US job growth soared with non-farm payrolls up 271,000 and unemployment rate is down 5.0 percent strengthening the possibility of the Federal Reserve interest rate hike in December.

Reuters has reported that the Labor Department announced Friday, non-farm increased 271,000 in October, the largest increase since December last year. Meanwhile, unemployment rate is at its lowest since April 2008.

New York Bank of America Merrill Lynch deputy US chief economist Michelle Meyer said, "The employment report had everything you could have asked for. It more than offsets the weakness in the prior two months and positions the Fed to hike rates in December."

The Labor Department's strong October employment report makes a Federal Reserve interest-rate increase in December much more likely.

The Wall Street Journal report shows Fed Chairwoman Janet Yellen recently said that interest rate increase is very possibly in central bank's last policy meeting this year on December 15-16 if there is continued economic growth, which means significant improvement in the labor market and bring inflation back to its 2 percent goal over the medium term.

Meanwhile, a Bloomberg Business article cited financial manager Bill Gross saying that there is a hundred percent chance that the Fed will go for the rate hikes after job growth soared last month. Gross is the manager of the Janus Global Unconstrained Bond Fund, which is valued at $1.4 billion. He said, "So what I would be doing is to pursue risk-off types of trades, meaning don't invest in stocks to a significant extent and don't invest in high-yield bonds."

A lot of economists already announced that if monthly job growth is above 150,000 in October and November, then there would be sufficient grounds for a Fed rate hike. The US central bank has been hinting a rate hike in their December meeting after their October policy meeting.