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Economy Outpaces Expectations with Big Revisions in New Job Report

A steel worker returns to work at U.S. Steel Granite City Works in Granite City, Ill. (Lawrence Bryant/Reuters)

The economy added 53,000 jobs above expectations in October, according to a new jobs report released Friday.

Unemployment grew slightly and GDP growth remained below expectations. Major job revisions from September and August indicated the economy is still strong despite recession concerns, with a monthly job-gains average of 176,000 over the last three months.

Non-farm payrolls rose by 128,000, outpacing the 75,000 estimate, with food services, business, and health care experiencing the largest gains. The total labor force expanded by 325,000. However, manufacturing fell by 36,000 jobs, in part due to a now-settled GM strike that subtracted thousands of additional jobs from employment gains.

A report from the  American Farm Bureau Federation showed that nearly 40 percent of agriculture’s $88 billion income this year will come from federal aid during the midst of an ongoing trade war with China.

Unemployment slightly ticked up to 3.6 percent, in line with estimates, while the unemployment rate for African Americans reached a new record low at 5.4 percent.

President Trump tweeted in response to the news.

Earlier this week, the Federal Reserve lowered its benchmark interest rate a quarter point — the third such move this year — but Chairman Jerome Powell clearly indicated that this likely will be the last cut for some time unless conditions change significantly. Trump has repeatedly criticized the Federal Reserve for its monetary policy.

“The Federal Reserve is derelict in its duties if it doesn’t lower the Rate and even, ideally, stimulate,” Trump tweeted on October 24. “Take a look around the World at our competitors. Germany and others are actually GETTING PAID to borrow money. Fed was way too fast to raise, and way too slow to cut!”

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