Total nonfarm payrolls showed minimal growth in October, adding just 12,000 jobs, while the unemployment rate remained steady at 4.1%.
The data from the US Bureau of Labor Statistics shows healthcare and government sectors experienced continued growth, but temporary help services faced losses, and the manufacturing sector took a hit due to strike activity.
The October employment report from the Bureau of Labor Statistics combines data from two major monthly surveys:
- Household Survey: Measures labor force status, including unemployment trends.
- Establishment Survey: Tracks nonfarm employment, hours, and earnings by industry.
The data also reflects the effects of Hurricanes Helene and Milton, which caused significant damage across the southeastern US.
Household Survey Insights
- Unemployment Rate Steady at 4.1%: The jobless rate remained unchanged from September, with approximately 7.0 million people unemployed, an increase from 3.8% and 6.4 million unemployed one year earlier.
- Minor Variations Across Demographics:
- Unemployment for adult men at 3.9% and adult women at 3.6% showed little change.
- Teen unemployment remained high at 13.8%.
- Racial group unemployment rates were similarly stable, with Whites at 3.8%, Blacks at 5.7%, Asians at 3.9%, and Hispanics at 5.1%.
- Permanent Job Losses Increase: Permanent job losses reached 1.8 million, while temporary layoffs stayed near 846,000.
- Long-Term Unemployment: The count of long-term unemployed (jobless for over 27 weeks) was at 1.6 million, accounting for 22.9% of the total unemployed, up from 1.3 million a year prior.
- Labor Force Participation: The participation rate held at 62.6%, with the employment-population ratio at 60%, showing little movement over the year.
Workforce Dynamics: Part-Time and Marginally Attached Workers
- Part-Time for Economic Reasons: The number of people working part-time involuntarily was stable at 4.6 million, driven by reduced hours or lack of full-time job availability.
- Labor Force Marginally Attached: The pool of people desiring jobs but not actively seeking employment was at 5.7 million, with discouraged workers—those who believe no jobs are available for them—making up 379,000.
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Establishment Survey Findings
Total nonfarm employment grew slightly in October, with key trends and changes in specific industries:
- Health Care Sector: Added 52,000 jobs, continuing a steady monthly growth pattern in ambulatory health care services (+36,000) and nursing facilities (+9,000).
- Government Employment: Continued its upward trend, adding 40,000 positions, with state government employment increasing by 18,000.
- Temporary Help Services Decline: This sector saw a loss of 49,000 jobs in October, marking a broader drop of 577,000 positions since its peak in March 2022.
- Manufacturing Struggles Due to Strikes: The manufacturing sector lost 46,000 jobs, with transportation equipment manufacturing losing 44,000 jobs due to strikes.
Most other industries—including mining, retail, and financial activities—experienced little or no change in employment.
Wage and Hourly Adjustments
- Wages Rise Slightly: Average hourly earnings for all private nonfarm employees rose by 13 cents to $35.46, reflecting a 4.0% increase over the past year. Wages for private-sector production and nonsupervisory employees also rose by 12 cents, reaching $30.48.
- Workweek Steady: The average workweek for private nonfarm employees stayed at 34.3 hours, while manufacturing overtime slightly declined to 2.8 hours.
Statement from President Biden:
“In October, unemployment was unchanged at 4.1%, but the devastation from Hurricanes Helene and Milton, and new strike activity, lowered job growth. Job growth is expected to rebound in November as our hurricane recovery and rebuilding efforts continue.
“America’s economy remains strong, with 16 million jobs created since I took office, including an average 180,000 jobs created each month over the last year—more than the year before the pandemic.
“We have the lowest average unemployment rate of any administration in 50 years, our economy has grown more than any presidential term this century, incomes are up $4,000 over prices, and inflation has fallen nearly to its 2% target.
“There’s more work to do. We are working every day to lower costs for working families on rent, prescription drugs, health insurance, and child care. Congressional Republicans, however, are proposing a national sales tax that would cost families nearly $4,000 a year, hurt American manufacturing, and cut hundreds of thousands of jobs. They are fighting for tax breaks for billionaires and big corporations—we are fighting to grow the middle class.”
Adjustments in Previous Employment Figures
August and September payroll data were revised, showing 112,000 fewer jobs than previously reported, following updated data from businesses and government agencies.
Looking Ahead: Steady Pace Amid Challenges
While sectors such as health care and government continue to expand, overall employment growth remains modest, with some sectors feeling the impact of recent disruptions and natural disasters. This stable trend reflects both resilience and ongoing challenges in the U.S. labor market.
