U.S. nonfarm payrolls rose just 12,000 in October due to storms and strikes

The pace of hiring by U.S. companies slowed in October to its slowest pace since 2020, though the unemployment rate remained low in a month battered by severe hurricanes and massive strikes.

According to data released Friday by the Bureau of Labor Statistics, nonfarm payrolls increased by 12,000 last month, well below the monthly average over the past year. Figures for the previous two months were also revised down.

The unemployment rate stands at 4.1%, and average hourly earnings remain strong.

Economists had warned that the Boeing strike and the two powerful hurricanes that hit the Southeast in late September and early October would have a more negative impact on the nonfarm payrolls data than the unemployment survey showed.

As a result, economists' estimates for nonfarm payrolls vary widely, from a decline of 10,000 to an increase of 180,000.

Jared Bernstein, chairman of the Council of Economic Advisers, previously said the combined effects of hurricanes Helene and Milton, along with the shutdowns of Boeing workers and others, could result in as many as 100,000 fewer jobs.

The latest figure was significantly below consensus expectations of 120,000. That's the slowest pace of hiring since the end of 2020 and the slowest since Biden became president.

This is the last major piece of economic data before the presidential election. "Job growth is expected to rebound in November as recovery and rebuilding from the hurricanes continue," Biden said Friday. He also highlighted a new contract proposal for striking Boeing workers.

But former President Trump called the report "very embarrassing." Although the manufacturing sector has been hit hard by the strikes, he blamed the decline in manufacturing jobs on election rival Harris.