.. But Unlikely To Impact Fed Policy (2/2)

From a Fed policy perspective, though, the October payrolls report is unlikely to a game changer.

• While the headline number and revisions beat handily, participation is not doing much (it might take some time for that to move up convincingly, and that's a big criteria for hiking as Powell reminded Weds), and wage growth was in line with expectations so this report is not fanning the inflation flames.
• Perhaps some further encouragement came in the broad swathe of industries enjoying job gains as we emerge from the Delta wave (leisure/hospitality +164k, prof biz services +100k, manufacturing +60k, transport/warehousing +54k, construction +44k, healthcare +37k, retail trade +35k, and the only significant minus was in gov't education (-65k)). the prime-age employment to population ratio ticked up 0.3pp vs stalling in October.
• Little here for the Fed to reconsider the taper pace at the Dec meeting though, and there's another jobs report in the interim anyway.