October US Jobs Report: 12,000 Rise in Payrolls, Likely Depressed by Hurricanes

The US economy added 12,000 jobs in October, according to the latest report from the Bureau of Labor Statistics.

The government’s report revised down previous estimates for new job creation in September and August.

The unemployment rate held steady at 4.1%.

The gain in payrolls was well below the consensus estimate. According to FactSet, economists predicted the economy added 120,000 jobs in October, a steep drop from the originally reported 254,000 increase in September. Meanwhile, the unemployment rate was forecast to remain unchanged at 4.1%.

The BLS said job growth was likely depressed by the two hurricanes that hit the southeast in October. In addition, strike activity was a detractor.

“It is likely that payroll employment estimates in some industries were affected by the hurricanes; however, it is not possible to quantify the net effect on the over-the-month change in national employment, hours, or earnings estimates because the establishment survey is not designed to isolate effects from extreme weather events,” read the report. “There was no discernible effect on the national unemployment rate from the household survey.”

October Jobs Report Key Stats

• Total nonfarm payrolls grew by 12,000 vs. a downward-revised 223,000 in September.
• The unemployment rate held steady at 4.1%.
• Average hourly wages grew by 0.4% to $35.46 after rising 0.3% in September.

In October, average hourly wages increased by 13 cents, or 0.4%, to $35.46. Over the past 12 months, average hourly earnings have risen 4%.

The average workweek for all employees on private nonfarm payrolls was unchanged at 34.3. For manufacturing employees, the average workweek fell to 40 hours, and overtime was unchanged at 3 hours. For production and nonsupervisory employees, the average workweek shortened to 33.7 hours from 34.1 the prior month.