Hurricanes and the Boeing strike had an influence on the U.S. economy, which only added 12,000 jobs in October.
US Economy Struggles in October : The employment picture was negatively impacted by storms in the Southeast and a major labor standoff, which caused job creation in October to fall to its lowest level since late 2020. However, the unemployment rate remained consistent with forecasts of 4.1%.
At 7.7%, a more comprehensive indicator of unemployment that accounts for discouraged workers and those who work part-time for financial reasons remained constant. The Bureau of Labor Statistics said Friday that nonfarm payrolls climbed by 12,000 for the month, which was less than the Dow Jones projection of 100,000 and a significant decrease from September. In a report that was originally anticipated to be negative, October saw the lowest rise since December 2020.
Although the BLS acknowledged that the establishment survey results, which highlight the headline nonfarm payroll growth, were “well below average” and the lowest in over 30 years, it stated that this was true for both storm-affected and non-storm-affected areas.
Although the 4% 12-month growth remained consistent, the agency said that average hourly wages rose 0.4% for the month, which was somewhat better than the forecast. At 34.3 hours, the average workweek remained consistent. The weak employment data and earnings that are roughly in line with forecasts support the Federal Reserve’s decision to decrease interest rates again the following week.
The unemployment rate in the US
Significantly lower revisions from earlier months were also included in the dismal October report. September’s initial estimate dropped to 223,000, while August’s rise was reduced to just 78,000. When taken as a whole, the net changes reduced the previously stated job creation totals by 112,000. With 52,000 and 40,000 new jobs, respectively, the government and healthcare sectors once again led the way in job creation. However, there were employment losses in several industries.
The anticipated decline in manufacturing was accompanied by a 49,000 decrease in temporary assistance services. Since March 2022, the category—which is occasionally used as a stand-in for underlying job strength—has decreased by 577,000.
The hiring figures were significantly worse in the household survey, which is used to determine the unemployment rate.
This indicated that the workforce was shrinking by 220,000 and that 368,000 fewer persons reported having jobs. Part-time employment fell by 227,000, while full-time employment fell by 164,000.
Before the announcement, the average monthly job creation rate for 2024 was close to 200,000, which was almost 60,000 less than the rate for the same time last year but still showed a strong hiring pace. The central bank is likely to cut by a quarter point at each of its two remaining sessions this year, according to pricing in financial markets. Next Thursday, the Federal Open Market Committee, which sets interest rates, will make its announcement.
What Impact Will the Results of the US Election of 2024 Have on the Economy and Stock Market?
Given the current political climate, particularly in light of the results of the US election in 2024, Donald Trump and Kamala Harris are in a close race for the US presidency. It is impossible to predict what will happen in the US stock market in the end. Even though polling places have already opened in several states, it is still unclear which candidate is currently leading the remaining states.
US election results 2024: If Trump wins, would the US stock markets soar?
Today is essentially the last test for both presidential candidates running for office, and according to earlier reports, the outcome of the US election in 2024 might have a significant impact on the US stock markets. Because of the extreme uncertainty this time, some people are even predicting a stock market crash.
An uptick and surge in the “Trump trades,” where international investors are currently heavily invested, would result from a complete Trump sweep in the US elections.
How would the US economy be affected by a Kamala Harris sweep?
A full Democrat sweep, on the other hand, would ultimately have an immediate impact on the US currency and hurt the US stock market because of greater income taxes and more stringent banking regulations.