Employment in the United States exceeded analysts’ expectations when by adding 128,000 jobs last month, according to its Bureau of Labor Statistics.
The better-than-predicted results come in spite of an ongoing strike by some 40,000 employees of car manufacturer General Motors, who would have been considered unemployed in the jobs data. Come next month, that figure should be added back to the employment numbers now that the strike had ended.
Most forecasts for new jobs ranged between 75,000 and 85,000 for October.
However, unemployment inched up marginally to 3.6 per cent, from 3.5 per cent. This is still among the lowest levels recorded in 50 years.
The breakdown of new jobs saw restaurants and bars accounting for the greatest number with 48,000 followed by professional jobs (22,000), social assistance providers (20,000) and financial companies (16,000).
What’s more, employment data for August and September were also revised upwards to 219,000 and 180,000 respectively. This reflects increases of 51,000 and 44,000 in that order.
The economy should continue to fare well as economist expect recent rate interest- rate cuts by the Federal Reserve to cut costs as borrowing expenses drop.
The Dow Jones Industrial Average and S&P 500 opened higher Friday as the market responded to the news.