The United States added 638,000 jobs in October, vs 530,000 expected. Kate Moore, head of thematic strategy at BlackRock's Global Allocation Investment team, Nada Eissa, Georgetown professor and former deputy assistant treasury secretary for economic policy under President George W. Bush, Austan Goolsbee, professor at the University of Chicago Booth School and former Chairman of the Council of Economic Advisors, join "Squawk Box" to give their initial reaction to the October jobs report. For access to live and exclusive video from CNBC subscribe to CNBC PRO: [ Ссылка ]
Employment growth was better than expected in October and the unemployment rate fell sharply even as the U.S. faces the challenge of surging coronavirus cases and the impact they could have on the nascent economic recovery.
The Labor Department reported Friday that nonfarm payrolls increased by 638,000 and the unemployment rate was at 6.9%. Economists surveyed by Dow Jones had been looking for a payroll gain of 530,000 and an unemployment rate of 7.7%, a touch lower than the September level of 7.9%.
October’s gain was just slightly off the September pace of 672,000.
The jobless rate decline was positive as it came with a labor force participation rate that rose 0.3 percentage points to 61.7%. An alternative measure that includes discouraged workers and those holding part-time jobs for economic reasons also fell, to 12.1% from 12.8% a month ago.
The survey of households showed an even stronger level of job growth, with the total employment level rising by 2.24 million and the employment-to-population ratio increasing by 0.8 percentage points to 57.4%. The household survey also showed a decline of 1.52 million in the total unemployed level and a drop of 541,000 in those considered not in the labor force.
October’s gains would have been even better were it not for the loss of 147,000 Census workers that contributed to an overall fall of 268,000 in government jobs. In all, private job creation came to 906,000, better than September’s 892,000.
Those reporting that they had been out of work because their employer had lost business or closed during the pandemic also dropped considerably, falling to 15.1 million from 19.4 million in September.
Markets reacted somewhat positively to the news, with Dow futures erasing most of their earlier losses.
The biggest job gains came in the hardest-hit sector during the pandemic, as leisure and hospitality jumped by 271,000. Of that total, bars and restaurants increased 192,000.
“The strength of this report is really amazing in the face of rising coronavirus cases,” said Michael Arone, chief investment strategist at State Street Global Advisors. “You would have expected that to start to show up in the data, particularly in places like leisure and hospitality, where the numbers are incredibly strong.”
» Subscribe to CNBC TV: [ Ссылка ]
» Subscribe to CNBC: [ Ссылка ]
» Subscribe to CNBC Classic: [ Ссылка ]
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: [ Ссылка ]
Connect with CNBC News Online
Get the latest news: [ Ссылка ]
Follow CNBC on LinkedIn: [ Ссылка ]
Follow CNBC News on Facebook: [ Ссылка ]
Follow CNBC News on Twitter: [ Ссылка ]
Follow CNBC News on Instagram: [ Ссылка ]
[ Ссылка ]
#CNBC
#CNBCTV
