U.S. economy adds just 12,000 jobs in October, much fewer than expected

By Dan McCaleb
The Center Square

The U.S. economy added 12,000 jobs in October, far fewer than expected and the lowest monthly total since December 2020.

With the election just days away, it's unclear how Friday's report from the U.S. Bureau of Labor will impact voting.

"Total nonfarm payroll employment was essentially unchanged in October (+12,000), and the unemployment rate was unchanged at 4.1 percent," the bureau said.  "Employment continued to trend up in health care and government. Temporary help services lost jobs. Employment declined in manufacturing due to strike activity."

The economy and inflation have been the top issue on voters minds all year, according to most polls, including The Center Square Voters' Voice poll in October.

"Job additions in October were light, with only a 12,000 net gain, but this could partly be attributed to a special one-time factor — the impact of recent hurricanes," National Association of REALTORS® Chief Economist Lawrence Yun said in a statement. "However, the fact that job figures were revised lower in the prior two months, by a 112,000 in sum, clearly hints at a slowdown in the economy."

The bureau noted that government job growth continued to rise.

"Employment in government continued its upward trend in October (+40,000), similar to the average monthly gain of 43,000 over the prior 12 months," the bureau said. "Over the month, employment continued to trend up in state government (+18,000)."