US NFP: Employment growth in October likely to be 300,000 – Danske Bank

In the US, the labour market report for October is due out and analysts at Danske Bank estimate employment growth in October was 300,000, as other indicators have shown the labour market has recovered following the hurricanes.

Key Quotes

“Note the very strong wage growth of 0.5% m/m in September was due partly to compositional effects, as the 'leisure and hospitality' sector (typically low wage growth jobs) was the sector most severely hit by the hurricanes. This could potentially have added up to 0.1pp to wage growth and we expect this effect was reversed in October. Hence, we expect a correction, now people have returned to their jobs, so we think wages rose 0.1% m/m in October.”