Payrolls rose by 134,000 jobs in September, the smallest gain in a year, after Hurricane Florence drenched North and SC, weighing on restaurant and retail employment.
The long-awaited gains follow relatively tepid increases throughout the current expansion, which in mid-2019 will become the longest in US history. "That was shocking for a number of people, and that was a tremendous number by any standard".
Employment gains have averaged 218,000 jobs per month over the past three months, double the roughly 100,000 needed to keep up with growth in the working-age population.
"These are incredible numbers", Trump tweeted. Combined, the two quarters produced the strongest six-month stretch of growth in four years.
The U.S. labor market continues to fire on all cylinders. -China trade battle won't end soon.
Following the market-moving job report, U.S. Labor Department Secretary Alexander Acosta credited President Donald Trump for "another booming month of job creation", noting that the jobless rate held at the lowest level since 1969 for the second straight month.
Every major sector added employees, including manufacturing, where there has been evidence that the tariffs are starting to bite.
"This is the best labor environment in over a decade", said Joseph Brusuelas, chief economist at RSM U.S., an worldwide consulting firm.
These long-term unemployed accounted for 22.5 percent of the total unemployed.
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His letter also noted, "In short, during the Committee's time-sensitive investigation of allegations against Judge Kavanaugh, Ms. It is illegal to make materially false, fictitious, or fraudulent statements to Congressional investigators.
FBN's Blake Burman breaks down the October jobs report.
Despite the excitement over the 3.1 percent wage growth, some economists caution this is not a "magic number" and should be viewed with a grain of salt. Weekly wages for high-school dropouts have risen 23.4% since 2010, outpacing wage growth for college graduates, which has been 14.4% since 2010, not adjusted for inflation.
All eyes were on the U.S. jobs report before the open, which showed hiring picked up more than expected in October.
The country now has 7.1 million openings, a record high, the Labor Department announced Tuesday. "I don't think the wage growth will put a brake on economic growth".
The economy needs to expand by about 120,000 jobs a month to keep up with new workers coming in.
The Bureau of Labor Statistics said job gains occurred in healthcare, manufacturing, construction and transportation and warehousing.
Employment at hospitals, nursing homes and other medical facilities surged by 36,000 positions. Retail payrolls rose by only 2,400, likely restrained by layoffs related to Steinhoff's Mattress Firm bankruptcy as well as some store closures by Sears Holdings Corp (SHLDQ.PK). Construction expanded by 30,000 roles, almost half of which focus on residential homes. Home prices also have been rising at a much faster rate than incomes, eroding affordability. The latest numbers "may look good" but should be considered alongside other economic policies, he said. And in January, the minimum wage will increase in 18 states. "A awful idea", he said, adding that kind of law would hurt small businesses. And so far, inflation remains in check. The advances are probably still not rapid enough, though, to spur inflation concerns among Fed officials, rather keeping them on a path of gradual interest-rate hikes. The hospitality sector gained 42,000 jobs, the strongest bounce since last October's recovery from Hurricanes Harvey and Irma. Average monthly hiring this year is above the pace of 2017.
Still, economists say wages are trending slightly higher.
"A tight labor market causes employers to compete for the workers they want to attract and retain, and one way they compete is on salary", Adams said. September's payrolls were depressed by the hurricane that hit the southeast US that month; those numbers were revised down to a gain of 118,000 from 134,000 originally estimated.
Business falters amid severe weather, according to a Fed study.