U.S. employers added 261,000 jobs in October, beating analyst expectations. The growth came despite rising interest rates aimed at slowing the job market. The unemployment rate rose to 3.7%. Year-over-year wage growth dropped to 4.7%.
261,000: Employers added 261,000 jobs to the U.S. economy in October.
3.7%: The unemployment rate rose to 3.7%.
4.7%: Wages grew 4.7% over the past year.
The 261,000 jobs added in October demonstrate continued resilience in the U.S. economy, according to the Wall Street Journal. Healthcare and education and business and professional services led the growth. While the leisure and hospitality sector has dropped back from the extremely high jobs numbers we saw during the Great Rehire, there is still sustained growth, led by hotels and other accommodations.
Like last month, the bad news in October’s jobs report would look like good news at almost any other point. Job growth is strong, but as MarketWatch reports, the strong growth means the current labor shortages are not going anywhere. The Federal Reserve has been aggressively raising interest rates in the hopes of slowing the job market. The current labor shortages are driving higher wages, contributing to inflation. In fact, Fed Chairman Jerome Powell said the labor market is “out of balance” because there are too many job openings and not enough job seekers to fill them.
As the New York Times reports, the Federal Reserve is watching these jobs numbers closely, and October’s report suggests that they will be likely to raise rates again. Their next decision is scheduled for December 14. The fact that both hiring and wage growth have cooled slightly shows movement in the right direction, but experts say that it is still happening too slowly. Job postings actually rose again in September after falling in August, demonstrating the stubborn resilience of the job market.