U.S. employment snapped back with a vengeance in October, wage growth accelerated and the jobless rate fell to 5 per cent, boosting the odds that Federal Reserve policy makers will raise borrowing costs next month.
The 271,000 gain in payrolls was the biggest this year and exceeded all estimates in a Bloomberg survey of economists, a Labor Department report showed Friday. The median forecast called for a 185,000 advance. Average hourly earnings climbed from a year earlier by the most since July 2009.
Treasuries tumbled, the dollar strengthened and U.S. futures fell as the report allayed concerns of a hiring slowdown after weaker payrolls advances in the prior two months. Such improvement will probably means a green light for Fed officials, who last month held out the possibility of a December rate increase.