October Jobs Report: Unemployment down, Wages Up

Last month’s job report has shown some growth in US payrolls and a decrease in the unemployment rate. More than 200,000 jobs have been created each month since February and the unemployment rate fell to 5.8 percent, the lowest its been since 2008. Measures of unemployment and underemployment, which include involuntary part-time workers and workers who have given up on the job search, have decreased by three-tenths of a percentage in October, now standing at 11.5 percent.

Wages have risen by 2 percent in October which is a similar rise to the rest of the year but is only slightly above the 1.7 percent price inflation consumers have seen in September. Workers are seeing higher incomes but this is mostly due to the increased number of hours being worked.

“The quality of job creation remains insufficient to translate into wage pressures,” said Lindsey Piegza, economist at Sterne Agee Group.

The continued growth of the US economy, and therefore the labor market, is somewhat uncertain due to slow growth in the Chinese economy, threat of recession in Europe, and conflict in the Middle East. The future stability of the economy will also likely be affected by decisions coming out of the Federal Reserve with respect to raising short-term interest rates.

“The labor market is showing remarkably solid and consistent gains in jobs with payrolls,” economists from RDQ Economics LLC wrote in a note to clients.

 

Read More – Payrolls Climb and Unemployment Falls, But Economic Unease Lingers (Wall Street Journal, Eric Morath)

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Originally from Gaithersburg, Maryland, Millan is a senior at the George Washington University studying Biological Anthropology.

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