The US gained 156K jobs and wages are up 2.6% y/y in September. Is it good enough? The team at Bank of America Merrill Lynch thinks it is and explains: Here is their view, courtesy of eFXnews: Headline numbers slightly softer”¦ The September employment report revealed job growth of 156,000 with August revised up to 167,000 from 151,000 and July revised down to 252,000 from 275,000 initially. The unemployment rate ticked up to 5.0% from 4.9% as the participation rate increased to 62.9% from 62.8%. The broader U6 measure of unemployment remained unchanged at 9.7% while average hourly earnings added 0.2% mom or 2.6% yoy. Bottom line: the September jobs report should leave the Fed on track to hike in December, but it was notrobust enough to push for a November hike. ..but trend still solid Although the September and August jobs figures were weaker, the 3-month average still stands at a healthy 192,000 andthe 6-month average at 169,000. In September, the gain came from the private sector, with 167,000 in private payroll growth and government payrolls contracting by 11,000. The composition of industry employment continues to point to challenges in the goods sector while services employment leads growth. Services jobs expanded by 157,000 while goods jobs grew by only 10,000. Within services, business services gained 67,000 followed by a 29,000 gain in education and health services. On the goods side, construction jobs expanded by 23,000 while manufacturing jobs contracted by 13,000. Rejoining the labor force The unemployment rate ticked up to 5.0% (4.965% unrounded) from 4.9% (4.922% unrounded), owing to an increase in the participation rate to 62.9% from 62.8%. The increase in the labor force participation rate suggests that the labor market may not have reached full capacity and there is still outstanding slack, implying only gradual wage increases. Indeed, wages increased 0.2% mom,boosting the year-over-year rate to 2.6% from 2.4%. This is at the upper-end of the recent range for wages. Fed: hike in December Putting the pieces of the puzzle together, nonfarm payrolls were slightly below expectations but still pointed to solid job growth. Moreover, we think the risk is for September jobs to be revised higher as tends to be the historical trend. The bigger story, however, is the increase in the labor force participation rate which implies there is capacity for further expansion in the labor market. This leaves the Fed comfortable hiking in December, but to engage on a very shallow cycle. For lots more FX trades from major banks, sign up to eFXplus By signing up to eFXplus via the link above, you are directly supporting Forex Crunch. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Daily Look share Read Next EUR/USD Forecast October 10-14 Yohay Elam 6 years The US gained 156K jobs and wages are up 2.6% y/y in September. Is it good enough? The team at Bank of America Merrill Lynch thinks it is and explains: Here is their view, courtesy of eFXnews: Headline numbers slightly softer"¦ The September employment report revealed job growth of 156,000 with August revised up to 167,000 from 151,000 and July revised down to 252,000 from 275,000 initially. The unemployment rate ticked up to 5.0% from 4.9% as the participation rate increased to 62.9% from 62.8%. The broader U6 measure of unemployment remained unchanged at 9.7% while average hourly earnings added… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.