October job growth strongest since May
WASHINGTON (MarketWatch) - Shaking off fears about weakness in housing and credit, the U.S. economy created 166,000 net jobs in October, the best job growth since May, the Labor Department reported Friday.The 4.7% unemployment rate, by the way, is at or near what most economists consider to be the "natural rate of unemployment".
The unemployment rate was steady at 4.7% as expected, the government said.
The natural rate of unemployment is that amount of unemployment you will have no matter what you do because of friction in the system at any given time.
You cannot get much below the natural rate of unemployment without risking significant inflation and loss of productivity from hiring underskilled workers just to fill open slots.
How will the Fed view all this?
The stronger-than-expected payroll report makes it less likely that the Federal Reserve will cut interest rates in December following cuts in September and October.Agreed. I think the Fed will sit back and watch.
Well, now the MSM and Democrats (but I repeat myself) can't run with their "worst economy in 50 years" line of baloney for the elections.
I bet they go with the "women and minorities hardest hit" spin.