Job creation in the US economy slowed in October, confirming continued expectations for a decline and possibly easing pressure on the Federal Reserve in its efforts to control inflation.
Nonfarm payrolls rose by 150,000 for the month, according to a Labor Department report on Friday, compared with Dow Jones consensus expectations for an increase of 170,000.
The unemployment rate rose to 3.9%, against expectations that it would remain stable at 3.8%. Employment as measured in the household survey, which is used to calculate the unemployment rate, showed a decrease of 348,000 workers, while the number of unemployed people increased by 146,000.
The more inclusive unemployment rate that includes unmotivated workers and those holding part-time jobs for economic reasons rose to 7.2%, an increase of 0.2 percentage points.
"Winter is hitting the labor market," said Becky Frankiewicz, chief commercial officer of employment firm Manpower Group. "The post-pandemic and summer hiring crisis has eased and companies now have workers."
Average hourly earnings, a key measure of inflation, rose 0.2% for the month, less than the 0.3% expected, and 4.1% for the year was 0.1 percentage point above expectations.
The market reacted well to the report, with the stock market linked to the Dow Jones Industrial Average adding 100 points.
The US dollar index was down as much as 0.8% to trade at 105.157 against six major currencies.
In terms of sectors, healthcare led the way with 58,000 new jobs. Other major increases include government 51,000 jobs, job construction, and job social assistance. Recreation and hospitality, the main employer, also added 19,000 jobs.
Manufacturing posted a loss of 35,000, almost all due to the United Auto Workers strike. Transportation and storage saw a decrease of 12,000 jobs while information-related industries lost 9,000 jobs.
