams a "change-maker" who represents the values of all Georgians.