In October, the US economy added 150,000 jobs, following a robust September jobs report. However, the unemployment rate saw a slight uptick to 3.9%, indicating a potential slowdown in the labor market. This increase in unemployment is partially attributed to “strike activity,” which negatively impacted job creation in the manufacturing sector, according to the Bureau of Labor Statistics (BLS).
Economists surveyed by Bloomberg had anticipated the creation of 180,000 jobs in October, with the unemployment rate remaining stable. However, the actual numbers fell short of expectations, with 35,000 fewer jobs than projected in the manufacturing sector, largely due to the extended strike by the United Auto Workers (UAW). This week, the UAW reached a tentative agreement with major auto manufacturers, concluding the strike.
Despite the UAW strike’s impact on manufacturing, job growth in other sectors remained healthy. Additionally, wages experienced a 0.2% increase in average hourly earnings, contributing to a year-on-year wage growth of 4.1%.
Key figures that will be closely monitored by Wall Street, as reported by Bloomberg, include:
– Nonfarm payrolls: 150,000 (Expected: +180,000, Previous: +297,000)
– Unemployment rate: 3.9% (Expected: 3.8%, Previous: 3.8%)
– Average hourly earnings, month-on-month: 0.2% (Expected: +0.3%, Previous: +0.2%)
– Average hourly earnings, year-on-year: 4.1% (Expected: +4.0%, Previous: +4.2%)
– Average weekly hours worked: 34.3 (Previous: 34.4)
The US job market exhibited signs of a slowdown in October following a strong performance in September. While the UAW strike took a toll on manufacturing jobs, wages and hours worked remained higher compared to the previous year.
In conclusion, the October jobs report reflects a notable addition to the US economy workforce, despite the challenges posed by factors such as strike activity, highlighting the resilience and adaptability of the job market in the face of evolving circumstances. Investors will be keeping a close eye on developments in various sectors as the US economy strives for equilibrium without compromising job security for American workers.
Source: Yahoo Finance