This ‘Perfect’ Jobs Report Looks Like a Game-Changer

The Purge

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The October employment report, released Friday ... was all that anybody could have hoped for, and more.

“Perfect” is how Evercore ISI summed up the numbers, which showed steady increases in the number of Americans working and continued moderate pay gains—which, in turn, is inducing more people to come off the sidelines and look for work.

Nonfarm payrolls rose 128,000 last month, much more than the 85,000 that economists had forecast after adjusting for the strike at General Motors. Automotive payrolls were off by 42,000 in October, while government employment fell by 3,000, owing to a reduction of 20,000 temporary Census workers. Moreover, the two preceding months’ tallies were revised up by a total of 94,000.

The unemployment rate did tick up—to 3.6% in October, from the half-century low of 3.5% touched in September—but that also was a sign of strength. The headline jobless rate, which is derived from a separate survey of households, reflected a continued surge of people entering the labor force. Of the 325,000 people who went looking for jobs last month, 241,000 found them.

That’s helped to lift the labor-force participation rate up to 63.3%, a solid gain from 62.8% six months earlier and 62.9% a year ago. The improvement in labor-force participation has been erratic in this expansion and has been “battling ongoing negative demographic trends as the labor force ages and older workers, who have lower participation rates, gain share,” writes Joshua Shapiro, chief U.S. economist at MFR.

The rise in the labor-force participation rate is a “game changer,” adds Evercore ISI. More people entering the workforce will lift the U.S. economy’s potential growth and allow it to continue to expand without creating inflation, the firm’s economists wrote in a client note.

(Excerpt) Read more at barrons.com ...

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Denison from the DEEP STATE will be along in a minute to dispute this from an article from the RED CHINESE DAILY!!!!
 

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