Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Saturday, 5 November 2016

Fastest US earnings growth since 2009

73 months of job gains

The US Bureau or Labor Statistics reported that the US economy added +161,000 jobs in October, with upwards revisions to the two preceding months totalling +44,000.

That's a tidy result! 

This means that over the past three months the economy added a healthy +528,000 positions, or +176,000 per month. 

Healthcare employment increased by +31,000 on October to be +412,000 over the past 12 months, while professional and business services added another +42,000 positions for a total of +542,000 over the year. 

73 consecutive months of job gains mean that the previous record of 48 months has long since been smoked. 

Average monthly employment gains have been tracking +181,000 this year, apparently well ahead of the rate required to push unemployment down. 

With the Obama stint drawing to a close, we can see that more than 11 million private sector jobs have been added on a net basis, despite his office overseeing the tail-end of the 2009 downturn. 

The unemployment rate ticked down from 5 per cent to 4.9 per cent. 

The best part of the release was that average hourly earnings grew by +2.8 per cent over the year for the strongest result since June 2009. 

Endless debate about whether low rates have worked/are working/are yet to work.

That last chart is key. Interest rate hikes to follow, probably in December.