Mohamed A. El-Erian , Columnist

Mixed Jobs Report Won’t Be a Tiebreaker for the Fed

Although it showed faster wage growth and a rising labor participation rate, the data won't tip the scales on a rate decision.

October 7, 2016 at 2:31 PM UTC

By Mohamed A. El-Erian

Mohamed A. El-Erian is a Bloomberg Opinion columnist. A former chief executive officer of Pimco, he is president of Queens’ College, Cambridge; chief economic adviser at Allianz SE; and chair of Gramercy Fund Management. He is author of “The Only Game in Town.”

Watching and waiting.
Photographer: Andrew Harrer/Bloomberg

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There had been hope the U.S. jobs report for September released Friday would show faster wage growth and a rising labor participation rate. It had both, though the data was otherwise mixed.

After the disappointing drop for August, wage growth picked up to an annualized rate of 2.6 percent in September. Along with an increase in the number of previously discouraged workers re-entering the labor force, this uptick provides a stronger basis for higher and more inclusive growth.