The monthly labor market report in the United States provided a less robust view than expected at the end of a presidential campaign focused on voters' economic concerns. In October, only 12,000 jobs were added, a substantially lower figure than the 223,000 jobs created in September. Despite this data, employers in the healthcare sector added 52,000 jobs, while state and local governments added 39,000 jobs.
The report also revised down the job gains in August and September by a combined total of 112,000, indicating that the labor market was not as strong as initially thought. Economists have mentioned that the U.S. economy remains firm compared to other developed countries and has remained resilient despite the pressure from high interest rates.
Sarah House, senior economist at Wells Fargo, pointed out that the U.S. labor market still shows signs of cooling. Although the unemployment rate is low and the number of people seeking unemployment assistance is low, citizens continue to enjoy an unusual job stability.
On the other hand, the U.S. economy expanded at an annual rate of 2.8% in the last quarter, driven by consumer spending. However, in the midst of the election between presidential candidates Donald Trump and Kamala Harris, many citizens have expressed their dissatisfaction with the country's economic situation.
The report also showed that strikes and hurricanes affected job creation in October. Factories lost 46,000 jobs, and temporary employment agencies also experienced a drop of 49,000 jobs. It is estimated that due to these factors, as many as 100,000 jobs could have been lost during the month.
At the same time, despite the decline in demand for temporary jobs, employers have found some relief in hiring staff, which has eased the pressure on wage increases. Although difficulties in finding qualified workers in certain areas persist, especially in technical sectors, as mentioned by Jon Abt, co-president of Abt Electronics.
In conclusion, although the U.S. labor market is going through a cooling period and specific challenges, it remains in a stable position. The expectation of interest rate cuts by the Federal Reserve indicates that there is an effort to maintain economic balance and overcome current obstacles.
