The October jobs report reveals a startling halt in U.S. job growth, with only 12,000 new jobs added—a figure that falls drastically short of expectations and raises concerns about the economy’s health.
Yes, that’s for the whole county.
At a Glance
- U.S. employers added just 12,000 jobs in October, far below the expected 113,000
- Unemployment rate remained steady at 4.1%
- Manufacturing sector lost 46,000 jobs, largely due to strikes
- Hurricanes Helene and Milton disrupted employment, particularly in leisure and hospitality
- August and September job numbers were revised down, erasing 112,000 jobs from earlier estimates
Job Market Stumbles: A Perfect Storm of Disruptions
The October jobs report paints a grim picture of the U.S. labor market, with job growth grinding to a near halt. Employers added a mere 12,000 jobs, a figure that pales in comparison to the robust gains seen in previous months…and in the years under the Trump administration. This dramatic slowdown can be attributed to a combination of factors, including manufacturing strikes and severe weather events, which have cast a shadow over the economy’s performance.
While the unemployment rate held steady at 4.1%, the private sector actually shed 28,000 jobs, revealing underlying weaknesses in the job market. The manufacturing sector was hit particularly hard, losing 46,000 jobs, largely due to strikes in the transportation equipment industry. This decline underscores the significant impact that labor disputes can have on economic indicators.
Who wants to bet President Joe Biden is glad he’s no longer running? Imagine having to defend a record this bad…
Weather Woes and Political Storms
Adding to the economic turbulence, Hurricanes Helene and Milton wreaked havoc on the southeastern United States, disrupting employment particularly in the leisure and hospitality sectors. The Bureau of Labor Statistics acknowledged the difficulty in quantifying the precise impact of these weather events on the job numbers, further muddying the waters for economic analysts and policymakers alike.
“Anyone who is ignoring the noise in this report has a political agenda, not an economic one,” Jared Bernstein, chairman of the Council of Economic Advisers, said.
As we approach a critical election year, the jobs report has become a political football. The Biden administration is quick to attribute the weak numbers to temporary disruptions, but Trump, and millions of Americans, know that there’s far more to it than that.
Despite the dismal job growth, there are some silver linings in the economic clouds. Average hourly earnings increased by 0.4% in October, translating to a 4% rise over the past year. This wage growth, while positive for workers, raises concerns about inflationary pressures that the Federal Reserve has been working to contain.
Consumer spending remains fairly robust, driving economic growth despite challenges in other sectors. However, this resilience is tempered by the fact that inflation has cooled from its 2022 peak but remains about 20% above pre-2021 levels. The persistent inflation erodes the purchasing power of American families, despite the nominal wage increases.