Positive Jobs Report Could Lead to Rate Hike
Posted on November 7, 2015
The U.S. economy added 271,000 jobs in October. The was the biggest monthly gain of 2015. It was also bigger than economists were expecting.The biggest gain in October was professional and business services which added 78,000 jobs. Health care was next with 45,000 jobs added. Health care followed closely by retail which added 44,000 jobs. The retail industry is looking forward to a robust Black Friday shopping period.
Other industries adding jobs included food services (42,00 jobs) and construction (31,000 jobs). The mining industry lost jobs again with a loss of 5,000 jobs. The mining industry has lost 109,000 jobs since December 2014.
The average hourly earnings for all employees payrolls rose by 9 cents to $25.20 in October. This follows very little change in September (+1 cent). The BLS says hourly earnings have risen by 2.5 percent over the year.
The jobs report could give the Feds the backing it has been waiting for to raise interest rates. Bloomberg Business reports that the odds of a Federal Reserve rate hike in December have climbed to 70%. The New York Times also sees a growing possibility of the fed raising rates.