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.
Find up to date information on the FTSE 100 and spread betting strategies at City Index.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.