The U.S. unemployment rate fell to the lowest in more than five years in October, as the government’s employment report showed a stronger labor market than had been forecast.
The unemployment rate sank to 4.4% from 4.6% in September, the U.S. Labor Department said. It was the lowest since May 2001. Economists had forecast the rate would hold steady.
The department also said that employers added 92,000 jobs in October, down from a revised 148,000 in September, and short of Wall Street forecasts for a gain of 125,000,
But the September reading was revised up from the originally reported 51,000, and the increase, together with revisions to earlier months’ readings, left the number of jobs added this year at 1.5 million, which is above expectations, blunting the effect of the modest October gain.
Today’s report also showed the average hourly wage rose 6 cents to US$16.91 last moth, a shade above what economists had forecast.
On Wall Street, stocks opened higher on the report, but Treasury bond prices tumbled as investors in the inflation-sensitive bond worried about a strong job market leading to wage inflation.