The unemployment rate fell from 5.1% in September to 5.0%, in line with expectations.
Helal Miah, investment research analyst at The Share Centre, said: “These numbers are now likely to heavily influence the Federal Reserve at their December meeting when they decide whether to raise interest rates for the first time since the financial crisis. As a result, the US dollar has made material gains against other major currencies, up 1% against both the Euro and sterling. ”
Stock market reaction to the announcement in the United Kingdom was mixed. “The market welcomes stronger numbers as a sign of the health of the world’s largest economy, at the same time it is having to take account of the fact the interest rate is more likely to rise soon,” Miah said.
Russ Mould, investment director at AJ Bell said: “A bumper non-farm payrolls figure of 271,000 demolishes the consensus estimate and paints an upbeat picture of the US economy, especially as wage growth crept higher to 2.5%. Both indicators will give the US Federal Reserve food for thought as it approaches its next policy meeting on 15-16 December, especially if any interest rate decision is truly data dependent”.
Mould also said that the immediate surge in the dollar against the euro and sterling suggests the market thinks a hike could be back on the table for next month.
