According to data released today by the Bureau of Labor Statistics, total nonfarm payrolls increased by 165,000 jobs in October, above market expectations for a gain of 65,000. August and September also saw a combined upward revision of 84,000 jobs. Employment gains were led by professional and business services (+70,000) followed by health care (+42,000) and transportation and warehousing (+25,000). The unemployment rate edged down to 4.1%, against market expectations of 4.2%. Meanwhile, the labor force participation rate continued to recover for the third consecutive month, increasing to 61.9% from 61.8% in September.
The ABA Office of the Chief Economist believes that the strong payroll report reflects a resilient labor market despite broader economic uncertainty. Continued job growth, low unemployment and steady labor demand should support household income growth and consumer spending, providing a positive backdrop for both business and consumer loan demand.
