Job growth took a significant hit in October as hurricane disruptions and a prolonged Boeing strike affected the labor market, the Labor Department reported Friday. The economy added a seasonally adjusted 12,000 jobs last month, a stark contrast to September’s gain of 223,000. Economists had anticipated a smaller increase of 100,000, factoring in the expected impact of storms and strikes. The unemployment rate held steady at 4.1%, matching expectations.
The Boeing strike, which began in mid-September, saw 33,000 workers sidelined through mid-October, according to Labor Department data. Additionally, Hurricanes Helene and Milton hit hard, causing widespread temporary job losses across the Southeast. Economists predict that many of these losses may reverse in November as workers return.
The Federal Reserve remains poised to lower its interest rate target next week, a move Friday’s report is unlikely to hinder. Federal officials, however, may face challenges in assessing true labor market strength in the coming months amid ongoing disruptions. Economic growth remains robust, with GDP expanding at a 2.8% annual rate in Q3. Nevertheless, as the labor pool shrinks, companies find it increasingly difficult to hire qualified workers, according to RSM US Chief Economist Joe Brusuelas.
Despite these challenges, the job market remains resilient, with both Vice President Kamala Harris and former President Donald Trump using the report to bolster their campaign messaging.–News Desk