US: Strong jobs report in October – Nordea Markets

Kjetil Olsen, Research Analyst at Nordea Markets, explains that the US labour market continues to strengthen and job gains at 250k stronger than expected.

Key Quotes

“Job gains rebounded after a low reading in September due to effects of Hurricane Florence. The September number was revised down from 134k to 118k, average of the last three months is 218k, in line with trend in 2018.”

“Wage growth is key and rose 0.2% m/m, corresponding to 3.1 y/y. Momentum is even stronger. The annual hourly earnings figures therefore confirm the clear upward trend in the employment cost index.”

“Unemployment was unchanged at 3.7 %, the lowest level since 1969. Broad unemployment (U6) was down from 7.5 % to 7.4 %.”