Oct NFP: Headline and Revisions Stronger

Hiring in the U.S. increased more than forecast in October as employers looked past slowing global growth and political gridlock at home.

In the last jobs report before next week’s election, a net 171,000 workers were added to payrolls after a 148,000 gain in September that was more than first estimated, Labor Department figures showed today in Washington. The increase exceeded the most optimistic forecast in the Bloomberg survey in which the median called for an advance of 125,000. Unemployment rose to 7.9 percent as more people entered the labor force.

Stock-index futures rose as faster job growth helped explain gains in consumer sentiment, laying the groundwork for a pickup in purchases that’s helping sustain the expansion in the wake of a weakening global economy. Americans go to the polls on Nov. 6 to decide whether to give President Barack Obama another four years or change course with Republican challenger Mitt Romney.

“The labor market is taking baby steps forward,” Scott Anderson, chief economist at Bank of the West in San Francisco, said before the report. “The fact that consumers are spending again has been an important support. Consumers pull a lot of weight, so more spending can lead to job creation.”

The contract on the Standard & Poor’s 500 Index expiring in December rose 0.5 percent to 1,430 at 8:34 a.m. in New York. The yield on the benchmark 10-year Treasury note increased to 1.76 percent from 1.73 percent late yesterday.


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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell