The U.S. labor market rose again in October

According to the Labor Department’s employment report released Friday, the number of new jobs opened in the U.S. in October exceeded expectations, while the number of people hired grew at a steady pace and wages rose steadily despite the rising unemployment rate.

This data is of little comfort to the Federal Reserve, which is seeking to “cool down” the economy in an attempt to reduce inflation, which has reached its highest level in 40 years.

The Fed fears that high prices will take hold and that higher wages will trigger an inflationary spiral effect that will hurt families and businesses even more.

U.S. employers hired 261,000 new workers last month, far more than economists predicted, and the unemployment rate rose by two-tenths to 3.7 percent, the Labor Department reported. Average hourly earnings for private-sector workers rose another 12 cents, or 0.4 percent, to $32.58, according to the Labor Department.

Wages have increased 4.7% over the past 12 months as companies have had to compete to find and retain workers in a tight labor market.

The pace is slightly slower than in September, but many employees at U.S. companies are pushing for wage increases so they don’t lose money to high inflation.

The report shows notable job gains in health care, professional and technical services and manufacturing.

The Fed has raised benchmark interest rates six times this year to reduce demand, but so far it has had little effect on consumer spending or inflation.

Although usually monetary tightening leads to job cuts, economists say employers have been reluctant to lay off workers they’ve had trouble finding.

“The data continue to show a strong positive trend in the labor market, which has yet to show much adjustment in response to rapid monetary tightening,” said economist Rubila Farooqi of High Frequency Economics. – This data will force the Fed to keep raising rates.”