Strong hiring drives unemployment rate to 5%

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NEW YORK  — The job market regained momentum in a big way in October.

The U.S. economy added 271,000 jobs in October, far better than sluggish gains in September and any forecasts.

The unemployment rate fell to 5%, its lowest level since 2008.

Before Friday’s good job news, the concern had been that the global economic slowdown was starting to affect hiring in the United States. Job growth has slowed down considerably since July.

But Friday’s strong number tones down those fears — for now.

Wage growth showed signs of life too. Average hourly earnings rose 2.5%, its best pick up in years.

The solid jobs number has major implications for the Federal Reserve. Its officials, led by Chair Janet Yellen, are strongly considering raising interest rates in December for the first time in almost a decade. Rates have been at zero since the financial crisis in 2008.

Today’s better-than-expected report increases the odds the Fed will act in December.

3 comments

  • Al P

    Job participation rate is the lowest it has been in over 50 years. Millions of people gave up looking for jobs. True unemployment rates are astronomical compared to what the media is reporting. No truth in journalism anymore, how about it channel six?? You are more concerned with deleting comments than you are in reporting the truth.

  • Jordan Parker

    More than likely most of them are part time jobs for the upcoming Christmas shopping season. And, if following true to form, the numbers will probably be revised downward in a few short weeks.

    The truth is this: So many people have given up, retired early, taken fictional disability, and run out of government benefits that they just quit applying for unemployment benefits.

    Meanwhile, costs for the average family have risen—my own health care insurance costs doubled (mine is up to $550/month… contrast this to my $25/month auto insurance from Insurance Panda… or my $10/month renters insurance… both private-enterprise!).

    320 million people in the country. 94.5 million not in the labor force. 5% unemployment. Don’t you just love government math?

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