Friday, November 8, 2013

Current Events- 8th November 2013

US Businesses Boost Hiring Despite the Shutdown.
Employers added a surprisingly strong 204,000 jobs in October despite the 16-day government shutdown, the Labor Department said Friday. And they did a lot more hiring in August and September than previously thought. Moreover, activity at service companies and factories accelerated last month.

Unemployment rose to 7.3 percent from 7.2 percent in September. But that was probably because furloughed federal workers were temporarily counted as unemployed. Analysts say the economy might be able to sustain its improvement. With the job gains of recent months, combined with modest increases in pay, could encourage more spending in coming months, especially in auto sales because many Americans are buying cars after putting off big purchases since the recession struck nearly six years ago.
Job growth is a major factor for the Federal Reserve in deciding when to reduce its economic stimulus. The Fed has been buying bonds to keep long-term interest rates low and encourage borrowing and spending.
However, economists differed over how the robust jobs report might influence the Fed. Some said it probably isn't sufficient for the Fed to slow its $85-billion-a-month bond-buying program when it meets Dec. 17-18. "The one month of job growth is not enough to allow them to pull the trigger," said Patrick O'Keefe, director of economic research at CohnReznick.

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