U.S. job growth slowed more than expected in October, partly due to strikes by a union representing workers at the three largest automakers, which reduced manufacturing jobs, while wage inflation eased, indicating an easing in labor market conditions.
The Bureau of Labor Statistics of the US Department of Labor said on Friday in the closely followed jobs report that nonfarm payrolls increased by 150 thousand jobs last month. The September data was revised downwards to show the availability of 297 thousand jobs instead of 336 thousand previously.
Economists polled by Reuters had expected that jobs would increase by 180 thousand jobs. The economy needs to create about 100 thousand jobs a month to keep up with the increase in the working-age population.
Available jobs in manufacturing decreased by 35 thousand after increasing by 14 thousand in September. The Bureau of Labor Statistics reported last week that at least 30 thousand members of the trade union representing workers at car manufacturers took part in a strike at the time of the October job survey.
The strike ended with what may provide an increase in available jobs in November.
The average hourly wage increased 0.2 percent after recording a 0.3 percent increase in September. In the 12 months to October, wages rose 4.1 percent after rising 4.3 percent in September. The unemployment rate rose from 3.8% to 3.9 %.
The report may strengthen the expectations of the financial markets that the Federal Reserve (the US central bank) has completed the interest rate hikes for the current cycle.
