[Ed. Note: To the 94.5 million people in America who are out of the workforce: The Fed thinks you should cheer up, the “official” unemployment rate just fell to 5%.]
from Zero Hedge:
If there was any doubt if the Fed would hike rates in December, it is gone now: October payrolls soared by 271K, smashing not only consensus of 184K, but the highest expected print. This was the highest monthly print since December 2014 when the gain was 329K and pushed the YTD average monthly gain from 199K to 206K.
The household survey likewise posted a solid gain of 320K, with the number of employed rising from 148,800 to 149,120, another post-crisis high.
The unemployment rate dropped from 5.1% to 5.0%, the lowest since April 2008, and most importantly, the average hourly earnings rose from 0.2% to 0.4%, the highest hourly earnings jump since 2009!
The two charts which the Fed will be most focused on are the following, showing both average hourly and weekly earnings rebounded solidly from recent week levels.
The breakdown between full and part-time jobs saw gains in both, with the former rising by 185K, while part-timers increased by 214K in October. As a result full-time jobs have now recovered all their job losses since the recession as shown on the chart below.
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