Just 150,000 new jobs were added by employers in the US last month as the economy stagnated due to strikes and high interest rates.
Due in part to the less substantial gains than anticipated, the jobless rate increased from 3.8% in September to 3.9%.
According to the Labour Department data, there may be an end to America’s prolonged period of higher-than-expected job growth.
Since last year, the US central bank has increased interest rates significantly in an effort to calm the market and stabilise prices.
But despite increasing borrowing prices, the labour economy had held up far better than anticipated.
Employers have added more than 250,000 jobs every month on average throughout the past year.
October was the worst month for employment growth since June, and salary increases also decreased.
The average hourly wage has climbed by 4.1% in the last 12 months.
The improvements in October were driven by hiring by the government and healthcare companies.
According to the Labour Department, there was a about 35,000 decrease in manufacturing jobs, of which roughly 33,000 were a result of the United Auto Workers union’s significant strike.
According to Richard Carter, head of fixed interest research at Quilter Cheviot, “the US economy is finally showing signs that cracks are appearing in what has been a formidable facade,” following a string of robust and strong data prints.
“For now, things are okay, but further weakening of the labour market may just start to turn that perception more negative.”
According to analysts, the Federal Reserve will feel less pressure to raise interest rates if the job market cools off.
The likelihood of there being no change in December is increased by this jobs report, according to Principal Asset Management’s chief global strategist Seema Shah.
