- The Change in Manufacturing Payrolls for October was 12K versus estimates of -9K and -28K in September.
- The Unemployment Rate for October fell to 5.0% versus estimates of 5.1% and 5.1% in September.
- Average Hourly Earnings for October rose .5% versus estimates of a .2% increase and a .1% gain in September.
BOTTOM LINE: The US economy added 56,000 jobs in October as hiring lagged even in areas not hurt by Hurricanes Katrina and Rita, Bloomberg reported. The economy has created 118,000 jobs over the last 4 months, mainly due to the effects of the hurricanes. The manufacturing workweek rose to 41 hours from 40.6 hours. The .5% gain in average hourly earnings for October was the largest monthly increase since February 2003. I expect job creation to improve through year-end, but not to levels seen before the hurricanes struck. This should help keep unit labor costs, the largest component of inflation, in check.
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