October jobs shock seals case for December Fed rate hike
Prior months were also revised higher: August moved to 186,000 — a 53,000 upward revision — and September to 60,000 following a 31,000 adjustment.
“Today’s jobs report is a strong rebuttal to fears that the economy is heading into a meaningful slowdown,” said Seema Shah, chief global strategist at Principal Asset Management.
“Payrolls growth surprised firmly to the upside, unemployment fell back to 4.1%, and job creation remains broad-based, pointing to an economy that is still absorbing labor comfortably rather than one beginning to buckle under tighter financial conditions.”
What the data means for December
CME FedWatch odds of a December hike jumped to roughly 77% following the BLS release.
Mike Fratantoni, chief economist and senior vice president of research and business development at the Mortgage Bankers Association (MBA) in Washington, DC, reacted directly to Friday’s data.
