On Friday, the Labor Department released the job report for October and said that 261,000 jobs had been added, indicating that the economy remained resilient. Despite higher interest rates, jobs remained robust and defied economists estimates of 200,000 in October. This final glimpse of the labor market before the midterms is expected to be used by both the national parties, in their closing pitch. President Joe Biden has already welcomed the strong jobs report. Major U.S. stock indexes also rose, after the jobs report was released.
President Joe Biden celebrated the jobs gains and said, “We’re going to do what it takes to bring inflation down. But as long as I’m president, I’m not going to accept an argument that the problem is that too many Americans are finding good jobs.”
This year, the economy has added 407,000 jobs, on an average, every month while the increase in monthly jobs in 2021 was 562,000. Although there have been gains in October, there is a slight rise in unemployment rates which stands at 3.7 percent. Data from the Bureau of Labor Statistics said that unemployment has remained at a narrow range between 3.5 and 3.7 percent from March.
October jobs saw gains across the following sectors:
professional and technical services
leisure and hospitality jobs.
Sectors that reported no monthly increases included construction and retail.
Wages have also increased and this has helped workers but consumer spending has become cautious due to inflation. Average hourly earnings rose by 4.7 percent which is well below the inflation rate.
The labor market is gradually softening but not as much as predictions by economists after the Federal Reserve’s aggressive campaign to raise interest rates to control inflation. The strong labor market proves the resilience of the overall economy in the U.S.
The Federal Reserve has aggressively increased interest rates. On Wednesday, the Fed announced another increase, which was the sixth increase in the year. The next increase might not be as aggressive, according to some.
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