United States: Payrolls growth solid again and unemployment falls to 5.8%
November 7, 2014
Non-farm payrolls grew by 214,000 in October, which was below September’s revised increase of 256,000 (previously reported: +248,000). The reading undershot market expectations of a 235,000 increase in payrolls, but marked the ninth consecutive month of gains above 200,000.
The private sector was almost entirely responsible for new hiring, having added 209,000 jobs in October. The largest gains were registered in leisure and hospitality, professional and business services, and education and health services. The public sector added just 5,000 jobs. The U.S. economy has recovered 9.8 million jobs since February 2010, which marked the trough in the labor market crisis. In fact, the economy now has over a million more people employed than at the January 2008 peak.
The unemployment rate—derived from a different survey—fell from 5.9% in September to 5.8% in October, which represented the lowest print since July 2008. Market analysts had expected the unemployment rate to hold at 5.9%. Despite the steadily decreasing unemployment rate, analysts point out that the labor force participation rate is hovering around its record low and wage growth is limited.
Author: Carl Kelly, Economist