U.S. Job Growth in October Falls Short of Forecasts, Unemployment Rate Steady at 4.1%
The U.S. economy experienced a marked slowdown in job creation in October, adding only 12,000 new positions, significantly lower than the anticipated 113,000 jobs predicted by economists at LSEG. The Labor Department’s report on Friday highlighted this shortfall, with the national unemployment rate holding steady at 4.1%, in line with previous expectations.
Revisions Reveal Weaker Job Growth in Recent Months
The Labor Department also revised employment figures for August and September downward, underscoring a cooling trend in job creation. August’s job gains were revised from 159,000 to 78,000, a drop of 81,000 positions, while September’s gains saw a reduction of 31,000, falling from 254,000 to 223,000. These adjustments indicate a softer labor market than initially reported.
Private Sector Struggles with Job Losses Amid Strikes
In October, private sector payrolls contracted by 28,000 jobs, contrary to the anticipated gain of 90,000. The manufacturing sector faced the largest impact, with employment declining by 46,000 positions, primarily due to strike activity within the transportation equipment manufacturing sector. Approximately 33,000 unionized Boeing machinists went on strike in early September, impacting job numbers.
Construction and Health Care Show Modest Growth
The construction industry contributed 8,000 new jobs in October, falling short of its 12-month average of 20,000. The health care sector, however, added 52,300 jobs, close to its typical monthly increase of 58,000. Meanwhile, government hiring rose by 40,000 jobs, aligning with its average monthly gain over the past year.
Natural Disasters and Employment Figures
The Bureau of Labor Statistics (BLS) noted that two hurricanes—Hurricane Helene and Hurricane Milton—affected the southeastern U.S. during the reporting period. Although no adjustments were made to October’s employment figures due to these storms, the BLS acknowledged potential impacts on payroll estimates, hours worked, and earnings in affected industries. However, isolating the effects of such extreme weather events was not feasible within the survey methodology.
Labor Force Participation Slightly Down
October also saw a minor dip in labor force participation, which edged down to 62.6% from 62.7% in September, with little change observed over the past year.
Outlook for U.S. Economy as Job Growth Slows
The latest employment data underscores an emerging deceleration in the U.S. labor market as economic uncertainties persist. With job creation lagging, the Federal Reserve and policymakers may face increased pressure to recalibrate strategies in an effort to sustain economic stability in the months ahead.
Source : Swifteradio.com
