The U.S. economy added far fewer jobs than expected in October 2024as the unemployment rate remained unchanged at 4.1%. Friday’s jobs report marks the last piece of economic data released before the presidential election.
Total nonfarm payroll employment, the number of people employed at all U.S. businesses except farms or the military, was basically unchanged at 12,000 jobs added in October after gaining 223,000 jobs in September, the Bureau of Labor Statistics said Friday, Nov. 1. The median estimate for October job growth was 117,500 according to FactSet. The unemployment rate did not change from September’s 4.1%.
October’s jobs survey was impacted by storms and strikes, with Hurricane Helene hitting before the collection period and Hurricane Milton happening during it. Meanwhile, the ongoing Boeing strike and the ripple effects from a short-lived longshore worker strike may have put downward pressure on the number.
“Hurricane Milton struck Florida on October 9, 2024, during the reference periods for both surveys. Prior to the storm’s landfall, there were large-scale evacuations of Florida residents,” BLS said.
The Bureau of Labor Statistics said 44,000 workers were on strike when it conducted its survey for the month. Boeing machinists account for 33,000 of those striking workers.
Employment in manufacturing fell by 46,000 for the month amid those major strikes.
The state of the jobs market will weigh heavy on the Federal Reserve as it meets next week to discuss monetary policy and decide whether or not to further cut its benchmark interest rate. The Fed cut its rate by 50 basis points in September. The central bank’s dual mandate is to maintain full employment and keep inflation within its 2% target.
The personal consumption expenditures price index, which is the Fed’s preferred inflation gauge, dropped to 2.1% in September.
The Bureau of Labor Statistics said the number of people not working who want a job is at 5.7 million, essentially unchanged from September. Health care added 52,000 new jobs, just about in line with the average monthly gain of 58,000 over the last 12 months.
August’s job growth was revised down to adding just 78,000 from a previously reported 159,000 jobs added. Meanwhile, September’s report was revised down by 31,000 to 223,000 jobs added for the month.
