The jobs report published Friday showed that jobs continued to rise at a steady pace in the month of October. In addition wages continues to rise as well. Both are good indications the U.S economy modestly progresses in the beginning of the fourth quarter of 2016.
John Silvia, chief economist at Wells Fargo Securities LLC in Charlotte, North Carolina said in a statement, “This is a good, solid report, consistent with the fed moving in December and certainly consistent with 2 percent economic growth… Growth across wages was strong, which is going to reinforce the Fed’s view.”
The job report is another matric according to which the Federal Reserve will make a decision this December on whether or not to raise interest rates. After encouraging numbers on manufacturing and GDP growth last month, the job reports seems to further indicate a possible rate hike.
Paul Ashworth, chief U.S. economist at Capital Economics, in a note to clients, “The solid gain in employment and the acceleration in average hourly earnings growth in October will increase expectations that the Fed will hike interest rates in December.”