The Bureau of Labor Statistics (BLS) reports that U.S. employers expanded payrolls by 12,000 jobs last month. That figure is well below economists’ projections of about 100,000 jobs, and it partly reflects the impacts on the labor market of Hurricanes Helene and Milton and two major strikes in the manufacturing sector.
The October jobs report also notes that employers added 112,000 fewer jobs than previously reported for August and September combined.
Despite the slower pace of hiring in October, the national unemployment rate was unchanged from September: 4.1%.
The unemployment rate for college-degreed professionals who are 25 or older — the workers most highly sought-after by many employers — continues to trend well below the national average. It was 2.5% in October, up from 2.1% the previous month.
Meanwhile, other BLS data shows many highly skilled jobs in accounting and finance, technology, legal, marketing and creative and administrative services have even lower unemployment rates, indicating the market remains tight for specialized roles.
Employers in private education and health services led the way in payroll expansion last month, adding 57,000 jobs. The government sector also experienced solid job growth, adding 40,000 jobs.
Other industries that saw notable hiring last month, according to the latest jobs report, are wholesale trade (+10,400), construction (+8,000) and information (+3,000).
The BLS reports that industries experiencing payroll contraction last month included professional and business services (-47,000) and manufacturing (-46,000).
While many employers are working with tighter budgets and taking a measured approach to decision-making, including when hiring employees, business confidence is rising, supported by ongoing progress on inflation and the start of a global rate-cutting cycle. With lower inflation and anticipation of further interest rate cuts, the NFIB’s Small Business Optimism Index has been trending up.
However, the NFIB’s Uncertainty Index is also up as employers await the result of the upcoming U.S. presidential election. Many economists expect the market to improve once the election is decided, which could lead to greater hiring urgency, resumed growth initiatives and more normalized labor churn.
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Separate data from the BLS also highlights employers’ ongoing challenges to hire skilled talent. In its latest Job Openings and Labor Turnover Survey (JOLTS), the BLS reports that 7.4 million jobs in the United States were waiting to be staffed at the end of September. That figure is down only slightly from the 8 million open roles reported in August.
The rapid rise of AI use in the workplace is one factor having an impact on hiring. In a recent Robert Half survey, more than half (54%) of hiring managers said that advancements in AI and automation are reshaping needed skill sets. Additionally, 37% of managers said they need to bring in contract talent to support their organization’s AI-related projects.
Need to hire talent for your AI initiatives, or to meet seasonal hiring demands? Contact us.
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