After a two month lull period, the U.S. labor market came back with a strong report for the month of October. The economy added 271,000 in payrolls while the unemployment rate dropped to 5% which was led by health care, temporary help & retailers according to Sho Chandra of Bloomberg. This is the lowest unemployment rate since April 2008.
“It’s a solid labor market,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York and a former economist at the Fed. “The report is pretty good across the board. December is now a very high likelihood for the Fed to hike rates.”
The odds of December Federal Reserve rate increase rise to 70% which is according to federal funds futures market. But the best news of all could be that the average hourly wage rose by .4% from the previous month. Hopefully this trend continues.
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