Friday, November 7, 2014

Payrolls Rise 214,000, Unemployment Rate Falls

Total nonfarm payroll employment rose by 214,000 in October, in line with the 222,000 average over the past 12 months. The unemployment rate edged down to 5.8%, the lowest unemployment rate since July 2008. Both the September and August readings were revised upward by 8,000 and 23,000 respectively, for a net gain of 31,000 more jobs.

Employment increases were predominantly in the food services and drinking places, retail trade and health care. Food services added 42,000 jobs, well above the average gain of 26,000 over the past 12 months. Retail trade payrolls rose by 27,000 and healthcare added 25,000 jobs.

The participation rate was 62.8, in line with the last 12 months but still below the long-run average. The number of unemployed individuals declined by 267,000 in October. The number of new entrants in the labor force was 416,000.

Over the year, wage growth in average hourly earnings remained at 2%, consistent with growth since the end of the recession.

The number of long term-term unemployed, those jobless for 27 weeks or more, dropped by just 38,000 to 2.9 million. This group, which accounts for 32% of the unemployed, declined by 1.1 million in the past 12 months. The number of involuntary part-time workers, individuals employed part time for economic reasons, declined by 76,000 in October to 7 million, nearly 1 million less than October of last year.

"At the current pace of job creation (through October), the economy will add 2.74 million jobs this year (2.67 million private jobs). Right now, 2014 is on pace to be the best year for both total and private sector job growth since 1999," said ABA Chief Economist Jim Chessen.

Read the BLS report.

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