The economy US labor market weakens - hurricanes and strike distort the picture
The situation on the US labor market has deteriorated due to the effects of tropical hurricanes and a strike. While the unemployment rate remained at 4.1 percent in October, significantly fewer new jobs were created.
01.11.2024, 14:59
SDA
Compared to the previous month, there were only 12,000 new jobs, according to the US Department of Labor. According to revised data, 223,000 new jobs were created in September.
Employment growth in the largest economy in September and August was also revised significantly downwards, by a total of 112,000 jobs.
In the month under review, severe storms in parts of the USA and strike action had had a negative impact. According to Dekabank, the significance of the labor market report is lower than usual due to distortions caused by storms and the strike at Boeing.
Thomas Gitzel, Chief Economist at VP Bank, said that if the special effects are factored out, job creation remains robust. Wage development was therefore better than expected. In a monthly comparison, wages rose by 0.4 percent in October. The labor market data is considered to be decisive for the Fed's monetary policy.
