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Brisk U.S. job data likely to push Fed raise rates in Dec.

Xinhua, November 6, 2015 Adjust font size:

The U.S. job market improved significantly in October, adding catalyst for the Federal Reserve to raise interest rates in December.

The unemployment rate fell to five percent in October from 5.1 percent in the previous month. Total nonfarm payroll employment increased by 271,000, higher than expectations of up to 240,000, the Labor Department reported on Friday.

Payroll increase above 200,000 is regarded as one of the key signs of a healthy job market.

The report came as the Fed is contemplating whether to raise the key interest rates in December. Job market and inflation are the major two elements that the Fed is considering to hike the rates.

Fed Chair Janet Yellen said Wednesday that the central bank may start raising short-term interest rates at its December policy meeting as the U.S. economy is "performing well."

Analysts said the bullish job market data in October provides fresh evidence that the economy continues to grow at a pace that's sufficient to generate further improvements in the labor market. Rates hike in December is highly likely given the current situations.

Several other top Fed officials, including Vice Chair Stanley Fischer and Federal Reserve Bank of New York President William Dudley, have also signaled that it will be appropriate to raise interest rate this year as the job market continues to improve.

Average hourly earnings increased by 9 cents to 25.2 U.S.dollars in October. Over the year, the figure has risen by 2.5 percent.

The number of long-term unemployed, or those jobless for 27 weeks or more, was barely changed at 2.1 million in October, accounting for 26.8 percent of the unemployed.

The labor force participation rate, or the share of the working-age population employed or looking for a job was unchanged at 62.4 percent.

The Fed has kept its benchmark short-term interest rates near zero since December 2008. In its September meeting, the Fed held off the first rates hike off their historic lows citing the global economic slowdown. Endi