The jobs report was released showing a significant decrease in job growth. The data attributes this dip to two hurricanes that took place in October, as well as an ongoing strike among Boeing employees.
Some indicators point to strength in the labor market beyond the reported job growth numbers.
Here are some of the key takeaways:
- 12,000 jobs were added in October
- Unemployment remained unchanged at 4.1%
- Workforce participation dipped slightly from 62.7% to 62.6%
- Wage growth increased by 0.4% month over month—the same increase as last month
Below, we dive into the latest labor market trends and what this means for employers.
Number of Jobs Available
Job gains for October came in well below expectations, with just 12,000 jobs added, falling short of the projected 100,000.
Economists attribute much of the shortfall to the impact of Hurricane Helene, Hurricane Milton, and the recent Boeing strikes, events they believe collectively accounted for up to 100,000 lost jobs. Job gains for August and September were also revised downward by a combined 112,000.
Leading industries in job growth included health care, which added 52,000 jobs, while government employment continued its steady growth with an increase of 40,000 jobs. Construction employment remained relatively unchanged, adding 8,000 positions.
Unemployment
The unemployment rate remained steady at 4.1% in October, a sign of continued resilience in the labor market despite the low reported job growth numbers.
Due to the ongoing Boeing strikes, manufacturing lost 46,000 jobs. And professional and business services saw a decline of 49,000.
According to latest JOLTS report, which shows data for September, job openings dropped to 7.4 million from 7.9 million in August. Despite healthcare and government typically being leading industries in job growth, both industries saw a reduction in openings of 178,000 and 107,000, respectively
Wage Growth and Workforce Participation
Wage growth and workforce participation have remained unchanged or changed little. Workforce participation slightly dipped from 62.7% to 62.6%. And wage growth increased by 4% month over month in October, the same increase seen in the September jobs report.
The data shows little change in the job market indicators for October.
Winning Moves for Employers
Looking to stay competitive in today’s labor market? Here are key strategies to help you attract top talent, retain skilled workers, and keep operations running smoothly.
- Highlight stability in uncertain times: With the recent dip in job growth and ongoing strikes in sectors like manufacturing, offering a stable, dependable work environment can be a strong selling point. Emphasize company stability, consistent hours, and clear paths to growth in your recruitment messaging to appeal to job seekers looking for security.
- Align wages with market trends: To attract top talent, ensure your pay rates align with or exceed industry benchmarks, especially as more candidates consider compensation a key deciding factor.
- Prioritize retention initiatives: Develop programs that support career growth, skill development, and workplace satisfaction to reduce turnover, including training and cross-functional opportunities for employees to diversify their skills.
- Utilize flexible staffing to meet demand: Temporary staffing can be a great solution to maintain production and meet deadlines. A flexible workforce can be particularly valuable in addressing fluctuations due to external factors like strikes or supply chain disruptions.
Interested in more resources? Check out our employer resource center for an archive of on-demand HR webinars, tools and articles to help you address a variety of workplace challenges.
For additional insights into market trends, or if you need staffing support, contact us.
