According to a report by the US Bureau of Labor Statistics, 119,000 new jobs were created that exceeded the expectations. The report was originally scheduled for release on October 3 but was delayed due to the government shutdown.
The data shows that while employment was increasing before the shutdown, the overall labor market remained weak.
Sectors with the highest job growth included:
- Healthcare
- Restaurants and food services
- Social assistance
However, the manufacturing sector lost 6,000 jobs, a sector that the Trump administration had previously emphasized as central to its economic policies. Similarly, transportation and warehousing saw a loss of 25,300 jobs.
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Despite millions of new job opportunities, the unemployment rate rose slightly from 4.3% to 4.4% in September. This increase was due to 450,000 new entrants into the labor force.
The pace of wage growth has slowed, indicating another sign of economic weakness.
Private sector data has painted a concerning picture in the absence of official reports. In recent weeks, major companies have announced layoffs affecting thousands of employees, including Amazon, General Motors, IBM, Microsoft, Paramount, and others. Recently, Verizon announced the layoff of 13,000 employees, and in October, roughly 39,000 workers received termination notices.
Such large-scale layoffs were last seen in May or during previous economic crises, highlighting ongoing challenges in the US labor market.
