U.S. sees modest job growth with mixed sector performance

The latest employment report by the U.S. Bureau of Labor Statistics outlines a moderate increase in total nonfarm payroll employment, rising by 150,000 in October. Meanwhile, the unemployment rate experienced minimal change, steadying at 3.9 percent. This update, released today, highlights notable job gains in sectors such as health care, government, and social assistance. However, it also signals a decline in manufacturing employment attributed to strike activity.

The comprehensive report draws from two primary monthly surveys: the household survey, which tracks labor force status across demographic characteristics, and the establishment survey, which measures nonfarm employment, hours, and earnings categorized by industry.

As per the household survey, key indicators like the unemployment rate, holding at 3.9 percent, and the number of unemployed persons, standing at 6.5 million, demonstrated marginal shifts in October. Nevertheless, these metrics display a slight uptick from their recent lows in April, increasing by 0.5 percentage points and 849,000, respectively.

Examining unemployment rates across different groups, little fluctuation was observed among adult men (3.7 percent), adult women (3.3 percent), teenagers (13.2 percent), Whites (3.5 percent), Blacks (5.8 percent), Asians (3.1 percent), and Hispanics (4.8 percent) during October.

Within the unemployed cohort, the count of permanent job losers rose by 164,000 to reach 1.6 million. Conversely, the number of individuals on temporary layoff remained relatively stable at 873,000. Notably, the long-term unemployed, constituting those jobless for 27 weeks or more, sustained minimal changes at 1.3 million, constituting 19.8 percent of all unemployed individuals.

Additionally, workforce participation and employment-population ratios experienced negligible alteration, remaining at 62.7 percent and 60.2 percent, respectively. The count of persons working part-time due to economic reasons, totaling 4.3 million, remained unchanged in October, signifying individuals seeking full-time employment but unable to secure it.

Meanwhile, the establishment survey revealed a nuanced landscape. Despite the overall job increase of 150,000, below the 12-month average gain of 258,000, sectors like health care, government, and social assistance witnessed employment growth. Health care specifically added 58,000 jobs, while government employment surged by 51,000, reaching pre-pandemic levels from February 2020.

Conversely, manufacturing suffered a setback, losing 35,000 jobs primarily due to strike-induced declines in motor vehicles and parts production. Some industries, such as leisure and hospitality, professional and business services, and transportation and warehousing, displayed marginal or limited changes.

Moreover, the report highlighted a rise in average hourly earnings for private nonfarm payrolls and private-sector production employees, indicating a 4.1 percent increase over the past year. However, the average workweek for all employees in private nonfarm payrolls slightly reduced to 34.3 hours in October.

The findings from August and September were revised downward, indicating 101,000 fewer jobs created during that period compared to previously reported figures.