U.S. Job Growth Slows Amid Strikes and Storms Ahead of Election

U.S. job growth nearly stalled in October due to strikes and hurricanes, complicating labor market analysis before the presidential election. Nonfarm payrolls increased by just 12,000, with most new jobs in healthcare and government sectors. Economists expect a Federal Reserve rate cut despite employment data uncertainties.

October saw a sharp slowdown in U.S. job growth, largely stifled by industry strikes and hurricane disruptions, as the nation braces for its presidential election. This sluggish labor market recovery adds complexity for voters evaluating economic conditions under Democratic Vice President Kamala Harris or Republican former President Donald Trump.

The latest Labor Department report indicates the smallest nonfarm payroll increase since December 2020, with only 12,000 new jobs. Strikes by aerospace machinists and storm impacts muddied data collection, highlighting 512,000 weather-related work absences. The healthcare and government sectors were bright spots, adding a combined 92,000 positions.

Despite these challenges, unemployment remained at 4.1%. Meanwhile, the Federal Reserve contemplates further interest rate adjustments as wage gains persist. October's employment news stirred financial markets, pushing U.S. stocks higher as the dollar fell against other currencies.

(With inputs from agencies.)