Job creation slowed in October to the weakest pace since late 2020 as the impact of the Southeast storms and a significant labor crisis hit employment.
Nonfarm payrolls rose by 12,000 this month, a significant decline from September and below the Dow Jones estimate of 100,000, the Bureau of Labor Statistics reported Friday. It was the lowest increase since December 2020.
However, the unemployment rate remained at 4.1%, as expected. A broader measure of unemployment that includes discouraged workers and those holding part-time jobs for economic reasons also remained unchanged at 7.7%.
In the reporting, the BLS noted that 44,000 manufacturing jobs were likely lost as a result of the Boeing strike, for a total of 46,000 job losses.
Additionally, the report noted the impact of Hurricanes Helene and Milton, but said “it was not possible to quantify the net effect” of the storms on total jobs.
Elsewhere, the bureau said average hourly wages rose 0.4% this month, slightly above estimates, although the 12-month increase of 4% was in line. The average weekly working time remained constant at 34.3 hours.
The release comes just days before the presidential election, which pits Democrat Kamala Harris and Republican Donald Trump in what most polls show is a deadlock race. With the economy on the front lines of the fight, the easy jobs numbers “cast a bleak shadow over next week,” said Lisa Sturtevant, chief economist at Bright MLS.
The weak October report also contained significant downward revisions compared to previous months. August only saw an increase of 78,000, while the original estimate for September fell to 223,000. Combined, the net revisions reduced the previously reported total number of jobs created by 112,000.
Health care and government again led the way in job creation, with 52,000 and 40,000 jobs, respectively. However, there were job losses in several sectors.
In addition to the expected decline in manufacturing, there was a decline of 49,000 in ancillary services. The category is sometimes viewed as an indicator of underlying employment strength and has seen a decline of 577,000 since March 2022, according to the BLS.
Another leading sector, leisure and hospitality, saw a decline of 4,000, while retail and transport and warehousing also reported slight declines.
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