October Jobs Report Smashes Expectations as Wages Also Move Upward
The Trump economy defied expectations in October, adding 128,000 jobs despite the effects of a since-settled General Motors strike.
Experts had been predicting that the economy would add no more than 75,000 jobs. In fact, MarketWatch on Thursday told its readers that the report would be “a big dud” due to the impact of the strike on the overall numbers.
In that environment of pessimism, the good news that was announced on Friday sent the Dow futures index up 100 points, CNBC reported.
President Donald Trump was quick to share the economic good news with his Twitter followers.
“Wow, a blowout JOBS number just out, adjusted for revisions and the General Motors strike, 303,000. This is far greater than expectations. USA ROCKS!” Trump tweeted, appearing to total all of the increases announced and citing the GM strike and the loss of 20,000 temporary Census workers whose period of employment expired.
Wow, a blowout JOBS number just out, adjusted for revisions and the General Motors strike, 303,000. This is far greater than expectations. USA ROCKS!
— Donald J. Trump (@realDonaldTrump) November 1, 2019
The unemployment rate for black Americans nudged lower to 5.4 percent, setting a new record, according to the Bureau of Labor Statistics media release. Although the nation’s overall unemployment rate rose to 3.6 percent, up from 3.5 percent in September, the rate remains near levels not seen in 50 years.
The total employment level also climbed higher. According to the figures, 241,000 more people were working, for an overall total of 158.5 million Americans who were employed in October, CNBC reported.
Some commentators said the jobs data showed that regardless of other indicators, the economy remains strong, according to MarketWatch.
“Over the past decade, the labor market has demonstrated surprising strength many times even as other measures of the economy cast a shadow of doubt. It’s doing so again,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors.
“Job creation is firm when you strip out the effects of strikes at GM and a drop in census employment,” said Charles Seville, co-head of Americas Sovereigns at Fitch Ratings.
One final note about the “loss” of manufacturing jobs in this report
The jobs report counts the UAW/GM strike as a jobs “loss” even though these workers are on strike, not unemployed
When you factor the strike out, manufacturing actually **gained** 6,000 jobs last month pic.twitter.com/EFe44tIV0Z
— Zach Parkinson (@AZachParkinson) November 1, 2019
Very Strong Jobs Report
Americans returning to labor market
Yes, we (Americans) are winning!
— Charles V Payne (@cvpayne) November 1, 2019
As more people find work, more people enter the labor force to look for jobs. In October, another 325,000 entered the labor force to swell its ranks to 164.4 million people. The labor force participation rate, which measures the people looking for work as a percentage of those who could potentially be looking for work, also rose 63.3 percent.
Workers are also making more money, the report said. Average hourly earnings rose one-tenth of one percent, meaning that wages in October 2019 were 3 percent high than in October 2018.
In announcing the robust job creation numbers for October, the Bureau of Labor Statistics recalculated some past months, showing even stronger economic growth than had been reported earlier.
The report showed that in August, the economy added 219,000 jobs, instead of the 168,000 initially reported. In September, the economy added 180,000 jobs, not 136,000 as initially announced.
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