The Oct. job number came in at 271K, well above analysts expectations of 181K.
We will have to dig into the details to see where the growth came from, but my initial thought would be a surge in seasonal workers for the holidays.
Remember we saw this huge jump in Feb. followed by a very weak March.
Hourly earnings rose and the unemployment rate fell to 5% even from 5.1%, with non-participation remaining at 64.
The initial reaction in the bond market suggests Dec. rate rise of 0.25%, but let’s see where the day settles.
I’ll have more analysis on this tomorrow.