The jobs report for October revealed weaker results than anticipated, presenting a mixed outlook for the U.S. economy in terms of employment growth across various sectors.
Health care and social assistance made the most significant contribution last month, adding 51,300 new positions according to data from the Bureau of Labor Statistics. If private education is combined with the health-care sector, as some economists suggest, the growth in this category would have been even higher at 57,000.
Government jobs saw the second-highest increase during the period, with a surge of 40,000 positions. This figure is close to the average monthly gain of around 43,000 jobs over the previous 12 months.
Additionally, wholesale trade and construction experienced some growth, with increases of 10,400 and 8,000 jobs, respectively.
On the other hand, several industries suffered significant losses. Professional and business services saw the most substantial decline, with a loss of 47,000 jobs. Manufacturing followed closely behind, decreasing by 46,000 positions.
The Bureau of Labor Statistics attributed the manufacturing decline to strike activity, particularly highlighting Boeing’s machinist strike, which has lasted for over seven weeks. However, a new contract offer between Boeing and the union was reached on Thursday and will be voted on Monday.
Julia Pollak, the chief economist at ZipRecruiter, noted that while the report reflects the impact of strikes and natural disasters like Hurricanes Helene and Milton, it also indicates a broader trend of a labor market slowdown over the past two years. She emphasized that the primary issue in the labor market remains constrained monetary policy rather than temporary disruptions like strikes and storms.
Leisure and hospitality, which led employment growth in the September report, and retail trade were among the sectors that experienced declines. The former saw a reduction of 4,000 jobs, while the latter had an even larger decrease of 6,400 positions.
