The US economy added 248,000 jobs in September while previous months job growth was revised higher by 69,000 jobs. Over the past 3 month, US payroll growth has averaged 223,000 jobs. The US unemployment rate fell to 5.9 per cent, the lowest reading in six years.
While inflation remains muted and considerable slack remains in other measures of employment, today’s overwhelmingly positive jobs report should add further fuel to the case for the US Federal Reserve to move interest rates higher in 2015. Moreover, if job growth continues at the current pace, long-term interest rates in both the US and Canada may begin to rise in anticipation of tighter monetary policy.