MNI DATA IMPACT: US Oct Jobs +128k; Unemp 3.6%; AHE +0.2%>

--Sept Payrolls Rev Up To +180k, Aug Jobs Rev Up to +219k; Net +95k

By Brooke Migdon 

     WASHINGTON (MNI) - Payrolls growth was well above expectations in 

October, rising by 128,000 when markets had expected a 85,000 gain. 

     Hourly earnings growth also ticked up two-tenths in October, 

bouncing back from a flat reading in Septmeber. It is up 3.0% from a 

year earlier. 

     Here are some of the key takeaways from the data released Friday: 

     - October payrolls data were well above expectations, posting a 

128,000 increase compared with market expectations for a 85,000 gain. 

And both September and August payrolls were revised much higher, posting 

a net gain of 95,000.  

     - Hourly earnings rose by 0.2% while markets had looked for a 0.3% 

gain, and average weekly hours stayed at 34.4.  

     - The unemployment rate rose marginally to 3.6% from the 

five-decade low of 3.5% seen in September. The labor force participation 

rate also increased slightly by 0.1 percentage point to 63.3% from 63.2% 

last month. The size of the labor force continued to expand, rising to 

164.4 million, but, unlike September's expansion, the number of employed 

and unemployed both increased. 

     Before rounding, the unemployment rate rose to 3.5622% compared to 

3.5168% in September. The U-6 rate increased slightly to 7.0% from 6.9% 

in October. 

     - Private payrolls rose by 131,000 in October, above the 80,000 

increase expected by markets. Earlier in the week, the ADP national 

employment report had recorded a 125,000 gain in private payrolls when 

markets had called for a 110,000 gain. Education and health services 

jobs increased by 39,000 and health care and social assistance 

employment rose by 34,200. 

     - Government payrolls declined by 2,000 in October, reflecting a 

drop in federal employment as temporary Census hiring cools, according 

to the BLS. Manufacturing payrolls also declined by 36,000 this month, 

which markets had expected as the GM-UAW strike left approximately 

47,700 workers temporarily unemployed. Durable goods and motor vehicle 

and parts payrolls both fell by 41,000. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$]