October jobs take a hit from hurricanes, strike

U.S. payrolls slumped sharply in October, weighed down by people not working as a result of two hurricanes and major labor disputes. 

The U.S. added just 12,000 in October, well below economists’ estimate of 100,000, marking the slowest month for hiring since December 2020.

Unemployment held steady at 4.1%. The lackluster report reflects a dent in hiring attributed to Hurricanes Milton and Helene, and the Boeing machinists strike, which temporarily prevented some people from working in Florida and North Carolina. 

It’s the last jobs report to be released before Election Day Tuesday. Economists say this month’s report is less informative than others due to noise caused by the storms and two major strikes.

“These jobs will likely rebound quickly and add to job growth numbers in coming months,” Economic Policy Institute chief economist Josh Bivens wrote in a research note. 

Analysts underlined the distorted nature of the report, and cautioned that it doesn’t accurately reflect the strength of the current job market. 

“The pace of job creation was skewed by the devastating effects of Hurricane Milton and Helene, then distorted further by obstacles presented by major employee strikes where manufacturing took a hit,” Eric Roberts, CEO USA of Fiera Capital said in a research note. “The extent of both has yet to be fully reflected in the economy with potential shock waves over the next few months. These events make it more difficult to obtain an accurate snapshot of labor market data ahead of the election next week.”