Despite GM strike, October jobs see gains
Despite a General Motors strike that depressed the month’s numbers, October’s “job report was a solid one which supports [last] week’s Fed decision of a hawkish rate cut,” said NAFCU Chief Economist and Vice President of Research Curt Long. October saw 128,000 jobs added, and the September and August gains were revised up by 44,000 and 51,000 jobs, respectively.
“Job gains were above expectations and the service sector is growing, but wage growth remains slow,” Long added. “More positive revisions of past months’ numbers is a good sign…The labor force participation rate rose to its highest point since 2013, but modest wage growth suggests there is further room to run for the labor market.
“[Federal Reserve] Chairman [Jerome] Powell indicated this week that there is a high bar to clear for any further interest rate moves, whether easing or tightening. The labor market will continue to improve into 2020, providing a sturdy buffer against recession,” Long concluded.
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