Biggest ever. Data was accessed on 76 million households and a 7 million small businesses. Hong kong prodemocracy demonstrators under attack at two protest sites. Hundreds of men tussled with protesters and removed barricades. That is a live shot of what is going on. Leaders say they will cancel planned talks with the they. T unless this has not been seen in hong kong. President obama puts the spotlight on jobs. He is set to meet with steelworkers following his speech in chicago, where he called attention to the economic recovery in the u. S. , especially in manufacturing. Manufacturing has added more than 700,000 new jobs. It is growing twice as fast as the rest of the economy. They are looking at bringing jobs back from china. What will the report tell us about the economy . Fromng us is our reporter bloomberg news. Peter coy. Ring in he is the Bloomberg Economics at it economics editor. You say a fall in the jobless rate could be bad news. It could be. A it happens because there is lot of tightness in the labor market, we do not get a big increase in the labor force and unemployments rainfall, we cannot handle the increase in and we will see upward pressure and wages. The ideal would be strong job growth. People are encouraged to find work. To tell the truth, the Unemployment Rate is high. The Unemployment Rate does not help the people unemployed for reasons out of their control. The president tried to assure americans the economy is doing better. Is he getting that message across. The white house has not been good at staying on message. We are a month out, this number will be important if it indicate something positive. , 80big problem for voters 83 say the economy is the problem. They feelt look like it in their paycheck. The big apples wages. That is what the voters feel. Wages is a huge point. You say there is a huge correlation to a rise in wages and the spending in this economy. Wages have gone up 2 . Under two. S a little if we get strong wage growth, it means two different things. We will start to see Interest Rates go up. You mentioned how the americans see the economy. Is that going to help republicans more . Not play a part for republicans. Many of them are in the house. In the senate races, if the democrats can make an argument that things are improving, it might help them hold of some of these. The challenge for the democrats is that the people who are feeling the worst about the economy and the people who have suffered the most in that their wages have not increased and gotten back to prerecession levels are indeed, democratic constituencies. They are minorities. The People Democrats need to come out. They are the people suffering the most in these economic times. Thank you for joining us. We appreciate it. While it may not feel like the economy is improving that much, stocks have told a different, brighter story. Except for these last few sessions. Michaud joins us. Before we talk about jobs, you disagree with peter in that you would like to see higher Interest Rates. You thing that could be a good thing. The Banking Industry i look at it from the lens of what is happening at the Banking Industry. A lot of good things happen in the Banking Industry. If they could get more spread income because the economy is Getting Better and Interest Rates are rising and going back to a more typical environment, that would be good for the Banking Industry. We see higher rates and we see at because the economy is growing and because the labor markets are tightening, that is a good thing. Perhaps the economy is catching up on the things the stock market has been telling us. Lowest in our lifetime. It is unusual. We want to get back to a point where savers can to save more and a more traditional level of rates. Are banks continuing to lend . Are they loosening up their lending at all . There is a lot of good news coming in the Third Quarter for banks. We will have the 19th consecutive quarter of improving credit quality, which i think is exceptional. You will have the mid and small banks there is a difference desk or that is all good news, but we have not have not have had Interest Rate earnings this period. It will begin for the economy. What about trading . That is a different story. We are looking for trading to be down for the biggest banks. Down about 5 , not 15 , where it has been. Better, but not robust. Still dragging along. It is. It is giving the other dynamics of the earnings a chance to kick in. I hear a lot from ceos and bankers that the credit markers are loosening and requirements are loosening and they are seeing more lending. Just yesterday, ben bernanke quote fromo read a what he said yesterday. Refinance andd to i was unsuccessful in doing so. Let me give you the bigger narrative. Was unhappy after the Global Financial crisis. I do it like a pendulum. The rules and regulations have gone so far that i believe it is beyond what is practical. When the formal fed chairman gets caught up in the rules being imposed in the industry, it suggests it is a another signal that we have to take a broader look at what is happening. That is my opinion. To work every day to make loans. That is the most profitable thing they can do. They dont not want to make loans. I think they would like to make him a loan, but there is a reason why it did not happen and we have to study why that happened. There are a lot of people who will speak up for him. You will be with us to talk about the jobs market. Moving and shaking, once the russias richest person, but he ran afoul of Vladimir Putin and spent a decade in prison. He says that gluten that putin is driving russia into a crisis. I have finished with business. I consider that i have achieved what i wanted to achieve, the plans that i had. Now, i can move on to the vick activity. I consider it civic activity, as i have before. Russia call it political activity. I do not object to that. If you think i am dealing in politics, you may do so. I spoke with mitt romney last week at a panel and he underscored the threat that russia poses. He says the greatest threat to america is a nuclear iran. The greatest adversary is a russia. Putin is attempting to rebuild the russian empire. We have more on my conversation with mitt romney in this hour. You can watch all of the interviews tonight. Coming up, we are about 15 minutes away from the september payment results. Have a cast of all stars to react to the job numbers. We will be speaking with Mohamed Elerian and a former head of the White House Council of economic advisers. As we await the september payroll report, there are sectors where hiring is hot. Ernst young announced it is adding staff big time. It will recruit 6500 experienced employees, up from two years ago. Is it seeing the demand for services and how does it find all of these qualified people. We hear about the skills gap in america. With me is the american managing partner at ernst young. Out ith us, tom mech tom michaud. Steve, lets start with you. I am amazed. A 50 increase in hiring in the last four years. You hear ceos speak about how different how difficult it is to operate in this environment and thousands of layoffs are happening. We are seeing a slow and steady improvement. For our business, we bowl we will be in our fourth year of growth. , taxour of our businesses and transactions are growing. We are helping these companies through their challenges and seeking opportunities. Are they hiring you because they are looking at outsourcing some of their services, they are turning some fulltime workers and two parttime . Is that part of the trend . I think some of that is happening. They are trying to be as efficient as possible. We can provide an array of services to help them do that. Sometimes they will lean more on the outside as efficiencies build. A number of employees plateaued in the firm was growing. Continuing to add talent and take market share. That is the case in my company. You have had the sales and trading businesses being difficult. Equity volumes are five years off their peak. They are getting laid off. They are not getting hired. Investment banking has been improving. Capital markets have rebounded. They have gotten valuations issuers issue equity again. You are seeing growth across the board. Where are they being hired . Up. Ur numbers are we will hire more than 15,000 people this year in the u. S. The experience market, we are i. T. Skills, people who have experience in we see the mn day market picking up. The i. T. Space ranges across clouds, digital, big data. These skills are not easy to find. Our wages are going up. These are salaried, wellpaid, fulltime jobs. We are doing Everything Possible to find talent. Find foryees to us. Are your wages going up . We see it at the entry level. That is really good for the economy. We see it more in the entry level than at the senior level. Why is that . The street needs of some of those skill sets. It will change quickly. These are a lot of attractive job openings. We are seeing salaries starting to increase in the entrylevel position. Youhat would you say what see now, versus what you saw a year ago. We are only where seeing 2 wage growth. There have been many years of no change. There have been many years of no change. It over a longer period of time, the growth rate would be slower. Thank you for your take on the jobs market. We are less than 10 minutes away from the september payrolls report. We are going to talk with the economists and alan krueger will be joining us when the numbers break. Stay in the loop. You are watching luke paying. Good morning. At our topook headlines. An american working for nbc news has an diagnosed with ebola. He will be flown to the u. S. For treatment. The crew has no symptoms or warning signs and are being monitored. The Treasury Department cracks down on tax aversions and appears to be working. A 2. 7 billion merger agreement was canceled. They are in talks of selling themselves to activists. Ubs could be facing a fine. That is according to a newspaper work. By the most since may. Equity futures right now are slightly higher. Healthy year. Be a sign traders are expecting upside in this, especially given the revision after last month that really undershot all economist estimates. Moments away from the jobs report. No discussion of jobs would be complete without talking about income and quality income and inequality. 10 has seenhe top gain while the bottom 90 , the yellow bar saw an erosion of in the last several decades. This shows you what has happened during the economic expansions in the United States since world war two. You can see the top 10 is seen bigger and bigger gains. Alan krueger joins us to discuss this. Pounding theeen drum on this. It is probably the reason why americans do not buy into what the president said. This is a problem starting in the late 1970s, we saw the Income Distribution falling apart. There are steps we can take which would help to ameliorate the problem. Like what . Waving raising the minimum wage is an obvious step. We just saw that. Most workers are not federal contractors. That is one step. I am more aid that any quality will create an inequality trap. The gap has been growing. Mean more any quality. We need to provide more opportunities from lesser advantaged families. The Affordable Care act is happening. Someone is in america and before they will stay. That is the fear i have and that will be the pattern. Back to the jobs report and this data. The fed is looking out wages, the jobs market, the asset markets. What is on Janet Yellens dashboard right now. She is looking at the growth,ment rate, wage i would highlight a few other issues. What is happening to the longterm unemployed. Leaving the labor force . Are people out of the labor force coming back in . When they are out, they tend not to come back in, even though the economy picks up. At whatend she looks happens to the labor share of national income. Also, on wages, i would focus on production. Hang on with me. We are moments away from the september jobs report. Mike mckee will join in. Peter cook at the Labor Department. 248,000 jobs added last month. The Unemployment Rate drops down to 5. 9 . Rate sinkspation down as well as well. Not quite as good as it first appears. Number, of the headline better than our survey suggested. Jobs added in the month of september. To 243,000. Up threemonth average, 224,000. The prior 12 months, 213,000 jobs per month. The household survey, the lowest level we have seen for the oil rates since july of 2008. The total number of unemployed fell by. The labor force felt by 97,000. That left the Participation Rate ticking down just slightly. It drops to 11. 8 . The lowest level we have seen since september. Little changed from the prior month. Discouragedof workers, 690,000. Who was hiring in the month . Retail gaining 35,000. A lot of that having to do with the returns of the Market Basket workers. We had construction up 16,000. Manufacturing gaining 4000. Mining gaining 9000. Workhours was the average week. Level wehe highest have seen since may of 2008. There was an effort to get more people on the job. This may be the area that disappoints the most. No change month over month. Perhaps some questions about wages Going Forward. Whatreport better than they had expected. It definitely better. Thank you. Hang on. There was a lot of buying on the rumor and selling on the news. You saw equity futures ticked down a little bit. You have more how the futures are trading. They have gone. By 7 10 oftures up 1 before the jobs for work a lot. Seeing selling in the treasury, so the 10 year yield has moved up as well. The dollar was stronger before the working out. It continues to extend its strength against the yen. Versus oneakening dollar. Certainly reversing some of the moves from the previous day. This is going to focus on the fed and where they go with Interest Rate. Wages, they are disappointing. This is a strange report. Janet yellen has to make the ise that the labor market not good enough to raise Interest Rates. The other things on her dashboard are not good in terms of labor force. Participation rate goes down. Hourly earnings for the category that alan was talking about, production work falls. The numbers on her dashboard are not better then they were. How do you explain that in the context of do we want to wait to get the labor market stronger . It will be a dilemma Going Forward and it will be hard for wall street to square what she is saying and other members of the dovish camp are saying with what they are seeing in the economy. If we are creating this many jobs in the Unemployment Rate is raises, why arent rising . What is going on . This is a solid report. Mike is right. The one statistic that did not fit in is what happened to wage growth. I think we will see that edging. Own businesses have been reluctant to raise wages. They feel more pressure to do it. There is no better time to raise the minimum wage. Government increased the minimum wage, so there is congress could do today that would help this. With job growth over 200,000, there is that much risk to unemployment. Jobless rate has been steadily falling. Sixyear lows. We are creating 200,000 jobs are more a month. Something a seeing little bit different . Ims surprised. Workers wages, up 2. 5 . Now it is 2. 3 . The employment cost index is our best indicator of wage pressures. Not only wages, but is what it but what is happening to fringe benefits. We will get another reading on that. That will be informative. Where in an environment labor does not have bargaining power. The other thing i would add, participation is moving the way i predicted three years ago. I thought we would see continued decline in the Labor Force Participation because the population is getting older and many of the unemployed exit the labor force and theres not a tendency for those to come back, even when things pick up. Talk to me about how this is going to be used today. Used by the republicans to speak about their own tactics, their own strategy on creating jobs. Are they going to how are they going to use a report like this, or can they . Republicanshe fact are opposed to raising the minimum wage, they will fact that there are new wage gains and the fact that Participation Rates drop down. People are leaving the labor force. This is so close to the election in the last jobs report. It is hard to argue that it will make that much difference on election day, but you can have them at that sees on the top the economy has started to turn the corner. Republicanse telling a similar story that the economy is still hurting, especially for people who do not have a job and are not seeing their wages go up. Peter was talking about the fact that people were retiring. The longterm unemployed you write about were probably people who made more money than new entrance to the labor force. They will be better paid people. Is that why we are not seeing average earnings go up . I think that is contributing. We are moving more and more towards people at the peak of their earnings. It is going to be hard for republicans to say unemployment is coming down when we have been creating over 200,000 jobs a month this year. It will sound like they are rooting against the economy. Unemployment comes down for two reasons. Some of the unemployed are finding jobs. More people are retiring. That is a positive thing. Have this natural response that the longterm unemployed are getting discouraged. They dont see congress doing much to help them. They are not doing much to encourage employers to hire them. That is a natural progression of the economy at this point. The picture has changed in the markets as we futures report holding on to gains. The dollar continuing to strengthen. Was looking through some analyst notes. Should do well following the jobs report,