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UNEMPLOYMENT RATE FALLS TO 5.8%

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November 07, 2014

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Job gains in October were less than expected, though the unemployment rate fell to its lowest since 2008.

Nonfarm payrolls grew by 214,000 in October, while the unemployment rate fell to 5.8%, according to the latest monthly employment report from the Bureau of Labor Statistics.

Last month's payroll gains were also revised up, to 256,000 from 248,000.

The drop in the unemployment rate takes this number to its lowest since 2008, and the "U-6" unemployment rate, which also includes those working part-time for economic reasons, fell to 11.5% from 11.8%. 

Friday's report showed that average weekly hours worked edged up, in-line with expectations, to 34.6 hours. 

Wage growth remained somewhat disappointing, as wages grew 0.1% month-on-month, missing expectations for growth of 0.2%. Year-over-year, wages grew 2%, below expectations for a 2.1% gain. 

The labor force participation rate, which is also closely watched by the market, rose slightly from last month, to 62.8% from 62.7%. 

Here is what Wall Street was looking for ahead of the report:

  • Nonfarm payrolls: +235,000
  • Unemployment rate: 5.9%
  • Average hourly earnings, month-over-month: +0.2%
  • Average hourly earnings, year-over-year: +2.1%
  • Average weekly hours worked: 34.6

More to come ...

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