In this morning’s data, the economy added 336,000 jobs in September, almost double what was expected. The Leisure and Hospitality industry was relatively strong while Temporary Help Services was relatively weak. The Unemployment Rate held steady at 3.8% and the Labor Force Participation Rate at 62.8% is the same as the previous month. Average Hourly Earnings increased 0.2% in August, slightly less than expected and the same amount as the previous month. Average Hourly Earnings grew 4.2% on an annual basis. In addition, Average Weekly Hours were 34.4, which is the same as the previous month.
Overall, a strong increase in the headline jobs number with strength across a number of industries and a continued low unemployment rate. The labor market remains resilient. Average hourly earnings grew slightly less than expected in September, but the annual increase remains above the 50-year average. The Federal Reserve is likely to stay with its discourse of higher rates for longer until a change in the labor market occurs. How this policy affects consumer spending and company earnings will be key for the economy and markets in the coming months.
Following the release of the jobs report, the yield on the U.S. 10-year treasury ticks substantially higher and equity futures have moved lower as we head into the market open.
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