US Jobless Rate At July 2008 Low Of 5.8%

Written By Unknown on Minggu, 09 November 2014 | 00.02

The US jobless rate has hit its lowest level since July 2008, with the economy creating 214,000 net new jobs in October.

The fall in the rate from 5.9% in September was unexpected - and highlighted some greater resilience in the labour market as more people joined the workforce.

The data was released just three days after voters, frustrated by the economy, gave President Barack Obama a kicking in the midterm elections.

Economists polled by Reuters had forecast 231,000 new jobs last month but the performance meant that job growth, following revisions, has now exceeded 200,000 in each of the last nine months, sufficient strength to keep the economy on a higher growth path.

It expanded at an annualised rate of 3.5% in the third quarter, despite early signs of weaker global demand.

The market focus was on wages, in addition to the core job numbers, as employment gains on their own will probably not be enough to convince the Federal Reserve to start raising interest rates before the second half of 2015.

Kept at near-zero since December 2008, economists expect the Fed will want to see real evidence of rising wages before raising rates so not to risk choking off economic recovery.

The Labor Department data said average hourly earnings rose only three cents last month, leaving the year-on-year change below pre-recession levels at 2%.

The participation rate, or the share of working-age Americans who are employed or at least looking for a job, increased to 62.8% while the employment-to-population ratio also rose to its highest level since 2009.

World stock markets barely moved in reaction to the figures - seen as a crucial indicator of US economic strength - with the data doing little to alter rate rise forecasts.


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