Unemployment Rates Fall for US Teens and Older Workers

“Metals have breached their respective key support levels on dollar hitting multi-month high”.

Futures trading indicates investors are pricing in a 70 percent probability the Fed will raise rates in December, up from 56 percent on Thursday, according to the CME Group.

Economists had said ahead of Friday’s report that monthly job gains above 150,000 in October and November would be sufficient grounds for the first increase in overnight borrowing costs since 2006. Evans, a voter on Fed policy this year under its rotating system, has long advocated for an initial rate hike in 2016 but softened his stance in October when he said adhering to a gradual rate path was more important than the timing of liftoff.

Speaking in Congress this week, Federal Reserve Chair Janet Yellen left open the possibility of an interest rate hike, while also saying it would be “very gradual”. “We have a recovering economy… households are in better shape”, Ms Yellen said.

A Reuters survey of banks that deal directly with the Fed showed 15 of the 17 so-called primary dealers expect monetary policy tightening next month.

“We have to conclude a rate hike is coming (on) December 16 unless remaining data releases undermine the message from today’s employment report”, said Chris Low, chief economist at FTN Financial.

Export-intensive manufacturers that make goods such as heavy machinery and companies that extract fossil fuels have been battered by a strong dollar and plunging oil prices.

The gap between yields on Treasuries maturing in two and five years widened to 0.84 percentage point, the highest since August 18, as speculation begins to build for a second Fed rate increase.

“Increases in the minimum wage and a surge in hiring of low-wage workers was a primary reason for improvements in consumer sentiment in October”. Wages are now 2.5 percent higher than 12 months ago – comfortably above inflation. Average hourly earnings rose nine cents to $25.20, which is a 2.5% rise on a year earlier.

One notable aspect of October’s employment summary is that the U-6 unemployment rate, which is defined as the total number of unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force, fell below double digits in October at 9.8 percent.

The employment-population ratio rose to 59.3 percent from 59.2 percent in September. Moreover, broader labor market indicators improved as the “underemployment” (U-6) rate declined to its lowest level since May 2008 amid a substantial decline in part-time work for economic reasons.

White-collar businesses added 78,000 profession jobs.

Production of durable goods, in fact, showed a decrease of 3,000 payrolls despite increases in the automotive sector, but it was offset by gains in nondurable goods.

October’s job growth occurred “in professional and business services, health care, retail trade, food services and drinking places, and construction”, the Bureau of Labor Statistics says. Retailers continued to add jobs as the holiday season approaches, with almost 44,000 new hires.