Latest data shows a significant drop in nonfarm payroll jobs ahead of the upcoming elections.
The recent jobs data by the Bureau of Labor Statistics on Friday revealed a disappointing addition of only 12,000 nonfarm payroll jobs in October, marking the slowest growth since December 2020. This figure stands in stark contrast to the 223,000 jobs added in September and comes as the nation approaches crucial elections just days away.
Economists anticipated a decline in job gains due to several large strikes, including the ongoing walkout of more than 30,000 Boeing machinists, as well as the impacts of hurricanes Helene and Milton. The Bureau of Labor Statistics noted the sharp decline in job gains was partly due to “severe damage” caused by these hurricanes. Hurricane Helene made landfall just before the BLS began its survey of households and businesses for the jobs report, while Hurricane Milton struck Florida during the survey period.
The BLS indicated it could not determine the exact number of jobs affected by the hurricanes and strikes, stating, “It is likely that payroll employment estimates in some industries were affected by the hurricanes. However, it is not possible to quantify the net effect on the over-the-month change in national employment, hours, or earnings estimates because the establishment survey is not designed to isolate effects from extreme weather events.”
Despite these circumstances, the report fell well below forecasters’ expectations, which projected an addition of roughly 115,000 jobs for October. Adding to the concern, the BLS revised August and September job gains downward by a total of 112,000, signaling a potential slowdown in the labor market.
