The October jobs report released Friday showed the U.S. economy added a stronger-than-anticipated 531,000 jobs last month, with the unemployment rate falling to 4.6% from 4.8% in the prior month. Economists surveyed by The Wall Street Journal had expected a gain of 450,000 jobs. The unemployment rate was forecast to fall to 4.7%. Read: U.S. adds 531,000 jobs as economy recovers
Below are initial reactions from analysts and economists as U.S. stocks
traded sharply higher.
“The clouds hanging over the labor market are dissipating. The October jobs report pointed to a reacceleration in job creation supported by improving health conditions and gradually rebounding labor supply,” said Gregory Daco, chief U.S. economist at Oxford Economics.
“The re-rebound is underway, as Covid cases subside. We think job gains of one-million plus are a good bet for both November and December,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics.
“Fed Chair Powell is probably overstating job slack, given the different demographics around the pandemic shock. My opinion remains unchanged in that the jobs markets are tighter than he thinks. Almost all of the still lost jobs remain concentrated in two sectors: leisure and hospitality,” said Derek Holt, head of capital markets economics at Scotiabank.
The ongoing decline in the unemployment rate and strong wage growth suggest labor market slack is diminishing rapidly. In short there is probably still some slack to work through but the wage data suggest a relatively tight labor market,” said Michelle Myer, U.S. economist BofA Securities.