U.S. non-farm employment increased by 165,000 in October, unemployment rate 4.1%
The Labor Department raised data for August and September, and the market expects the probability of the Federal Reserve raising interest rates in December to rise to 76.8%
Quick Look
- Data from the U.S.
- Department of Labor showed that non-farm employment increased by 165,000 in October and the unemployment rate was 4.1%, higher than the average monthly increase in the past 12 months; the Department of Labor raised the data for August and September; professional and business services, health care, and transportation and warehousing are the main sources of employment growth; average hourly wages in the private sector increased by 3.1% year-on-year; the Associated Press analysis said that strong employment growth may make the Federal Reserve pay more attention to curbing inflation; the market expects the probability of the Federal Reserve to raise interest rates in December is 76.8%.
AI-generated summary
Why It Matters
In September this year, the Federal Reserve announced an interest rate hike for the first time in more than three years, and chose to keep interest rates unchanged at the subsequent interest rate meeting in October.
Data released by the U.S. Department of Labor on the 6th showed that the number of non-farm jobs in the United States increased by 165,000 in October, and the unemployment rate was 4.1%.
The number of new non-farm jobs in the United States in October was higher than the average monthly increase of 48,000 in the past 12 months. The U.S. Department of Labor also raised its non-farm payroll data for August and September. The total number of workers in the two months increased by 84,000 compared with the previously announced data.
Data show that U.S. employment growth in October came mainly from professional and business services, health care, and transportation and warehousing. Among them, 70,000 new jobs were added in professional and business services, 42,000 new jobs were added in the health care industry, and 25,000 new jobs were added in the transportation and warehousing industry.
In terms of wages, the average hourly wage of non-agricultural employees in the U.S. private sector rose 14 cents to $38 in October, a year-on-year increase of 3.1%.
Associated Press analysis pointed out that strong employment growth data may increase the Federal Reserve's confidence in labor market conditions, allowing it to focus more policy attention on curbing persistently high inflation.
In September this year, the Federal Reserve announced an interest rate hike for the first time in more than three years, and chose to keep interest rates unchanged at the subsequent interest rate meeting in October.
As of press time, the Chicago Mercantile Exchange's FedWatch Tool showed that the market expected the probability of the Federal Reserve to raise interest rates in December to be 76.8%, an increase of nearly 10 percentage points from a day ago.
What to Watch
AI outlook — possibilities, not facts
The Fed will raise interest rates at its December rate meeting
Likely · Within weeks
Open Questions
- Will the Fed finally raise interest rates at its December rate meeting?
- How much will the rate hike be?
- How will employment data trend in the coming months?
