October Jobs Report: Slow Job Growth Amid Hurricanes and Strikes 

The Bureau of Labor Statistics (BLS) on Friday reported the U.S. economy added 12,000 jobs in October, a sharp decrease from September—revealing the smallest job gains we’ve seen since December 2020, if this report remains unchanged.  

The government revised its job reports for August and September. The new numbers show that 112,000 fewer jobs were added than originally reported. 

Well below economist’s expectations, the BLS confirmed this data reflects the impact of the hurricanes and strikes that occurred last month—including challenges in capturing data from impacted areas. “However, it isn’t possible to quantify the net effect on the over-the-month change in national employment, hours, or earnings estimates because the establishment survey is not designed to isolate effects from extreme weather events,” the BLS stated in the release. It also notes a decline in job growth in manufacturing due to strikes. 

The unemployment rate remained unchanged at 4.1%, in line with expectations.  

Other important economic data released includes: 

• Roughly 4.6 million people were underemployed in October, working part-time involuntarily. 
• Healthcare (+52,000) and government (+40,000) were trending industries. 
• Over the past 12 months, average hourly earnings have increased by 4%.  
• Average hourly earnings for all employees on private nonfarm payrolls rose by 13 
  cents. 
• The labor force participation rate was 62.6% in October, down slightly from 62.7% a month ago and has changed little over the course of the last year. 
• Manufacturing employment decreased by 46,000 in October with overtime 
  decreasing by 0.1 hour to 2.8 hours 

The ADP National Employment Report, released two days prior to the jobs report showed private sector employment increased by 223,000 jobs in October. It’s not unusual for the reports to differ significantly.  

“Even amid hurricane recovery, job growth was strong in October. As we round out the year, hiring in the U.S. is proving to be robust and broadly resilient,” says Nela Richardson, Chief Economist at ADP. 

This jobs data comes as the Federal Reserve is scheduled to meet in early November, with markets expecting policymakers will announce another cut to interest rates.

This is the last major economic indicator that will be released prior to Election Day on November 5.