The US economy added 12,000 jobs in October, well below economists’ expectations
FOX Business’ Stuart Varney examines why many Americans are unhappy with their financial situation as the US economy improves.
US job growth slowed in October, well below economists’ expectations, while the unemployment rate was unchanged.
On Friday the Labor Department reported that employers added 12,000 jobs in October, below the 113,000 gain predicted by LSEG economists.
The unemployment rate was 4.1%, in line with expectations.
The number of jobs added in the past two months was revised downward, with August job creation revised down by 81,000 from a gain of 159,000 to 78,000, and September revised down by 31,000 from 254,000 to 223,000.
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Private sector wages contracted by 28,000 in October after LSEG economists forecast a 90,000 rise.
The manufacturing sector lost 46,000 jobs in October, which the Bureau of Labor Statistics (BLS) noted was due to a strike in the transportation equipment manufacturing sector. About 33,000 machinists who are members of Boeing have been on strike since early September.
The construction sector added 8,000 jobs in October, below its average of 20,000 a month last year. (Photographer: Al Drago/Bloomberg via Getty Images/Getty Images)
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The construction sector added 8,000 jobs – below the average of 20,000 jobs per month over the past 12 months.
Health care added 52,300 jobs in October, close to its monthly gain of 58,000 last year.
The government added 40,000 jobs in October, largely in line with its average monthly gain of 43,000 over the past 12 months.
The BLS noted that Hurricane Helene occurred in the Southeast earlier than the reference period for its employment survey, while Hurricane Milton struck the same area during the reporting period.
The agency noted that it made no changes to the October report due to the hurricanes, explaining that “it is possible that employment estimates in some industries were affected by the hurricanes; however, it is not possible to estimate the net effect on the over-the-month change in national employment, hours, or income estimates because the establishment survey is not designed to isolate the effects of extreme weather events.”
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The manufacturing sector shed 46,000 jobs in October, partly due to a strike by Boeing machinists. (Photographer: Emily Elconin/Bloomberg via Getty Images/Getty Images)
The labor force participation rate was 62.6% in October, down slightly from 62.7% the previous month and little changed over the past year.
Average hourly earnings for all self-employed workers rose 13 cents, or 0.4%, to $35.46 in October. Over the past 12 months, average hourly earnings have increased by 4%.
The number of people without permanent jobs rose to 1.8 million in October, while the number of people laid off was unchanged at 846,000.
The number of people classified as long-term unemployed, defined as having been out of work for 27 weeks or more, was little changed at 1.6 million in October, up from 1.3 million last year. Long-term unemployment accounts for 22.9% of all unemployed people.
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“As expected, the October jobs report shows a significant impact from Hurricanes Milton and Helene,” said Bill Adams, chief economist at Comerica Bank. “The major economic events in October make it difficult to know whether the labor market was changing this month, but the slowdown in employment growth in September shows that it is cooling before these issues emerge.”
The jobs data comes as the Federal Reserve meets next week, with markets expecting policymakers to announce a 25 basis point cut in interest rates.
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