United States wage growth jumps to its highest rate since 2009

United States wage growth jumps to its highest rate since 2009

White House economic adviser Larry Kudlow joked that he asked President Donald Trump not to tweet details of the October jobs report before they became public.

US employers added a stellar 250,000 jobs last month and raised average pay by the most in almost a decade. For the year, health care employment grew by 323,000.

Average hourly earnings for private workers advanced 3.1% from a year earlier and the unemployment rate was unchanged from September at 3.7%, both matching projections.

The BLS said in its release that Hurricane Michael, which made landfall during the report's reference week, "had no discernible effect on the national employment and unemployment estimates for October".

Average hourly wages rose 3.1 percent in October from a year earlier, the fastest annual gain since 2009. North said that means existing employees are likely working more hours each week as the labor force tightens and employers have a hard time finding workers. In manufacturing, the workweek edged down 0.1 to 41 hours and 3.5 hours of overtime. This suggests pay rates will continue moving higher, which will add to domestic price pressures and keep the pressure on the Federal Reserve to continue raising interest rates.

The dollar was trading higher against a basket of currencies. The probability of another 25 basis-point (one-quarter percentage point) rise in the federal funds target, from 2%-2.25% now, at the December 18-19 meeting of the Federal Open Market Committee continues to hover around 75%, according to Bloomberg data. But the pace of job growth has picked up again, with job gains in every major sector in October. That was expected, partly because wage growth was weak last October. The Fed raised borrowing costs in September for the third time this year. The average so far under Trump is 196,000, a solid number given the low unemployment.

Jeffery Sanford among the workers seeing his pay increase at a faster rate. "Market participants will likely need to adjust their expectations going forward".

"Wages are firming on a nominal basis for workers", said Ernie Tedeschi, head of fiscal analysis at Evercore ISI and a former economist in the Obama administration. Openings exceeded 7.1 million, according to the government's most recent count.

Monthly job growth has averaged a robust 212,000 this year, up from 182,000 in 2017, despite low unemployment and related labor shortages that are making it harder for businesses to find workers.

"Today's jobs report is a landmark in the long recovery since the Great Recession, showing the power of a tight labor market to raise pay for American workers if allowed to run hot for a sufficiently long time", said Andrew Chamberlain, chief economist at the job website

Some advocates, such as the left-leaning Economic Policy Institute, believe interest rates should remain relatively low until nominal wage growth reaches the 3.5% to 4% range at which inflation might start to rise more quickly.

The share of the population in the workforce also rose 0.2 to 60.6 percent.

The rebound in job creation last month was widely expected.

United States non-farm payrolls rose by 250,000 in October, according to the Bureau of Labor Statistics, well above economists' estimates for a gain of 190,000.

Construction companies probably hired more workers in October.

Among other key sectors, transportation and warehousing added 25,000 jobs in October.