11/03/2023

U.S. Job Growth Misses Expectations in October

The labor market slowed

U.S. job growth slowed in October in part as strikes by the United Auto Workers (UAW) union against Detroit's "Big Three" car makers depressed manufacturing payrolls, and the increase in annual wages was the smallest in nearly 2-1/2 years, pointing to an easing in labor market conditions.

The Labor Department's closely watched employment report on Friday also showed the unemployment rate rising to 3.9 percent last month, the highest since January 2022, from 3.8 in September. The decline in the jobless rate was despite people dropping out of the labor force. Also suggesting slowing labor market momentum, the economy added 101,000 fewer jobs in August and September than previously estimated.

The report strengthened financial market expectations that the Federal Reserve is done raising interest rates for the current cycle. The U.S. central bank held rates unchanged on Wednesday but left the door open to a further increase in borrowing costs in a nod to the economy's resilience.

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