US economy creates more jobs, unemployment falls to 5.8%

American labour market continued to improve in October, as both non-farm payrolls rose and unemployment rate dropped further. The former showed a slower pace of advance last month; however, US companies still added as much as 214,000 jobs after a 256,000 increase in September. In addition, the jobless rate in the world's largest economy slipped from 5.9% to 5.8%, the lowest since July 2008. It is worth pointing out that American job market is recovering much faster than initially estimated, as the Federal Reserve projected the unemployment to reach around 5.9%-6% in the last quarter of this year. In December of the previous year, the Fed projected this indicator in the range between 6.3% and 6.6%, meaning that the current recovery is taking place much faster than forecasted. However, some economists partly explain a decrease of the jobless rate by people who leave the labour force. At the same time, employment level in the US stabilized in October at 62.8% and did not show a yearly decrease for the first time since 2008.

Meanwhile, the Federal Reserve chairwoman Janet Yellen gave a speech in Paris on Friday, where she underlined a positive effect from asset purchases of major central banks. Concerning Eurozone, she said that all central banks including the ECB should use extraordinary measures to support economic growth and reach the targeted inflation level. Moreover, more emphasis should be placed on structural reforms.