Payrolls Jump 204,000 as U.S. Economy Weathers Shutdown
By Victoria Stilwell - Nov 8, 2013
American employers added more workers to payrolls in October than forecast by economists, betting that the world’s largest economy would weather the impact of the federal government shutdown.
The addition of 204,000 workers followed a revised 163,000 gain in September that was larger than initially estimated, Labor Department figures showed today in Washington. The median forecast of 91 economists surveyed by Bloomberg called for an increase of 120,000. The jobless rate rose to 7.3 percent from an almost five-year low.
The figures indicate companies adhered to hiring plans with an outlook for stronger sales in the aftermath of the 16-day budget impasse and a debate over raising the nation’s debt ceiling. Treasuries fell on speculation the report will prompt the Federal Reserve to accelerate a withdrawal of stimulus.
“The government shutdown really didn’t have a material impact on employment,” said Brian Jones, senior U.S. economist at Societe Generale in New York, whose forecast for a payroll gain of 175,000 was the highest in the Bloomberg survey. “The labor market is actually quite healthy, regardless of what people may think. The economy is doing better.”
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http://www.bloomberg.com/news/2013-11-08/payrolls-jump-by-204-000-as-u-s-economy-weathered-shutdown.html
