US employers added only 12,000 jobs last month due to hurricanes and strikes

U.S. employers added just 12,000 jobs in October, a figure that economists say was held back by the effects of strikes and hurricanes that left many workers temporarily off payrolls.

The report provided a somewhat blurry view of the labor market at the end of a presidential race that has largely revolved around voters’ feelings about the economy.

Last month’s hiring increase was significantly smaller than the 223,000 jobs added in September. But economists have estimated that hurricanes Helene and Milton, combined with strikes at Boeing and elsewhere, had the effect of reducing net employment growth by tens of thousands of jobs in October.

Friday’s report from the Labor Department also showed the unemployment rate remained at 4.1% last month. The low unemployment rate suggests that the labor market remains fundamentally healthy, although not as strong as it was earlier this year. Combined with an inflation rate that has fallen from its 2022 peak to near pre-pandemic levels, the broader economy appears to be on solid footing heading into Election Day.

The government did not estimate how many jobs were likely temporarily cut from payrolls last month. But economists have said they believe the storms and strikes led to the loss of up to 100,000 jobs. Reflecting the impact of the strikes, factories cut 46,000 jobs in October.

In a warning sign for future hiring, temporary job placement companies added 49,000 jobs last month. Companies often hire temporary workers before committing to full-time employees.

On the other hand, health care companies added 52,000 jobs in October, and state and local governments added 39,000.

Economists have noted that the United States has the strongest of the world’s most advanced economies, one that has proven surprisingly durable despite the pressure of high interest rates. This week, for example, the government estimated that the economy expanded at a healthy 2.8% annual rate last quarter, and that consumer spending — the heart of the economy — helped drive growth.

However, as voters choose between former President Donald Trump and Vice President Kamala Harris, large numbers of Americans have said they are unhappy with the state of the economy. Despite plummeting inflation, many people are exasperated by high prices, which rose during the recovery from the pandemic recession and remain about 20% higher on average than they were before inflation began accelerating to early 2021.

[Con información de The Associated Press]

Connect with the Voice of America! Subscribe to our channels YouTube, WhatsApp and to newsletter. Turn on notifications and follow us on Facebook, x and instagram.