The latest job report for October provides a comprehensive overview of the current state of employment in the United States. 

October’s Key Findings

The U.S. Bureau of Labor Statistics reveals that total nonfarm payroll employment saw a minimal increase of 12,000 jobs, maintaining the national unemployment rate at 4.1 percent. 

Key sectors include:

• Healthcare
• Government
• Temporary Help Services
• Manufacturing
• Construction

Additionally, the aftermath of Hurricanes Helene and Milton significantly impacted data collection and employment figures, particularly in the southeastern regions of the United States. These disruptions and their effects on employment figures underscore the complex and dynamic nature of the current labor market.

Sector-Specific Employment Trends

October’s employment landscape highlighted noteworthy shifts across the following sectors.

Healthcare

Health care added 52,000 jobs, with significant gains in ambulatory health care services and nursing facilities. 

Government

Government employment also rose by 40,000 jobs, with state governments contributing notably to this growth.

Temporary Help Services

Conversely, temporary help services experienced a downturn, losing 49,000 jobs.

Manufacturing

The manufacturing sector saw a decline, shedding 46,000 jobs largely due to strike activity in transportation equipment manufacturing. This decline underscores ongoing challenges in these industries, reflecting broader economic shifts and specific sectoral issues.

Construction

Construction employment saw a minimal increase of 8,000 jobs, with nonresidential specialty trade contractors adding 14,000 jobs. 

Unemployment Rates

In October, the unemployment rates for various demographic groups, including adult men, adult women, and racial categories such as Caucasians, African Americans, Asians, and Hispanics, remained relatively stable. Teenagers continued to face a significantly higher jobless rate at 13.8 percent, indicating persistent challenges for younger individuals seeking employment. The number of long-term unemployed, those out of work for 27 weeks or more, showed little change, accounting for 22.9 percent of the total unemployed population. Additionally, the number of people employed part-time for economic reasons stayed consistent, reflecting those who prefer full-time jobs but are unable to find them.

Effects Of Hurricanes On Employment Figures

Hurricanes Helene and Milton significantly impacted October's employment figures, particularly in the southeastern United States. Hurricane Helene made landfall on Florida’s Gulf Coast on September 26, 2024, just before the October reference periods for both the household and establishment surveys. Hurricane Milton struck Florida on October 9, 2024, during the reference periods, leading to large-scale evacuations of residents. These disruptions affected data collection, particularly in storm-hit areas, but did not change the standard survey procedures or the national unemployment rate.

The establishment survey’s initial collection rate for October was notably below average, although it was similar in both storm-affected and unaffected areas. The timing and duration of the collection period, which lasted only 10 days in October, played a significant role in this reduced collection rate. Despite these challenges, no modifications were made to the estimation procedures for the data, making it difficult to quantify the exact impact of the hurricanes on employment figures.

The storms likely influenced payroll employment estimates in certain industries, particularly those with a significant presence in the affected regions. However, the establishment survey is not designed to isolate the effects of extreme weather events, making it challenging to determine the net impact on national employment, hours, or earnings estimates. This underscores the complexities in assessing the full extent of such natural disasters on employment data.

Updates To Prior Months' Employment Data

The jobs report also incorporated adjustments to the employment figures for August and September. August's job gains were revised downward by 81,000 jobs, from +159,000 jobs to +78,000 jobs, while September's figures were revised down by 31,000 jobs, from +254,000 jobs to +223,000 jobs. These modifications reflect the complexities and challenges in data collection and accuracy, particularly as additional reports are received from businesses and government agencies.

The process of revising employment figures underscores the ongoing efforts to refine and update labor market data, ensuring that policymakers, businesses, and the public have access to the most current and accurate information. This iterative process of data revision highlights the importance of continuous monitoring and reassessment in capturing the true state of the labor market.

Wage Growth & Average Workweek

The average hourly earnings for all employees on private nonfarm payrolls increased by 13 cents, or 0.4 percent, reaching $35.46. Over the past 12 months, wages have grown by 4.0 percent, indicating a steady rise in earnings despite minimal job growth. For private-sector production and nonsupervisory employees, wages rose by 12 cents to $30.48.

While wages are climbing, the average workweek for nonfarm payroll employees remained stable at 34.3 hours. In the manufacturing sector, the average workweek showed little change, remaining at 39.9 hours, although there was a minor reduction in overtime hours. Specifically, overtime edged down by 0.1 hours to 2.8 hours. For production and nonsupervisory employees, the average workweek also edged down by 0.1 hours to 33.7 hours.

These trends suggest that while the number of jobs is not significantly increasing, those employed are seeing a gradual rise in their earnings. This wage growth may offer some economic relief, particularly in light of the challenges and disruptions faced in various sectors, including the impact of recent hurricanes on employment figures. Overall, the stability in hours worked, combined with rising wages, paints a mixed yet hopeful picture for the labor market.

For further reading, check out our other blogs on topics related to the job market.

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