Job growth in the United States experienced a notable slowdown in October, with only 12,000 new positions added, falling significantly short of economists' expectations of 100,000. This decline highlights the impact of recent hurricanes and a strike at Boeing on the job market.
The landfall of hurricanes Milton and Helene severely affected employment in Florida and the Southeast region of the United States, resulting in a substantial reduction in job opportunities.
Additionally, the strike at Boeing (BA, Financial) contributed to the negative employment numbers, as the work stoppage of 33,000 employees had a direct effect on job statistics.
Despite the slowdown in job growth, the unemployment rate remains steady at 4.1%, suggesting that the labor market's fundamentals are still robust.
The stable unemployment rate can be attributed to the manner in which household surveys are conducted, where striking workers are counted as employed and those unable to work due to adverse weather are reported as "employed but not working."
Economists anticipate that considering these factors, the Federal Reserve might proceed with a 25 basis point interest rate cut next week to address the current economic conditions.
