Better-than-expected job growth in October and unemployment plummeted even as the United States faces the challenge of rising coronavirus infections and their impact on a premature economic recovery. young.
The Labor Department reported on Friday that nonfarm payrolls increased by 638,000 and the unemployment rate stood at 6.9%. Economists surveyed by Dow Jones looked for a wage increase of 530,000 and an unemployment rate of 7.7%, slightly lower than September’s 7.9%.
October̵7;s increase was only slightly lower than September’s rate of 672,000.
The declining unemployment rate was positive as the labor force participation rate increased by 0.3 percentage points to 61.7%. An alternative that included discouraged workers and those working part-time for economic reasons also dropped to 12.1% from 12.8% a month ago.
The household survey found employment growth even stronger, with total employment increasing by 2.24 million and the employment-to-population ratio rising 0.8 percentage points to 57.4 %. The household survey also showed that the total number of unemployed people decreased by 1.52 million and decreased by 541,000 who did not participate in the labor force.
Markets reacted somewhat positively to the news, with Dow futures clearing most of their previous losses.
The report comes as the United States this week broke the 100,000-per-day barrier that pushed hospitalization and death rates up.
With Federal Reserve officials emphasizing the link between viruses and economic growth, the United States will face challenging months ahead.
October’s growth brought the total payroll growth since May to around 12 million, although that still left around 10 million positions lost in March and April.
The biggest job growth came in the sector worst hit during the pandemic, when hospitality and leisure activity rose 271,000. Of that total, bars and restaurants increased by 192,000.
Professional and business services increased by 208,000 and retail sales increased 104,000, mainly in electronics and equipment stores, up 31,000.
Construction also saw good gains, up 84,000, while transportation and warehousing rose 63,000 and manufacturing up 83,000, though the sector was still below pre-pandemic levels.
October’s increase was even better without the loss of 147,000 workers in the Census that contributed to the overall reduction of 268,000 government jobs.
The increase in previous months has a slight increase, with August increasing by 4,000 to 1,493 million and in September by 11,000 to 672,000.
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