Friday, November 4, 2016

Economists React to the October Jobs Report: ‘A Big Positive for Income’

From Real Time Economics:
In the last major economic data point to drop ahead of Tuesday’s election, Friday’s jobs report showed 161,000 nonfarm jobs were added in October, according to the Labor Department. Average hourly wages posted their biggest annual growth since mid-2009. Here are some reactions from economists and analysts:

“As the job market gets tighter, firms are responding to tougher competition for workers by raising pay. This is a big positive for income growth, consumer spending, and the overall economy.” —Stuart Hoffman, PNC Financial Services

“The October employment report was nothing special….This report leaves expectations for a Fed rate hike in limbo, which could prove mixed for markets today. The report was modestly positive, but not strong enough to provide a full green light for a December Fed rate hike.” —Jason Schenker, Prestige Economics LLC

“The October jobs report was as good as an optimist dared hope for…With hourly earnings up 2.8% year-over-year, the fastest since the crisis, workers are sharing the benefits. If you wanted to show that the economy is still getting better for the typical voter, this report gives you what you needed.” —Jed Kolko,

“Unfortunately, manufacturing job growth remains virtually nonexistent. Many of those separated from this sector for a long time, perhaps lacking sufficient meaningful skills to get back into the workforce, feel like their government has forgotten them. In this report, we see that the number of long-term unemployed, meaning those jobless for a half-year or more, was unchanged at two million. They account for one-quarter of the unemployed.” —Mark Hamrick,