The US labor market delivered a modest gain of 12,000 jobs in October, defying the forecast of a solid increase of 113,000. With such sluggish hiring, it seems the US private sector decided to slow down and take a breather. Apparently, the hurricanes in the southeastern part of the country and employees’ strikes have given the economy a nudge for a little pause.
The situation in the industrial sector is even more dismal, as employers reported 46,000 layoffs. Investors are wondering whether the manufacturing sector needs nonstop production. Meanwhile, the jobless rate held steady at an estimated 4.1%. This indicator was the only one that did not spring any surprises.
No wonder the US dollar gave a negative response to the poor nonfarm payrolls. Its index brushed off the 104.00 level and dropped down to 103.80, the lowest mark since October 21. Even the US currency decided to take a little break following the weak employment in October.
