On November 1, 2024, the US Bureau of Labor Statistics reported that employers added only 12,000 jobs in October, marking the slowest growth since December 2020. This figure fell significantly short of the anticipated 100,000 jobs, with factors such as hurricanes and a prolonged strike at Boeing contributing to the downturn.
The unemployment rate remained steady at 4.1%, with approximately 7 million individuals unemployed. In comparison, the jobless rate was 3.8% and the number of unemployed was 6.4 million a year prior.
Hurricane Helene, which impacted Florida's Gulf Coast in late September, is estimated to have reduced payrolls by about 50,000 jobs. Additionally, the ongoing Boeing strike could lead to a further reduction of 41,000 jobs. While jobs in healthcare and government saw increases, temporary help services and manufacturing faced significant losses.
Average hourly earnings for nonfarm payroll employees rose by 0.4% to $35.46, reflecting a 4% increase over the past year. The previous month's job growth was revised down from 254,000 to 223,000, indicating a broader trend of economic slowing.
In response to the weak job numbers, US government debt rallied, with expectations mounting that the Federal Reserve will consider a quarter-point interest rate cut at its upcoming meeting on November 7, following the US elections. Treasury yields fell, particularly for two-year notes, as traders adjusted their forecasts based on the new employment data.
Consumer sentiment, however, showed signs of improvement, rising for the third consecutive month to its highest level since April, driven by easing interest rates that positively influenced consumer spending outlook.