The American economy creates only 12,000 jobs following the Boeing strike and the hurricanes which weigh on the labor market

The U.S. labor market added far fewer jobs than expected in October as weather disruptions and strikes weighed on the job market.

Bureau of Labor Statistics data released Friday showed the labor market added 12,000 jobs in October, fewer than the 100,000 economists expected.

Meanwhile, the unemployment rate remained steady at 4.1%, in part because of a difference in how the BLS collects data for that measure versus monthly job additions. Workers who had a job but were not earning money would not be counted as unemployed in the household survey, which is where the unemployment rate comes from. They would not be considered employed in the payroll survey, which is how job additions are compiled.

Job creation in October was well below the 223,000 created in September. Monthly job additions for August and September were also revised down by a total of 112,000.

“Ignore this first line [job additions]”, look at that 4.1%, and move on,” Joe Brusuelas, RSM's chief economist, told Yahoo Finance. He added: “It’s all just noise.”

Economists warned ahead of Friday's release that recent hurricanes and a strike by Boeing (BA) workers were weighing on labor market data for October. The BLS confirmed this was the case in its Friday release.

“It is likely that wage employment estimates in some sectors were affected by the hurricanes,” the BLS wrote in the press release. “However, it is not possible to quantify the net effect on the monthly change in national estimates of employment, hours or earnings because the establishment survey is not designed to isolate the effects of extreme weather events There was no discernible effect on the national unemployment rate from the household survey.

The BLS added that manufacturing jobs fell by 46,000 in October “largely due to strikes.”

Elsewhere in Friday's report, wage growth, an important measure for gauging inflationary pressures, rose to 4.1% year-on-year, compared with a 4% annual gain in September. On a monthly basis, wages increased by 0.4%, compared to a 0.3% increase in September. In addition, the activity rate fell to 62.6%, from 62.7%.

A construction worker stops for a breeze while taking a break from work under an American flag in Malibu on July 3, 2024. (Genaro Molina/Los Angeles Times via Getty Images) Genaro Molina via Getty Images

This report is the last major economic release before the Federal Reserve's next policy decision on November 7. Market expectations for this meeting changed little after the jobs report. As of Friday morning, markets were pricing in a roughly 99% chance that the Federal Reserve will cut interest rates by 25 basis points next week, up from a 95% chance seen a week ago, according to the tool CME FedWatch.

The story continues

Read more: What the Fed's rate cut means for bank accounts, CDs, loans and credit cards

Generally speaking, recent data, outside of the monthly jobs report, have shown a gradually cooling labor market. Data released Tuesday by the Bureau of Labor Statistics showed that job postings fell to their lowest level since January 2021 during the month of September. At the same time, the resignation rate, a sign of worker confidence, fell to 1.9% in September, from a revised 2% in August. This is the lowest resignation rate since June 2020.

The overall picture is that the labor market continues to calm (even beyond the effects of the hurricane), which should allow the Fed to maintain the pace of rate cuts in November and December. wrote Sonu Varghese, global macro strategist at the Carson Group, in a note Friday.

Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.

Click here for in-depth analysis of the latest stock market news and events that move stock prices.

Read the latest financial and business news from Yahoo Finance

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos