US Job Growth Slows in October with 150,000 Positions Added, Unemployment Rate Rises to 3.9%

Slower job growth influenced by UAW strikes and a cooling wage inflation, despite weaker than expected results, experts and market strategists predict that the Federal Reserve is less likely to implement further interest rate hikes.

U.S. job growth dropped in October due to strikes by the United Auto Workers union against Detroit's top automakers, with inflation of wages also slowing. Nonfarm payrolls saw an increase of only 150,000 jobs, lower than the projected 180,000.
The unemployment rate rose slightly from 3.8% to 3.9%. Despite the slower growth, experts believe this is still a strong job creation number that aligns with the needs of the economy relative to population growth and stable unemployment rates.
The lower-than-definitive job growth, which was likely hampered further by the strikes, is playing into the hands of the Federal Reserve's ambitions to slow down the economy without increasing the unemployment rates any further.
Despite the cooling job market, the U.S. economy achieved GDP growth at a nearly 5% annualized pace in Q3. Economic growth was driven by a still-resilient labor market and higher income earners, which softened higher living costs.
The Federal Reserve's uphill battle against inflation has had an impact on the performance of the job market. However, an increase in wage growth is expected in November following the resolution of the auto workers' strikes.
In October 2023, the U.S. economy added 150,000 jobs, marking the lowest job growth since January 2021, but the unemployment rate remains relatively low. The Federal Reserve's attempts to cool down the economy are starting to see results.