Americans' paychecks are rising at their fastest rate in 9 years

A man works on a 2012 Jeep Wrangler at the Chrysler Toledo Assembly complex in Toledo Ohio

Manufacturing jobs had been expected to grow by just 13,000 in October, which typically is a weak month in that category. Meanwhile, the U.S. trade war with China poses a risk to further gains and companies may be slowing capital investment.

Sluggish worker pay gains despite the healthy jobs market had baffled economists, and the increase now is well above the 2.3 percent pace of consumer inflation. These are incredible numbers.

"This is the best labor environment in over a decade", said Joseph Brusuelas, chief economist at RSM US, an worldwide consulting firm.

The prospects for Republicans contrast with numbers such as broad-based hiring in October, including 30,000 in construction, 32,000 in manufacturing and 179,000 in services. At the same time, an influx of new job-seekers increased the proportion of Americans with jobs to its highest level since 2009. PNC Bank predicts wage growth to average 3.3 percent next year, bringing it on par with 2007.

Housing remains a weak spot in the economy, with sales of existing homes having fallen for six straight months as mortgage rates have risen to almost 5 per cent. The Standard & Poor's 500 index.SPX dropped 6.9 percent in October, the biggest decline in seven years.

Economists also noted that the pay increase remains well above the inflation rate. It's the first time since 2009 that wages have increased more than 3 per cent.

"The moderate improvement in wage growth keeps the Fed on track to hike again in December, and enables them to transition to a slower pace of rate increases next year", economist Mickey Levy of Berenberg Capital Markets said before the report was released.

Americans boosted their spending by the most in almost four years in the July-September quarter.

A broader measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they can not find full-time employment, fell to 7.4 per cent last month from 7.5 per cent in September.

Many employers have long complained they can't find enough workers to fill jobs.

Trump and Republican candidates painted the jobs report as further proof of an economic boom, but many independent economists warn that growth has probably peaked and that it is likely there will be a slowdown, especially if trade tensions continue to escalate.

Speaking Thursday at The Washington Post, White House economic adviser Larry Kudlow said he stands against that kind of policy at a national level. And in January, the minimum wage will increase in 18 states.

"It doesn't get any better than this", said Sun Wong Sohn, chief economist at SS Economics. "A awful idea", he said, claiming that pay restrictions hurts small businesses.

Among economists, there was wider agreement that the jobs report pointed to strength in the United States economy, despite recent worries that weakness may be emerging in some sectors such as housing and trade. About 313,000 people did not clock in at work in September because of the rough weather, according to the Bureau of Labor Statistics.

"You can't work on a jobs site if it's underwater", said Robert Frick, corporate economist at the Navy Federal Credit Union in Virginia.

"I don't think it's something the Fed should worry about", she said.

The stimulus "is driving strong growth, but we have a almost trillion dollar deficit and at some point we have to pay for that", said Stevenson, who is now an associate professor at the University of MI. Restaurants and hotels gained 33,000, majority lower-paying.

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