ARLINGTON, Va.—The latest jobs report – with 261,000 jobs gained in October – keeps the Fed on track to raise rates next month, according to NAFCU Chief Economist and Vice President of Research Curt Long.
The unemployment rate decreased to 4.1% in October as 765,000 workers left the labor force, representing the lowest unemployment rate since 2000.
"The October jobs report was modestly positive, on net. Job growth fell slightly below expectations, but when paired with the sizable upward revisions to prior-month data, the results were solid," said Long. "However, wage growth and labor force participation both slipped during the month. The data is likely to continue to be choppy for the next few months due to weather impact, but this report was strong enough to keep the Fed on track for a rate hike in December."
The Federal Open Market Committee’s next two-day monetary policy meeting is set for Dec. 12-13.
In other report data, total private-sector payroll employment increased by 252,000 jobs during October. The goods-producing sector increased by 33,000 jobs, while the service sector increased by 219,000 jobs. Public sector employment rose by 9,000 from the prior month, Long said.
Average hourly earnings decreased 1 cent to $26.53 in October. Over the last 12 months, wages are up 2.4%. Since 2009, year-over-year wage growth has averaged just 2.2%, Long noted.