Call it a November Surprise, and not one that Kamala Harris was hoping for. It appears that Bidenomics has failed. Job creation in October slowed significantly, reaching its weakest level since December 2020, as labor strikes and severe storms in the Southeast dampened employment gains.
The Bureau of Labor Statistics (BLS) reported Friday that nonfarm payrolls rose by only 12,000, sharply down from September’s revised numbers and well below the expected 100,000. This modest increase, compounded by downward revisions in prior months, reflects underlying challenges in the U.S. labor market. Despite the dip in job growth, the unemployment rate held steady at 4.1%, matching predictions.
The laggard job numbers were blamed on hurricanes and a strike at Boeing and some have said they distrust the report altogether after reports accused the White House of doctoring job numbers only to have them revised downward months later.
CNBC reports:
The report noted the impact of hurricanes Helene and Milton but said “it is not possible to quantify the net effect” of the storms on the jobs total.
Elsewhere, the bureau said average hourly earnings increased 0.4% for the month, slightly higher than the estimate, though the 4% 12-month gain was in line. The average workweek held steady at 34.3 hours.
Markets, though, largely ignored the bad news, with stock market futures poised for a strong open on Wall Street while Treasury yields plunged. The meager jobs numbers along with wages about in line with expectations help cement another interest rate cut from the Federal Reserve next week.
“At first glance, October’s jobs report paints a picture of growing fragility in the U.S. labor market, but under the surface is a muddy report roiled by climate and labor disruptions,” said Cory Stahle, an economist at the Indeed Hiring Lab. “While the impacts of these events are real and should not be ignored, they are likely temporary and not a signal of a collapsing job market.”
The Biden Administration over the summer revealed that nearly half of the jobs created during the past four years have gone to illegal immigrants.
JUST IN: Dismal jobs report released showing the U.S. added just 12,000 jobs in October, falling well short of economist estimates of 110,000.
46,000 manufacturing jobs were reportedly lost.
October was the worst month of job growth in nearly four years.
“The government… pic.twitter.com/cUy52zIaTq
— Collin Rugg (@CollinRugg) November 1, 2024
The timing of the report could play a role in the upcoming presidential election, where the economy and inflation have continued to be a key issue. With Democrat Kamala Harris and Republican Donald Trump neck-and-neck in the polls, the light job numbers are stirring last-minute campaign narratives.
Beyond the headline numbers, revisions to earlier months’ data painted an even softer picture of the job market. August’s job gain was reduced to 78,000, while September’s initial estimate dropped to 223,000, totaling a net reduction of 112,000 jobs over these months. Health care and government were bright spots, adding 52,000 and 40,000 jobs, respectively. However, losses in other areas tempered this growth, with temporary help services down by 49,000—a sector often seen as a gauge of future hiring demand.
[Read More: Dem Official Posts Passwords To Voting System Online]
