US Nonfarm Payrolls of October Fall Short of Projections

US Nonfarm Payrolls report been released by The U.S. Bureau of Labor Statistics. Rrevealing that in the month of October, total nonfarm payroll employment experienced an increase of 150,000. While the unemployment rate remained relatively stable at 3.9 percent. Noteworthy employment gains were observed in the healthcare, government, and social assistance sectors. While the manufacturing industry saw a decline in employment due to labor strikes.

US Nonfarm Payrolls: Minor Fluctuations and Key Metrics

In October, both the unemployment rate, holding steady at 3.9 percent. The count of unemployed individuals, totaling 6.5 million, underwent minimal changes. However, it’s worth noting that these metrics have experienced an uptick of 0.5 percentage points and 849,000 individuals, respectively, since their recent lows in April.

Across different demographic groups, the unemployment rates for Men (3.7 percent). Women with (3.3 percent), teenagers (13.2 percent). Also Whites (3.5 percent) and Blacks (5.8 percent), Asians (3.1 percent). And Hispanics (4.8 percent) exhibited minor fluctuations in October.

The number of permanent job losses among the unemployed increased by 164,000 individuals during the month. Reaching a total of 1.6 million. While the number of persons on temporary layoff remained relatively stable at 873,000.

October 2023 Labor Market Trends: Long-Term Unemployment and Workforce Dynamics

In October, the number of long-term unemployed individuals (those jobless for 27 weeks or longer) showed little change at 1.3 million. Representing 19.8 percent of all unemployed persons.

The labor force participation rate, at 62.7 percent, and the employment-population ratio, at 60.2 percent, remained largely constant during October.

The number of individuals employed part-time for economic reasons, totaling 4.3 million, experienced only marginal shifts in October. These individuals, desiring full-time employment but working part-time due to reduced hours or the inability to secure full-time positions.

Also Read: Today in Forex: USD Awaits Impact of October Jobs Report

In October, the number of individuals not participating in the labor force but seeking employment stood at 5.4 million, showing minor fluctuations compared to the previous month. These individuals were not classified as unemployed because they either were not actively seeking work in the four weeks before the survey or were unavailable to accept a job.

Among those not participating in the labor force but aspiring to secure employment, the number of marginally attached individuals exhibited little change at 1.4 million in October. These individuals were ready and available for work and had sought employment within the previous 12 months but had not actively looked for work in the four weeks leading up to the survey. The number of discouraged workers, a subgroup of the marginally attached individuals who believed that no suitable job opportunities were available, also remained relatively stable at 416,000.

October Nonfarm Payroll Report: Key Sector Highlights and Trends

In October, nonfarm payrolls increased by 150,000, falling below the 12-month average of 258,000. Key sector-specific highlights include:
Healthcare added 58,000 jobs, consistent with the average of 53,000 per month. With gains in ambulatory health care services, hospitals, and nursing and residential care facilities.
Government employment rose by 51,000, reaching pre-pandemic levels from February 2020, driven by local government job growth (+38,000).
Social assistance saw an increase of 19,000 jobs, slightly below the 12-month average of 23,000, particularly in individual and family services.
Construction employment continued to rise, with a gain of 23,000 jobs in October, aligning with the 12-month average of 18,000, propelled by specialty trade contractors and construction of buildings.
Conversely, manufacturing employment declined by 35,000 jobs in October, with a substantial drop of 33,000 jobs in motor vehicles and parts, primarily due to labor strikes.
Leisure and hospitality employment remained relatively unchanged in October (+19,000). That despite having added an average of 52,000 jobs per month over the past year.

October 2023 Nonfarm Payrolls and Sector-Specific Employment Trends

In October, not many new jobs were added in professional and business services, only 15,000, and things didn’t change much since May. Temporary help services saw a small increase of 7,000 jobs during the month but were still 229,000 jobs lower than their highest point in March 2022.

In the transportation and warehousing sector, there were some minor fluctuations in October, with a decrease of 12,000 jobs. Over the year, there wasn’t much change overall. Warehousing and storage lost 11,000 jobs, but air transportation gained 4,000 jobs.

In the information sector, not many changes happened in October, with a decrease of 9,000 jobs. The motion picture and sound recording industry continued to lose jobs, down 5,000, which is a total of 44,000 jobs lost since May, partly because of an ongoing labor dispute.

In other major industries, like mining, wholesale trade, retail trade, financial activities, and other services, there wasn’t much change in employment in October.

Average hourly earnings for all employees increased by 7 cents (0.2%) in October, reaching $34.00. Over the past year, they went up by 4.1%. For private-sector production and nonsupervisory employees, average hourly earnings increased by 10 cents (0.3%) to $29.19.

October 2023 Labor Market Insights: Workweek Changes and Data Revisions

The average workweek for all employees decreased by 0.1 hour to 34.3 hours in October. In the manufacturing sector, the average workweek stayed mostly the same at 40.0 hours, but overtime decreased by 0.1 hour to 2.9 hours. For production and nonsupervisory employees in the private sector, the average workweek decreased by 0.1 hour to 33.7 hours.

It’s important to know that the data for August and September has been revised. In August, there were 62,000 fewer jobs than previously reported, and in September, there were 39,000 fewer jobs. This happened because of additional reports from businesses and government agencies and recalibrations in seasonal factors.

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