OAN’s James Meyers
11:46 AM – Friday, November 3, 2023
In the latest job reporting for the month of October, the United States economy saw job creation decrease.
The Labor Department announced on Friday, that Nonfarm payrolls increased by 150,000 for October, which is less than the expected Dow Jones estimation of 170,000. That was a significant decline from the gain of 297,000 in September.
The report also showed the unemployment rate increased to 3.9%, which was higher than the expectations of staying at 3.8%.
However, economists still believe the country’s economy can stay resilient despite the high percentage of inflation across the nation.
“The nation’s economy is still resilient despite rapid and appreciable tightening of financial conditions,” Selma Hepp, chief economist at CoreLogic, said in an emailed statement. “Going forward, moderation of job gains is expected though the imbalance between labor supply and demand suggests wage growth will take more time to loosen up.”
Manufacturing jobs decreased by 35,000 last month, which experts believe is attributed to the now-ended United Auto Workers Strike.
“We expect the labor market to soften and economic activity to slow over time in response to a restrictive policy stance. In terms of Fed policy, our base case remains that rates are at a peak and policy will remain restrictive for some time until inflation moves convincingly towards target,” Rubeela Farooqi, chief U.S. economist at High Frequency Economics, stated.
Meanwhile, markets reacted positively to the latest report, with futures tied to the Dow Jones Industrial Average adding 100 points.
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