Hickey Jobs Report Update October 2023
Employment growth continued the U.S. economy over the previous month, but at a slower pace than expected with the creation of 150,000 new jobs. Overall, the labor participation rate dropped as unemployment also rose to levels not seen since January 2022.
According to the latest U.S. Bureau of Labor Statistics Jobs Report, the biggest job gains for October 2023 were seen in Health Care, Government, and Social Assistance. Average hourly earnings for all employees on private nonfarm payrolls increased by 7 cents to $34.00, or 0.2 percent, resulting in a 4.1 percent increase over the past twelve months.
The primary labor market indicators derived from the household survey revealed a slight drop during the month. In October, the unemployment rate ticked up to 3.9 percent, with the number of unemployed individuals increased to 6.5 million with permanent job losers up by 164,000.
We’re tracking these latest updates, along with labor force participation rates, wage shifts, and inflationary concerns – here are the five things you need to know from the latest U.S. Jobs Report:
Missing market expectations, the U.S. economy only added 150,000 new workers in October. This was a sharp decrease from the previous month, which was +297,000, after further revisions in the latest Jobs Report.
The Health Care sector led all industries in job creation, adding 58,000 jobs, which is slightly above the monthly trend of +53,000 jobs over the past twelve months.
The average hourly earnings for all employees on private nonfarm payrolls increased by 7 cents, or 0.2 percent, to reach $34.00 in October. Looking back over the past twelve months, these earnings have increased by 4.1 percent, which has been slowly decreasing overall throughout 2023.
During the month, both the labor force participation rate at 62.7 percent and the employment-population ratio at 60.2 percent dropped from the previous month, indicating potential changes in workforce participation and employment among the working-age population.
Unemployment increased to 3.9 percent, the highest level seen since January 2022, showing a cooling winter jobs market.
For more information and insights on the latest U.S. Jobs Report, check the latest update from our Hickey Location Analytics and Incentives Team: Bureau of Labor Statistics Employment Situation Summary website.
Report Summary
According to the latest U.S. Jobs Report, during the month of October 2023, the economy missed expectations by adding only 150,000 jobs to Total Nonfarm Payroll employment, a figure that was significantly lower than the previous month.
During October, the most substantial employment increases were concentrated in several key sectors. Notably, these sectors included Health Care, Government, and Social Assistance. These areas demonstrated robust job gains during the reported month, reflecting their continued significance in driving employment growth within the U.S. economy.
The change in total nonfarm payroll employment for August was adjusted downwards by 62,000 jobs, from 227,000 to 165,000. Further, the change for September was also revised down by 39,000 jobs, from 336,000 to 297,000. These revisions indicate that the combined employment for August and September is now 101,000 jobs than the previous report.
The primary labor market indicators obtained from the survey of households exhibited slight negative fluctuations during the course of the month. Specifically, the unemployment rate remained increased to 3.9 percent throughout October, the highest level since January 2022. Of those added to the unemployed counts, permanent job losers increased by 146,000, while those under temporary layoff slightly changed.
In October, the average hourly earnings for all employees on private nonfarm payrolls rose by 7 cents, translating to a 0.2 percent increase, reaching a total of $34.00. When examining the past twelve months, these earnings have demonstrated a growth of 4.1 percent. This is a slight decrease over that period.
Over the course of the month, the labor force participation rate dropped to 62.7 percent and the employment-population ratio decreased to 60.2 percent, both reversing trends from the previous period.
Key Industries
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The Leisure and Hospitality sector, a dynamic industry since the onset of COVID-19, had an increase of 19,000 workers in October. Overall, this is a sharp decline from the average of 52,000 new jobs per month over the past twelve months.
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Health Care added another 58,000 jobs in October, outpacing the monthly trend of 53,000 new workers. Job growth in Health Care was notable across various areas, including Ambulatory Health Care services, which saw an increase of 32,000 jobs, Hospitals, which added 18,000 jobs, and Nursing and Residential Care Facilities, also contributing 8,000 jobs.
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Government employment increased by 51,000 jobs, returning to pre-pandemic job levels. Hiring in Local Government led the way for the sector with 38,000 jobs added in October.
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Social Assistance hiring increased by 19,000 jobs in October, which is just below the monthly average of 23,000 over the previous year. Family Services led the industry by adding 14,000 new workers.
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Transportation and Warehousing continued their up and down trend over the past year with a decrease in total employment of 12,000 jobs. Warehousing and Storage was the largest loser with 11,000 less workers, while Air Transportation was a positive light in adding 4,000 new jobs last month.
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In a positive sign for the wider economy, Construction increased employment by 23,000 workers over the previous month. Led by Specialty Trade Contractors and Building Construction, the industry outpaced the monthly average of 18,000 new workers.
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Primarily due to strike activity across the U.S., employment in the Manufacturing sector decreased by 35,000 workers. The Motor Vehicles and Parts sector was the largest contributor, with a loss of 33,000 jobs.
For more information on the latest Jobs Report, including additional details on the data concepts and statistical methodologies utilized, visit the Bureau of Labor Statistics Employment Situation Summary website.
If you are interested in learning more about the jobs reports, along with how we support our clients with dynamic labor analytics, we would be excited to connect one of our location strategy experts: