WASHINGTON (AP) — Falling unemployment still isn’t doing much to raise worker pay.
The government says employers added 214,000 jobs last month, lowering the jobless rate to 5.8 percent. But the average hourly pay of workers rose only slightly, a glaring weak spot in an otherwise solid report.
In Tuesday’s elections, voters identified the economy as their top concern — suggesting that economic improvement hasn’t yet been felt by many Americans. And the sluggish pace of pay growth may be a factor.
Average hourly pay rose 3 cents in October to $24.57. That’s just 2 percent higher than the average wage of 12 months ago, and barely ahead of the 1.7 percent inflation rate.
Analyst Dan Greenhaus of the brokerage firm BTIG says the labor market “in many respects has already healed,” but that “employee bargaining power remains virtually nonexistent.”
Job gains in October were broad-based, although many lower-paying industries posted especially large increases. Retailers added 27,100 jobs. Restaurants, hotels and entertainment firms gained 52,000.
Analysts say the economic expansion remains strong enough to support the current pace of hiring. Over the past six months, the economy has grown at a 4.1 percent annual rate.
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144-a-14-(Hugh Johnson, chairman, Hugh Johnson Advisors, in AP interview)-“across the board”-Analyst Hugh Johnson says there were gains in key sectors of the economy. (7 Nov 2014)
< 143-a-14-(Hugh Johnson, chairman, Hugh Johnson Advisors, in AP interview)-“a positive report”-Analyst Hugh Johnson says the job gains were across the economy. (7 Nov 2014) < 142-a-16-(Hugh Johnson, chairman, Hugh Johnson Advisors, in AP interview)-“a pleasant surprise”-Analyst Hugh Johnson says today’s job report is a positive one. (7 Nov 2014) < APPHOTO NYBZ183: In this Oct. 28, 2014 photo, Shantel Howard, 29, of Miami, right, makes an appointment for a job interview with Calvin Klein employee Melina Mikhalices, left, after submitting her resume during a job fair at Dolphin Mall, in Miami. The Labor Department releases employment data for October on Friday, Nov. 7, 2014. (AP Photo/Lynne Sladky) (28 Oct 2014) < Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
