Today's October employment situation report goes a long way in discarding recent recession chatter. October nonfarm payrolls were reported at 128,000 versus consensus expectations of 90,000. The previously reported September payroll number was revised higher to 180,000 nonfarm payrolls from 136,000. October's manufacturing employment declined 36,000; however, motor vehicles and parts fell 42,000, mostly reflecting the General Motors (GM) automobile labor strike.
The participation rate continues to trend higher and was reported at 63.3%. Over the last six months, 1,894,000 individuals entered the labor force. The strength of the economy, and hence the labor market,