The Labor Department's recent report reveals a slight increase in U.S. employment for October, influenced by gains in healthcare and government sectors, which were partially offset by reductions in temporary and manufacturing positions. According to the report, non-farm payrolls rose by a modest 12,000 jobs, falling well short of economists' expectations of a 113,000 job increase.
The data also includes a modest downward revision for job growth in September and a more substantial downward revision for August. September saw an increase of 223,000 jobs, rather than the previously reported 254,000, and August's figures were adjusted to a rise of 78,000 from the earlier reported 159,000. These revisions indicate that job growth for the two months was 112,000 fewer than initially reported.
In October, the healthcare and social assistance sector contributed 51,300 new jobs, and the government added 40,000 positions. Conversely, temporary help services saw a decline of 48,500 jobs, and the manufacturing sector lost 47,000 jobs, partly due to a strike by Boeing machinists.
The report acknowledged the impact of Hurricanes Helene and Milton on the employment figures but stated that the survey methodology does not allow for precise determination of their effects. Nationwide's Chief Economist, Kathy Bostjancic, commented on the situation, noting that October's employment data presents an unclear signal for the Federal Reserve and markets. She attributed this to the effects of both the hurricanes and the Boeing strike, estimating a payroll reduction of 100,000.
Bostjancic further remarked, "These figures, coupled with a decline in job openings, suggest a cooling labor market, reinforcing our prediction of a 25 basis points rate cut by the Fed next week."
The unemployment rate remained steady at 4.1 percent in October, matching both the previous month's rate and economists' forecasts. The stability in unemployment was due to a significant drop in the household survey measure of employment by 368,000, alongside a decrease in the labor force by 220,000.
Additionally, the Labor Department reported that average hourly earnings for employees increased by $0.13, or 0.4 percent, reaching $35.46 in October. The annual rate of wage growth also slightly rose to 4.0 percent, up from a revised 3.9 percent in September.
