Unemployment rate held steady at 4.1% as expected.
Nonfarm payrolls added only 12,000 jobs, way below the forecast of 105,000.
Hurricanes and labor strikes (like Boeing) impacted these numbers significantly.
Fed chair Jerome Powell mentioned the central bank isn’t looking for further labor market cooling.
This jobs report raises the chances of a Fed rate cut this month—25 basis points is now a 98.8% probability, with a small chance of a 50 bp cut in November.
The target range for the federal funds rate could drop to 4.50%-4.75% if this cut happens.
This report came out just days before election day, adding weight to the economic outlook.
“Total nonfarm payroll employment was mostly flat in October (+12,000), with unemployment steady at 4.1%,” reported the U.S. Bureau of Labor Statistics. Health care and government jobs rose, but temporary services and manufacturing saw drops due to strike activity.
Andi said:
But how does this affect LeBron’s legacy?
Bronny and LeBron make the highest-scoring father-son duo in the league!
Actually, if you’re counting points scored as teammates, the highest duo is Kareem and Magic. Or maybe Kobe and Karl Malone if we’re talking about career points together.
the state of the economy is highly reflected in the jobs report
This doesn’t add up because payrolls were artificially affected by hurricanes and strikes. Also, over 500,000 workers said they had jobs but couldn’t work due to the storms or the strikes. Once recovery efforts get underway, we should see a bounce-back in construction and manufacturing.
Tan said:
If these are the numbers they want us to see, the revision in 6 weeks could be even worse.
Could you explain?
They often report initial job numbers that later get revised. Sometimes it feels like they’re inflated initially, only to be adjusted down when media attention fades.
@Gale
Like 14 out of the last 16 reports have been revised down after the initial hype. And yep, August and September just got quietly revised down too.
