The U.S. added 150,000 nonfarm payroll jobs in October as the unemployment rate ticked up to 3.9%, according to Bureau of Labor Statistics (BLS) data released Friday.
Economists had anticipated that the country would add 180,000 jobs in October compared to the 336,000 jobs that were added in September and that the unemployment rate would remain at 3.8%, according to Reuters. On Wednesday, at the conclusion of its Federal Open Market Committee meeting, the Federal Reserve announced that it would be keeping its federal funds rate steady in the range of 5.25% and 5.50%, a 22-year high, after a series of 11 rate hikes that started in March 2022 in an effort to tame inflation. (RELATED: One Of The 2010s’ Trendiest Startups Plans To File Bankruptcy: REPORT)
The healthcare sector reported the largest increase in jobs, adding 58,000 for the month of October, with the government following closely behind, adding 51,000 for the month, according to the BLS. Employment in manufacturing fell by 35,000 in October, reflecting strike activity in the sector, particularly from the United Auto Workers, who engaged in a partial strike against Ford, Stellantis and General Motors.
The number of jobs added in previous months was once again revised down, with August adding 165,000 jobs instead of 227,000 and September adding 297,000 jobs instead of 336,000, according to the BLS. The U.S. economy added 101,000 fewer jobs than previously thought due to these revisions.
The economy grew at a blistering pace in the third quarter of 2023, with Gross Domestic Product rising 4.9% year-over-year. The gain was driven by consumer and government spending, while average Americans drain their savings, boosting consumption.
Initial UI claims rise slightly but remain relatively low; continuing claims rises above 1.8 million; in addition to layoffs, businesses are not replacing voluntary job leavers at previous pace, so initial claims are filtering through to continuing more – expect this to continue: pic.twitter.com/gT3EIU5V8a
— E.J. Antoni, Ph.D. (@RealEJAntoni) November 2, 2023
Inflation remained elevated in September, rising 3.7% year-over-year, the same as in August, far from the Fed’s 2% target. Inflation has decelerated since its peak of 9.1% in June 2022.
“Last month’s jobs report was nowhere near as rosy as the headline numbers made it appear, as the hiring in September was essentially all part-time jobs and disproportionately public sector,” Antoni told the DCNF. “Also, real weekly earnings fell, both month-over-month and year-over-year. The broader economic outlook remains soft, with a recession likely in early 2024. Slower job growth, and then eventual job losses, will assist in determining precisely where we are on that timeline.”
While September’s job report showed higher-than-expected growth, the number of Americans employed in full-time jobs dropped by 22,000. In that same time period, the number of Americans employed in part-time positions increased by 151,000 as more Americans took part-time jobs and even second or third jobs to make ends meet.
All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact email@example.com.