US Employment Growth Stronger Than Expected

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Employment in the United States grew faster than expected in October. According to figures from the US Department of Labour, the number of new jobs in the world’s largest economy also grew faster than in September.

 

The number of jobs, excluding the agricultural sector, increased by 531,000 last month. On average, economists had expected an increase of 450,000 new jobs. However, the September figure was markedly revised upwards to 312,000 new jobs, from a previously reported 194,000. As a result, the U.S. unemployment rate rose to 4.6 percent from 4.8 percent a month earlier.

Investors always look forward to the government’s monthly jobs report, as the Federal Reserve uses the numbers in shaping its interest rate policy. ON WEDNESDAY, the US umbrella organization of central banks announced that it will start phasing out its corona support measures later this month as the economy shows a strong recovery from the corona crisis.

In particular, the leisure and hospitality sectors saw more jobs, thanks to the declining number of corona infections in the US and vaccinations against the virus. But employment also grew in the industry, the service sector and construction. There was, however, a decline in employment in the government sector.

In fact, many companies struggle to find enough staff and offer higher wages and other incentives to get people. On an annual basis, average hourly wages rose 4.9 percent, the most substantial increase since February. These higher labour costs are further driving inflation in the US, as companies pass on the cost increase in their selling prices. Inflation is also being driven by global supply problems and high energy prices.

Despite this, the US job market has not yet fully recovered from the pandemic, as there are still millions of fewer jobs than before the outbreak. Many people who became unemployed during the crisis have not yet started looking for new work. In addition, the US government stopped providing corona support checks for households in September.

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