Wages return to trend growth as payrolls rebound - Nomura

Analysts at Nomura explained that, overall, the October report is likely to reaffirm continued labour market strength, albeit with wage growth that remains lacklustre by historical standards. 

Key Quotes:

"We expect nonfarm payroll employment to increase by 350k in October, fully reversing September’s weather-related decline and keeping the underlying pace of job growth close to 160k. After increasing strongly in September with strong upward revisions, we forecast growth in average hourly earnings (AHE) to rise only modestly by 0.1% (0.14%) m-o-m, bringing the y-o-y rate down slightly to 2.7% from 2.9%. While there is a risk that the unemployment rate will move up marginally to a rounded 4.3%, we expect continued job growth to keep the unemployment rate unchanged at 4.2% on a rounded basis."