October-November 2017 Economic Recap
The labor market kept humming along at a solid pace in October, with the BLS reporting that the economy added 261,000 jobs during the month. Of note, employment in leisure and hospitality bounced back after a hurricane-related decline of 111,000 in September, adding 106,000 jobs. In addition, unemployment fell to a seventeen-year low of 4.1% and “underemployment” plunged from 8.3% to 7.9%. However, labor force participation contracted from a multi-year high of 63.1% to 62.7%, and the prime-age employment-population ratio declined for the first time since May. Wage growth was essentially flat for the month, and on an annualized basis decreased from 2.9% to 2.4%.
Both the House and Senate released their tax proposals during the month. The plans were broadly similar, centered on a reduction of the corporate tax rate from 35% to 20% and an elimination of a broad range of individual deductions. However, there are some notable differences between the two, such as the timing of the corporate rate cut and the repeal of the property tax deduction, which could make the bills difficult to reconcile.
For a deeper consideration of the economic data released during October, please follow the links below: