Employers added 271,000 jobs in October and the unemployment rate fell to 5 percent. The solid report increases the chance for a Fed rate hike. Shartia Brantley reports.
The U.S. labor market rebounded in October according to the Labor Department. Employers added 271,000 jobs, its biggest increase since December 2014. The unemployment rate fell to 5 percent, a level not seen since April 2008. Huge gains in professional services and a bounce back in construction offset a decline in mining. Economists polled by Reuters expected non farm payrolls to increase by 180,000. Average hourly wages ticked up slightly in October. The August and September figures were revised to show a net gain over the two months. The labor force participation rate held steady at 62.4 percent. The Fed has been monitoring the labor market as it considers its first rate hike in nearly a decade. Chicago Fed President Charles Evans telling CNBC Friday morning that today's report bolsters the case for a December interest rate hike. The Conference Board's Gad Levanon: SOUNDBITE: GAD LEVANON, MANAGING DIRECTOR, THE CONFERENCE BOARD IN (ENGLISH) SAYING: "I think even in the recent days there was a beginning of a I would say a tendency towards hiking in December and this report increases the probability significantly." The next Fed meeting is on December 15th.