The U.S. jobs report beat estimates
The U.S. jobs report beat estimates thanks to robust wage gains through Q3, with big upward revisions that pre-dated the hurricanes, alongside a jobless rate drop to a cycle-low 4.22% with a 906k civilian job surge and a 575k labor force pop that lifted the participation rate to a 3-year high of 63.1%. The headline payroll figure marked a downside surprise, with an outsized hurricane hit to service sector employment that left a 33k September payroll drop after 38k in prior downward revisions, alongside a 9k goods employment rise that tracked estimates. A 0.5% average hourly earnings surge left a pop in the y/y gain back to the 2.9% cycle-high from last December, while hours-worked slipped 0.1% to only slightly undershoot assumptions. Goods sector hours-worked rose 0.1%.