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News World Americas US politics US economy adds 261,000 jobs in October, unemployment rises to 3.7 per cent Labor force participation remains below pre-Covid-19 levels
Your support helps us to tell the story From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
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Your support makes all the difference. Read more The Bureau of Labor Statistics reported that the US economy added 261,000 nonfarm paryoll jobs in October, while the unemployment rate ticked up to 3.7 per cent.
The report is the last one before polls close on Tuesday for the US midterm elections. Voters have consistently listed the economy and inflation as the two top issues, with many voters blaming President Joe Biden.
The unemployment rate rose by 0.2 per cent. Adult women and white people saw their unemployment rates rise to 3.4 per cent and 3.2 per cent, respectively. The unemployment rate for adult men, teenagers, Black people, Asian-Americans and Hispanics remained virtually unchanged.
Mr Biden released a statement that gave a sunny portrayal of the numbers even as unemployment increased, saying how the economy added jobs every month of his administration.
“With jobs now added every single month of my presidency, a record setting 10 million job increase, a record 700,000 manufacturing jobs added which puts us at 137,000 more manufacturing jobs than we had before the pandemic, historically low Black and Hispanic unemployment rates, the gross domestic product increasing, and incomes on the way up, one thing is clear: while comments by Republican leadership sure seem to indicate they are rooting for a recession, the US economy continues to grow and add jobs even as gas prices continue to come down.,” he said in a statement.
At the same time, the labour force participation rate, which measures how many capable people are either working or looking for work, stayed at 62.2 percent. That is 1.2 per cent below the February 2020 number, the last one before the Covid-19 pandemic forced many businesses to close.
Health care employment grew the most, with 53,000 jobs, including 31,000 jobs in ambulatory health services; 11,000 in nursing and residential care services; and 11,000 in hospitals. Meanwhile, professional and technical services added 43,000 jobs and manufacturing added 32,000 jobs.
Hourly earnings in the last month grew by 0.4 per cent. Overall, hourly earnings increased by 4.7 per cent in the past 12 months.
On Tuesday, polls will close for the midterm elections. Republicans have sought to make the election a referendum about the economy and inflation, which has persisted.
Earlier this week, the Federal Reserve announced it would raise interest rates by 75 basis points as a means to curb inflation. Federal Reserve Chairman Jerome Powell cited that job growth remains positive in his statement.
“Reducing inflation is likely to require a sustained period of below-trend growth and some softening of labor market conditions,” he said. “Restoring price stability is essential to set the stage for achieving maximum employment and stable prices in the longer run.”
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