The U.S. economy added 261,000 jobs in October, according to the Bureau of Labor Statistics, and the unemployment rate fell 10 basis points to 4.1 percent. The job gains were a rebound from September, which saw the effects of Hurricane Harvey and Hurricane Irma. BLS also revised the September job gains upward to 18,000 (from a loss of 33,000).
At its meeting this week, the Federal Open Market Committee noted, “Hurricane-related disruptions and rebuilding will continue to affect economic activity, employment and inflation in the near term, but past experience suggests that the storms are unlikely to materially alter the course of the national economy over the medium term.”
By category, the biggest gains in October were in food and drinking establishments (89,000 jobs), professional and business services (50,000 jobs), manufacturing (24,000 jobs), and healthcare (22,000 jobs).
Although the FOMC held the target range for the federal funds rate steady, all signs continue to indicate an increase in December is likely.
