The U.S. economy added 161,000 non-farm payroll positions in October, according to today’s monthly employment report released by the Bureau of Labor Statistics (BLS). This seasonally adjusted figure—a slight drop from September’s upwardly revised addition of 191,000 jobs—falls short of the Wall Street Journal’s expectation of 173,000. Economists say the slower job addition in October could be partially attributed to Hurricane Matthew, which left a dent on the economy in the Southeast, according to the Wall Street Journal.
The national unemployment rate was roughly stable at 4.9 percent, while the labor-force participation rate was little changed at 62.8 percent. Average hourly wages for private, non-farm workers continued to a rise to $25.92 in October, a 10-cent gain month-over-month, compared to the eight-cent increase in September. Dan North, chief economist at Euler Hermes North America, a trade credit insurance firm, told CNBC that the solid wage growth would possibly lead to a rate hike by the Federal Reserve in December, a move that has been expected by many economists.
After gaining 23,000 jobs in the previous month, the construction industry slowed a bit in October but still managed to add 11,000 payroll positions. The manufacturing sector continued to shed jobs, losing 9,000 jobs in October. Meanwhile, the architectural and engineering services sector gained 3,000 positions in October, its sixth consecutive month of growth.
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