US job growth expected to accelerate with strong wage gains

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All the data points to a still-strong labor market as employers will have to use higher wages as the primary attraction for talent.

"The strength in the ADP report supports our view that the underlying trend in the labor market remains upbeat", said Daniel Silver, an economist at JPMorgan in NY.

"The economy is in great shape with lots of jobs and more money in workers' paychecks and this should help bolster the outlook as the financial markets stumble", said Chris Rupkey, chief economist at MUFG in NY. The consumer-price index rose 2.3% from a year earlier in September, the Labor Department said.

Nonfarm payrolls increased by 250,000 jobs last month as employment in the leisure and hospitality sector bounced back after being held down by Hurricane Florence, which drenched North and SC in mid-September.

Because, also on Wednesday, ADP and Moody's Analytics reported a record gain of 227,000 new private-sector hires in October, which was not covered in the Labor Department's quarterly report.

According to a Reuters survey of economists, nonfarm payrolls probably rebounded by 190,000 jobs in October after Florence depressed restaurant and retail payrolls in September. "Testimonial to the robust employment picture is the broad-based gains in jobs across industries". Government payrolls are expected to have increase by 7,000 jobs in October.

The Present Situation Index - based on consumers' assessment of current business and labor market conditions - turned in an even bigger gain, rising from 169.4 to 172.8.

The unemployment rate is forecast unchanged at a near 49-year low of 3.7 percent in October.

The two reports also respond differently to hurricanes.

A measure of US consumer confidence, released Tuesday, rose in October to a almost two-decade high.

Compensation for USA workers grew at an accelerating rate in the third quarter, a sign a historically tight labor market is yielding better pay for employees.

Oil prices drop as wave of supply meets global economic gloom
US sanctions on Iranian crude oil exports would take effect on November 4, prompting more countries to cut imports from Iran. The Brent crude December LCOc1 futures contract, which expired Wednesday, fell 44 cents to settle at $75.47 a barrel.

Wage growth was boosted by a jump in transportation and warehousing, likely reflecting a shortage of truck drivers.

With 3.7 percent unemployment, some economists view the jobs market as being close to or at full employment. The report shows consumers who live in the South enjoyed the strongest job growth, while those in the West saw their paychecks grow the most.

The employment-cost index, a measure of wages and benefits for civilian workers, rose a seasonally adjusted 0.8% in July through September, the Labor Department said Wednesday.

Economists and investors expect the Fed to continue gradually raising interest rates, including a December increase that would be the year's fourth.

USA wages and salaries rose by the most in a decade while private sector payrolls increased by the most in 8 months in October, suggesting overall job growth accelerated this month after Hurricane Florence weighed on restaurant and retail employment in September.

There were also big gains in construction, professional and business services payrolls, and manufacturing, where employment increased by the most in 10 months.

State and local government wages increased 0.9 percent after advancing 0.5 percent in the second quarter.

Americans boosted their spending by the most in almost four years in the July-September quarter.

Firming wages support the view that inflation will hover around the Fed's 2.0 percent target for a while.

Information for this article was contributed by Heather Long of The Washington Post; by Christopher Rugaber of The Associated Press; and by Shobhana Chandra of Bloomberg News.

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