The U.S. economy surged by 531,000 new jobs in October, substantially beating the estimated 450,000 jobs forecast, as the unemployment rate fell to 4.6%. The Bureau of Labor Statistics indicated that the hospitality and leisure sector -- battered by the pandemic -- showed strength in adding 164,000 new jobs, while the professional and business services, and manufacturing sectors added 100,000 and 60,000 new jobs respectively.
Analysts are pointing to the numbers as indicators that inflation and labor shortages would hamper job growth:
“This is the kind of recovery we can get when we are not sidelined by a surge in Covid cases,” said Nick Bunker, economic research director at job placement site Indeed. “If this is the sort of job growth we will see in the next several months, we are on a solid path.”
The stock market reacted favorably to the October jobs report, posting a gain of nearly 350 points in early trading.
With the House's imminent passage of infrastructure legislation (already passed by the Senate), that job-creating boost should bring higher wages and more job growth. Add to that the social infrastructure Build Back Better legislation, which needs to pass, and we could see a booming economy in 2022 and beyond, something Republicans will resist for partisan advantage.
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