America just received maybe its best news of the year about the prospects for more jobs.
The U.S. economy added more jobs in October than any other month so far in 2015, according to the Bureau of Labor Statistics, which measures how many people in the U.S. are employed.
The unemployment rate now sits at a flat 5% after total employment increased by 271,000 last month, a number that bested any and all expectations. The BLS announced the results on Friday to cheers from just about everyone who was watching.
That was awesome.— Joseph Weisenthal (@TheStalwart) November 6, 2015
The unemployment rate now sits at its lowest level since 2008, as does the number of people working part-time jobs.
As if that good news wasn't enough, the amount of money people are making also ticked up. Wage growth had been brutally stagnant thus far in the recovery, causing concern that lower and middle class workers were still struggling.
The strong jobs report indicates that global economic struggles, particularly in China and smaller emerging economies, have not had as much of an effect on the U.S. economy as some had feared. A slowdown in other countries could still hit American shores, but the U.S. economy is, for now, looking relatively healthy.
2.5% year-on-year pay gain is the strongest since 2009. PAY US THE MONEYZ.— Neil Irwin (@Neil_Irwin) November 6, 2015
The positive news has major ramifications for the economists and bankers that operate the country's finances.
The Federal Reserve, the central bank of the U.S., has major influence on the country's economy through its benchmark federal funds rate, an interest rate set by the Fed that affects the rest of the country's rates on just about every other loan. That rate has been just about zero since 2008 in an attempt to encourage economic activity following the financial crisis.
Since then, bankers have been waiting for the Fed to raise that rate higher. The Fed, in turn, has been waiting for economic conditions to improve -- particularly unemployment. With the U.S. economy now looking its healthiest since Barack Obama was elected president, bankers and economists are expecting the Fed to raise its benchmark rate later this year.
There had been some indication that move could be put off til 2016.
Barclays pulls forward its call for a Fed hike from March to December.— Nick Timiraos (@NickTimiraos) November 6, 2015
Traders are now pricing in a 72% chance of a Fed hike in December, the highest level of conviction yet: Bloomberg data— Lisa Abramowicz (@lisaabramowicz1) November 6, 2015