US Employment: Back to the 1960s – RBS

Analysts at RBS note that the US non-farm payrolls posted a lower than expected 134k rise in September but this was distorted by Hurricane Florence.

Key Quotes

“July and August data were upgraded sharply, pointing to a continued healthy employment trend. Notably, the unemployment rate dipped 0.2% to 3.7%, a 49yr low! Yet average earnings slipped to 2.8% y-o-y, from 2.9% y-o-y. Still, tighter labour market conditions look set to keep the Fed on course for another modest rate hike in December, if not beyond.”