You better work: A jobs report deep dive
SPY•The US economy added 165,000 jobs in October, beating expectations by 100,000, while unemployment fell to 4.1%. Markets priced in a 77.1% chance of a Federal Reserve rate hike in December, up from 66.9% the previous day.
1. Jobs beat expectations
The US economy added 165,000 jobs in October, while September payrolls were revised up to 60,000 from 29,000 and August payrolls rose to 186,000. Private-sector employers added 159,000 jobs, including 144,000 in services; government payrolls grew by 6,000. Construction employment fell by 3,000.
2. Wages and rate outlook
Average hourly wages rose 0.4% month over month, above the 0.3% consensus, while annual wage growth eased to 3.1% from a revised 3.2% in September. Markets priced in a 77.1% chance of a December Fed rate hike, up from 66.9% the previous day.
3. Mixed labor indicators
Unemployment fell to 4.1% from 4.2%, and labor force participation edged up to 61.9% from 61.8%. Average unemployment duration increased to 28.1 weeks from 25.4, while underemployment rose to 7.9% from 7.6%.
