US private employers added 230,000 jobs in October, a report by payrolls processor ADP revealed today (November 5th).
This beats analysts' forecasts of 220,000 jobs added for the month of October, Bloomberg reports. In September, the US economy generated 248,000 jobs, with the unemployment rate dropping to 5.9 per cent, its lowest level in six years.
"The job market is steadily picking up pace. Job growth is strong and broad-based across industries and company sizes. At this pace of job growth unemployment and underemployment is quickly declining," Mark Zandi, chief economist of Moody's Analytics, told Reuters.
"The job market will soon be tight enough to support a meaningful acceleration in wage growth," he added.
US stocks rose this morning after the release of the ADP job report and as the Republican Party took control of the Senate in the midterm elections. At 11:11 ET, the Dow Jones industrial average rose 0.38 per cent to 17,450.68, while the S&P 500 gained 0.39 per cent to 2,019.96 and the Nasdaq Composite added 0.16 per cent to 4,630.84.
A Labor Department report is due to be released later this week. According to Bloomberg, it may show the jobless rate probably held at a six-year low of 5.9 per cent.
The situation in the US is in stark contrast with Europe, where the European Commission has slashed its economic forecast for the eurozone, saying the area will only grow by 0.8 per cent this year, instead of the 1.2 per cent previously estimated. It has also has cut its growth forecast for 2015 to 1.1 per cent from 1.7 per cent. Over 18.3 million are still out of work across the eurozone.
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