In the United States, job growth almost stalled last month.
The mentioned indicator is largely because strikes in the aerospace sector have provoked a decline in employment in the manufacturing industry. Also in this context, it is worth noting that hurricanes shortened the collection period for payrolls. Against this background, it is much more difficult to form a full-fledged vision of the current state of affairs in the labor market on the eve of the presidential elections of the United States, which will take place next week.
The US Labor Department’s closely watched employment report, published on Friday, November 1, became the last important economic information before citizens go to the polls to choose Democratic Vice President Kamala Harris or Republican former President Donald Trump as the country’s next president.
Currently, the United States labor market is experiencing a state of affairs that can be described as cooling. Employment gains for August and September were revised downward by 112,000 jobs. The unemployment rate in the United States showed no change in October, remaining at 4.1%. This result is because more people left the labor force.
According to media reports, economists expected that Federal Reserve officials would ignore the employment report and at their meeting next week decide on another interest rate cut.
Christopher Rupkey, chief economist at FWDBONDS, said that the mentioned report is not the one that United States residents and markets needed before the presidential election. According to the expert, in this case, there is no answer to the question of whether voters are better off than they were four years ago. It is worth noting that this is a very important issue in the political context.
Nonfarm payrolls increased by 12,000 jobs in the United States last month. It is worth noting that the corresponding growth of the indicator is the smallest since December 2020. This information was published by the Labor Department’s Bureau of Labor Statistics.
The United States economic system added 112,000 fewer jobs in August and September than previously reported. It’s worth noting that economists interviewed by the media predicted that the corresponding figure would increase by 113,000 jobs.
The response rate for the establishment survey in October, from which payrolls are calculated, decreased to 47.4%. This figure is the lowest since January 1991 and is also well below the average reading for October of 69.2% over the past five years.
As we have reported earlier, Key Fed Inflation Rate Hits 2.1%.
