Better than expected employment data may inspire the Federal Reserve to taper America’s economic stimulus next month. The latest data released by the Bureau of Labor Statistics show that the world’s biggest economy shrugged off the impact of the three-week government shutdown and created 204,000 new jobs. The unexpected results according to some market observers may prompt the Fed to think of its stimulus.
Currently, the Fed is giving away $85bn a month in its bond buying program; however, later this year in the December meeting, it may think of tapering it. Whereas total nonfarm payroll employment rose by 204,000 in October, the unemployment rate according to LBS was little changed at 7.3 percent. The U.S. Bureau of Labor Statistics says that employment increased in leisure and hospitality the most.
Contribution of Various Sectors Increased to an Extent
Apart for leisure and hospitality, some other sectors that generated jobs the most were retail trade, professional and technical services, manufacturing, and health care. The data further shows that there has been only little change in the number of unemployed persons which went up to 11.3 million. Similarly, the unemployment rate went slightly up to 7.3 percent for October.
Despite the positive indications, the U.S. Bureau of Labor Statistics’ data shows that among the unemployed, the number who reported being on temporary layoff increased by 448,000. Interestingly enough this figure includes furloughed federal employees who were classified as unemployed on temporary layoff under the definitions used in the household survey.
Unemployment among the Major Groups
The U.S. Bureau of Labor Statistics maintains that teenagers still form the major chunk of unemployed people in the country with a 22.2 percent share. Some other groups with major unemployment include whites (6.3 percent), blacks (13.1 percent), and Hispanics (9.1 percent). Also, there has not been any improvement in these groups in the last month.
Whereas the unemployment rates for adult men was 7.0 percent, for adult women is slightly less at 6.4 percent in October. The best placed people seem to be Asians as only 5.2 percent of them are jobless.
Revised Data for September
In its revised data the Bureau of Labor Statistics showed that estimates of employment growth in the previous two months by a total of 60,000. Whereas August payrolls increased from 193,000 to 238,000, the data for September is 148,000 to 163,000.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org