An unexpectedly small increase in unemployment in October was the only problem in a strong employment picture. According to the Bureau of Labor Statistics data,
In October, a significant number of new jobs were created and overall wages are up. In industries like manufacturing and health care, where there was previously little growth, hiring was more robust.
Investors reacted positively after the report was released, with the S&P 500 increasing more than 1% within minutes.
What workers should know about the most recent job numbers:
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October saw 261,000 new jobs, which was a slight decrease in growth compared to September’s (263,000).
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The unemployment rate rose to 3.7%, a 0.2 percentage points increase over September. The total number of people without work increased by 306,000 in the month to September. Since April, the unemployment rate fluctuated between 3.5% to 3.7%.
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Since last month, the labor force participation rate has barely changed: October’s reading was 62.2%, compared to September’s reading of 62.3%. The labor force participation ratio shows how many people are actively seeking work or who are currently working.
These are other key takeaways.
While earnings growth is slowing down, wages are still high. The average hourly earnings rose by 0.4% between September and October, a slight increase over the previous month (0.3%). The average wage is still 4% higher than it was a year ago.
The number of jobs in increased by 47,000 per month through 2022. This is a stark contrast with the 9,000 per month added in 2019
Manufacturing created 32,000 new jobs. This is a significant increase from the 30,000 per month in 2020.
The leisure and hospitality industry is growing but is still in decline. 35,000 more jobs were created for the leisure and hospitality industry.
Is there a job market that is still strong?
Job openings and the quit rate are two key indicators that show job seekers have many options. There were also few changes in the number of layoffs across all sectors. The rate has remained relatively constant from previous months.
A second report from the Bureau of Labor Statistics, the Job Openings Summary and Labor Turnover Summary (JOLTS), showed that job openings continued to rise in September, after a one month blip in August, when they fell by more than 1,000,000. Accommodation, food services, health care and social assistance were the most prominent areas where there was an increase in job openings. However, wholesale trade and finance as well as insurance are beginning to see fewer job openings.
JOLTS also reported that the quit rate was 2.7% for the third consecutive month. This, economists claim, is crucial in the health and well-being of the employment market. Quitting indicates workers feel comfortable making job changes.
State and local government jobs saw quit rates rise, which suggests that there is more movement in this sector. The reverse is true for three industries with lower quit rates: construction, transportation, warehousing, utilities, and durable goods manufacturing.
Also, wages are in the favor of workers: Another report published on Oct. 28 by Bureau of Labor Statistics showed that wages and salaries have increased 5.1% in a one year period ending September 2022. Wages and salaries increased by 4.2 %.
Although the overall picture of employment looks positive, many forecasts for 2023 predict job losses. The Federal Reserve forecasted that unemployment would rise to 4.4% next year in September. The Federal Reserve projects a higher unemployment rate of 5.5% span>
This week, the Federal Open Market Committee increased its federal funds rate to bring down inflation.
Opportunities in your field
If you are unsure if it is time to move, consider the current employment situation in your industry. Based on data from the Bureau of Labor Statistics over time, here’s what you should know:
Construction
October Employment: 7.7 Million.
% Change since September: +0.01%
% Change since February 2020: +0.98%
Education Services
October Employment: 3.9 Million
% Change since September: +0.22%.
% Change since February 2020: +0.55%
Financial activities
October Employment: 9 Million
% Change since September: +0.03%
% Change since February 2020: +1.37%
Government
October employment: 22.4 millions.
% Change since September: +0.13%
% Change since February 2020: -1.877%
Social assistance and health care
October employment: 20.9 millions.
% Change since September: +0.34%.
% Change since February 2020: +0.58%
Information
October Employment: 3 Million
% Change since September: +0.13%
% Change since February 2020: +5%
Lodging and leisure
October Employment: 15.9 Million.
% Change since September: +0.22%.
% Change since February 2020: 5.85%
Production
October Employment: 12.9 Million
% Change since September: +0.25%
% Change since February 2020: +0.47%
Mining Logging
October Employment: 634,000
% Change since September: No Change.
% Change since February 2020: 11.58%
Business and professional services
October employment: 22.5 millions.
% Change since September: +0.17%
% Change since February 2020: +4.28%
Retail Trade
October Employment: 15.8 Million.
% Change since September: +0.05%
% Change since February 2020: +1.08%
Transportation & warehousing
October Employment: 6.5 Million.
% Change since September: +0.13%
% Change since February 2020: +4.87%
Wholesale
October Employment: 5.9 Million.
% Change since September: +0.25%
% Change since February 2020: 0.222%.