The U.S. economy added 261,000 jobs in October, bouncing back from September that was ravaged by hurricanes. But as Fred Katayama reports, wage growth was flat.
Employers in the U.S. pumped up hiring in October, adding 261,000 to the payrolls. But that was much less than economists had expected. September's job numbers were revised upward to a gain of 18,000 from the previously reported loss due to the impact of Hurricanes Harvey and Irma that slammed the South. Following those storms, temporarily unemployed lower paid industry workers returned to the jobs market in October. But that held down wage growth. The jobless rate ticked lower to 4.1 percent because people left the workforce. Wells Fargo Investment Institute's global equity strategist Sean Lynch says the weak wage growth won't keep the Federal Reserve from raising interest rates in December, saying, "Flat wages doesn't concerns us too much. We do think wage pressure could start to weigh on the markets next year in a tight labor market." Posting the biggest job gains was a sector that bounced back from the hurricanes: leisure and hospitality such as restaurants and bars. Also adding lots of jobs: healthcare and professional and business services. Shedding payrolls: mining and information. Following the report, the dollar and Treasury yields fell. Wall Street opened higher.