- The US economy added just 12,000 jobs in October, way under the forecast of 106,000.
- The unemployment rate remained at 4.1% as expected.
- Labor market watchers expected cooler job growth than September’s, partly because of recent hurricanes and strikes.
The US economy added just 12,000 jobs in October, falling way short of the forecast of 106,000.
The unemployment rate in October matched expectations and held steady at 4.1%.
Economists and labor market watchers expected job growth to slow after the back-to-back natural disasters of Hurricane Helene and Hurricane Milton in late September and early October disrupted life in several states.
“October data from the household and establishment surveys are the first collected since Hurricanes Helene and Milton struck the United States,” a news release from the Bureau of Labor Statistics on Friday said. “These hurricanes caused severe damage in the southeast portion of the country.”
Labor strife also probably weakened October’s job growth numbers. The Bureau of Labor Statistics said before Friday’s news release that around 44,000 hotel workers, Boeing workers, and others were on strike as data for the report was being gathered.
Those two factors weighing on the headline job creation numbers mean the Federal Reserve will likely take this month’s report with a grain of salt when deciding whether to pause or continue its interest rate cuts.
“The Federal Reserve will likely look through the noisy October jobs report and rely on the totality of labor market data which continues to point to a controlled downshift in job creation and labor supply absorption,” EY senior economist Lydia Boussour said ahead of the report.
The mixed results in the jobs report could complicate the Fed’s interest rate plans into next year. The report is just one of many pieces of data Fed members will rely on when making their decision next week. Before the new data release, traders overwhelmingly thought the Fed would cut interest rates by 25 basis points next week, which would be less than the previous 50-basis-point cut in September.
The new jobs report is the last US employment report before the presidential election on November 5. An October survey from AP-NORC found that 43% of registered voters “trust” Kamala Harris can do a better job handling jobs and unemployment, close to the 41% of registered voters that said Donald Trump.
This is a developing story. Please check back for updates.
