US job growth in October experienced its weakest performance since 2020, primarily influenced by the aftermath of severe hurricanes and a strike at Boeing Co. According to the latest data, nonfarm payrolls increased by only 12,000 last month, with revisions indicating that hiring in the previous two months was also less robust than initially reported.
This trend suggests a continued cooling in the underlying labor market.
The latest employment figures may impact the Federal Reserve’s monetary policy, as they keep the central bank on course to potentially lower interest rates by a quarter-point in the upcoming meeting. This employment report is significant, as it represents the last major economic data release ahead of the US presidential election.
Despite the decline in hiring, the unemployment rate remained low in October, amid a broader economic landscape characterized by resilient consumer spending. The next president will inherit an economy that, while showing signs of cooling job growth, is still largely driven by American consumers who continue to spend even after prolonged periods of high prices and interest rates.
According to the misery index, which combines the inflation and unemployment rates, the current economic conditions are more favorable than in most recent election years, excluding 2016. This index suggests that Americans are not experiencing high levels of economic distress despite the fluctuations in the labor market.
Bloomberg contributed to this report.
