BLS October Jobs Report Exceeds Forecasts; Unemployment Drops to 4.1%
What happened
The Bureau of Labor Statistics reported that the US economy added 165,000 jobs in October, surpassing expectations set by FactSet. The unemployment rate fell to 4.1% from 4.2% according to the report. The figures also showed that job gains in August and September were revised upward.
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Why it matters
Principal Asset Management stated that the strong jobs report serves as a rebuttal to fears that the economy is heading into a meaningful slowdown. The Bureau of Labor Statistics figures are a key input used by the Federal Open Market Committee when determining future monetary policy.
FactSet and the Bureau of Labor Statistics monitor and comment on annual inflation rates.
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Who's involved
- Bureau of Labor StatisticsUS government agency releasing official employment statistics.
- FactSetAmerican financial data company providing market expectation benchmarks.
- FEDBusiness that uses economic inputs for formulating monetary policy decisions.
- Federal Open Market CommitteeCommittee of the United States Federal Reserve that uses economic inputs.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Goldman SachsSpeculative
Goldman Sachs could see its investment strategy and forecasts influenced by the positive labor market data.
- MicrosoftSpeculative
Microsoft may see increased consumer and corporate demand for its products.
- IntelSpeculative
Intel might benefit from a robust economy supporting industrial and manufacturing demand for its components.
- AmazonSpeculative
Amazon may see higher consumer spending benefiting its e-commerce sales.
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The entities involved
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Bureau of Labor Statistics
US government agency
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FactSet
American financial data company