The Bureau of Labor Statistics released its report on the U.S. payrolls for October, and the results showed an increase of 150,000 jobs from the previous month. This is less than what was expected, as economists had anticipated a gain of 190,000 jobs. The unemployment rate remained unchanged at 3.7%.
The job gains for October were concentrated in professional and business services, healthcare, and manufacturing. The health care sector added 25,000 jobs, while the professional and business services category increased by 32,000 positions. The manufacturing sector increased by 11,000 jobs, as the auto industry saw a surge in production after a five-week strike. This was the fourth straight month of good news for manufacturers.
Despite the slow employment growth, wage growth rose at a healthy pace. Average hourly earnings rose 0.4%, which translates to a 0.8% increase on a yearly basis. This is the strongest wage growth seen in 2019 thus far.
The October payrolls report was not met with a lot of enthusiasm, however, as the job growth came in below expectations. The labor market, which has been an engine of economic growth for the past decade, is now starting to show signs of weakness. The Trump administration, meanwhile, remains optimistic, pointing out that the lowest unemployment rate and best wage growth seen since 1969 is still in effect.
Overall, the October payrolls figures appear to hint at a slowing U.S. economy, despite the encouraging wage growth numbers. It is unclear if this slowdown will be short-term or indicative of a longer-term trend. For now, analysts are watching closely to see how the labor market and the economy progress in the coming months.