Bright News on Wages in October Jobs Report

By Toni Vranjes

November 4, 2016

Wages jumped by 10 cents last month, providing some upbeat news for employees. And workers can expect to see even higher wages in coming years, according to an economist.

The October jobs report also showed that employers added 161,000 new jobs, and that job growth for the previous two months was revised upwards. According to the Labor Department, the unemployment rate dropped from 5 percent to 4.9 percent, as the labor force decreased by 195,000.

down_arrow_4_pt_9“The really good news in the past couple of months has been the acceleration in wage inflation,” wrote IHS Markit Chief Economist Nariman Behravesh in an analysis. “This means that the tightening in the labor market is finally beginning to benefit workers – and will support stable consumer spending growth. This (gradual) acceleration in wages can be expected to continue over the next couple of years.”

In October, professional and business services added an especially large number of jobs, at 43,000. Other areas of employment growth were health care, at 31,000, and financial activities, which rose by 14,000.

Meanwhile, for August and September combined, the government revised job creation upwards by 44,000.

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