US: Payrolls rebound some, wages return to subdued trend and unemployment falls further - Nomura

Analysts at Nomura explain that October’s employment report of US was mixed as Job growth came in below expectations but unemployment fell further.

Key Quotes

“Nonfarm payroll employment increased 261k in October and averaged 140k over the past two months. Average hourly earnings (AHE) declined 0.04% in October, counteracting the hurricane-related increase of 0.5% in September. Wage growth is now closer to trend and is consistent with other measures of compensation growth.”

“The unemployment rate declined by 0.1pp to 4.1%, driven by a sharp and peculiar increase in the flow of workers from employed to nonparticipation. This large flow also lowered the labor force participation rate (LFPR) by 0.4pp to 62.7%.”