Stock futures were indicating a lower start, but turned higher after a better-than-expected employment report.
Nonfarm payrolls surged 151,000 in October, after a revised 41,000 decline in September and a 1,000 decrease in August. The October number came in well above the 60,000 increase that was generally expected and the August and September numbers were revised higher by 110,000. The private sector added 159,000 jobs, after a revised 107,000 boost in September. Economists were expecting an 85,000 increase for private payrolls. Government employment fell less-than-expected, falling by only 8,000 after a 148,000 decline in September.
Average hourly earnings matched expectations by gaining 0.2% in October after rising 0.1% in September. The average workweek increased to 34.3 hours from 34.2, slightly topping expectations for 34.2 hours. The headline unemployment rate still stands at 9.6%, as expected.
Today’s report shows the labor sector healing more than anticipated. This is good news for the economy, though there is still a long way to go to return to pre-recession unemployment levels.
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