WASHINGTON, (Reuters) – U.S. employers maintained a strong pace of hiring in October and boosted wages for workers, which could effectively seal the case for a December interest rate increase from the Federal Reserve.
Nonfarm payrolls increased by 161,000 jobs last month amid gains in construction, healthcare and professional and business services, the Labor Department said yesterday. The closely watched employment report was published four days before the Nov. 8 presidential election.
The solid labor market fundamentals were also underscored by revisions to August and September data, which showed 44,000 more jobs created than previously reported. Average hourly earnings rose 10 cents or 0.4 percent in October.
As a result, the year-on-year gain in wages last month rose to 2.8 percent, the largest in nearly 7-1/2 years.
“This was a very good report. With the hourly wage number beginning to accelerate, the Fed will have all the cover it needs to raise rates in December,” said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania.
The report came on the heels of data last week showing an acceleration in economic growth in the third quarter. Businesses have created 15.5 million jobs since 2010, with almost half of them high wage jobs. Even Americans holding low-income jobs are starting to experience wage gains.
