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Despite GM strike, October jobs see gains
Despite a General Motors strike that depressed the month's numbers, October's "job report was a solid one which supports [last] week's Fed decision of a hawkish rate cut," said NAFCU Chief Economist and Vice President of Research Curt Long. October saw 128,000 jobs added, and the September and August gains were revised up by 44,000 and 51,000 jobs, respectively.
"Job gains were above expectations and the service sector is growing, but wage growth remains slow," Long added. "More positive revisions of past months' numbers is a good sign…The labor force participation rate rose to its highest point since 2013, but modest wage growth suggests there is further room to run for the labor market.
"[Federal Reserve] Chairman [Jerome] Powell indicated this week that there is a high bar to clear for any further interest rate moves, whether easing or tightening. The labor market will continue to improve into 2020, providing a sturdy buffer against recession," Long concluded.
The unemployment rate rose 0.1 percentage points to 3.6 percent in October, while the labor force participation rate rose slightly (+0.1 percent) to 63.3 percent, according to the Bureau of Labor Statistics. Average hourly earnings rose six cents to $28.18 in October and are up 3 percent over the year.
Total private-sector payroll employment increased 131,000 jobs, the goods-producing sector shrunk 26,000 jobs, the service sector increased 157,000 jobs, and public sector employment declined 3,000 jobs in October.
Results among the major industries were mostly positive during the month: The leisure and hospitality sector added 61,000 jobs, followed by the education and health sector (+39,000 jobs), professional and business services sector (+22,000 jobs) and financial sector (+16,000). Manufacturing employment fell 36,000 jobs, but includes an estimated 42,000 workers from the GM strike.
The FOMC will next meet Dec. 10-11. View more of NAFCU's research analyses.