October Job Report Shows Slight Decrease in Job Gains

Why It Matters:

The report indicates a reduction in monthly job gains, aligning with the Federal Reserve's objective of achieving a "soft landing" in the economy to reduce inflation without a recession.

The Details:

• Non-farm payrolls increased by 150,000, below the consensus forecast of 170,000.

• The jobless rate rose slightly to 3.9 percent from the previous month's 3.8 percent.

• Average hourly wage rates rose 4.1 percent year-over-year, exceeding the increase in consumer prices.

• Worker wage rate gains since the pandemic began in 2020 are still trailing price gains.

• The report suggests a positive job market outlook, balancing inflation concerns with economic growth.

Conclusion:

The October job report reflects a slight decrease in job gains, aligning with the Federal Reserve's goal of a "soft landing" in the economy. Despite the rise in the jobless rate, average hourly wage rates have increased, providing workers with pay raises that outpace inflation.