Politics

Nonfarm Employment Up By 271,000 Jobs, As Unemployment Rate Holds At 5%

| by Kathryn Schroeder
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Nonfarm payroll in the U.S. increased by 271,000 jobs in October, while the unemployment rate has remained essentially unchanged at 5 percent, according to a Nov. 6 news release by the Bureau of Labor Statistics.

The increase in jobs occurred in professional and business services, health care, retail trade, food services and drinking places, and construction, the BLS reports.

Over the past 12 months, the unemployment rate has decreased by 0.7 percent, with the number of unemployed persons declining by 1.1 million.

Teenagers have the highest unemployment rate with 15.9 percent, African-Americans come in second at 9.2 percent and Hispanics third at 6.3 percent. Adult men and adult women are nearly equal at 4.7 percent and 4.5 percent, respectively.

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Overall, white people have an unemployment rate of 4.4 percent.

The lowest unemployment rate is among Asians, at 3.5 percent.

The increase in jobs across the country is not the only good news from the latest BLS report; wages are up, too.

The average hourly earnings for all employees on private nonfarm payrolls rose by 9 cents to $25.20 in October. Over the past year, hourly earnings have risen by 2.5 percent.

"We can check off a number of good-news boxes with this report. It's hard to find any bad-news boxes to check off," Mark Hamrick, senior economic analyst at Bankrate.com, told CNBC. "This is a report that should prompt more Americans to truly give thanks later this month. Maybe they can even add in an extra side dish with their Thanksgiving meal."

It is possible that the nonfarm payrolls report may lead to the Federal Reserve approving a funds rate hike, the first in nine years. Before the payrolls report was released in October, traders were pricing in a 58 percent chance of a hike in December, according to CNBC. That percentage surged to 74 percent after the report was released.

"It looks like the market is telling you it's fairly in the cards," J.J. Kinahan, chief strategist for TD Ameritrade, said. "One thing we know about rate moves is once they move they move at a very quick pace."

Sources: CNBC, Bureau of Labor Statistics / Photo credit: neetalparekh/Flickr, SurFeRGiRL30/Flickr