U.S. unemployment rate rose to 7.3 percent in October, up from 7.2% in September, but the number of employees rose by 204,000 from August to October, well above analysts’ estimates, a sign that employers are optimistic about the economic outlook.
Median estimates of economists contacted by Bloomberg announced an increase of 120,000 in the number of employees in the U.S. In September, as the figures rose by 163,000. The evolution reveals a lower impact than expected of the 16-day federal impasse in October, in the context of the political stalemate in Washington on the budget and debt ceiling. The data could also influence U.S. Federal Reserve’s decision to reduce the quantitative easing program.
“The government shutdown really didn’t have a material impact on employment. The labor market is actually quite healthy, regardless of what people may think. The economy is doing better,” said Brian Jones, senior U.S. economist at Societe Generale in New York.
The number of employees increased in the U.S. in all key sectors of the economy, from manufacturing to retail and hotel services. The increase in the number of employees in the U.S. economy has surpassed even the most optimistic predictions. Higher unemployment seems motivated primarily by the fact that more Americans dropped out of the labor market.
The participation rate in the labor force decreased to 62.8 percent, the lowest level in over 35 years, compared to 63.2 percent in September. Around 800,000 federal government employees were furloughed in the period October 1 to 16.
U.S. Department of Commerce announced Thursday that gross domestic product grew in the third quarter by 2.8 percent compared to the same period in 2012, after it rose by 2.5 percent in the second quarter.
The demand for workers will grow stronger in the near future, as retailers will hire seasonal employees to meet the high demand during the winter holidays. Amazon.com, the largest online retailer in the world, created over 70,000 full time jobs in the U.S. for the holidays. Several thousand of these posts will become permanent positions starting next year, the company announced.
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