150K October U.S. Payrolls Rise, Missing Predictions

U.S. payrolls increased by 150,000 in October, less than expected, according to the U.S. Bureau of Labor Statistics. The figure came in lower than the consensus estimate of 160,000, the lowest since September. The October payrolls report was seen as a surprise, despite a string of positive economic news in recent months. The unemployment rate dropped to 7.9% in October, signaling an improvement in the US job market. The October payrolls figure came in lower than expected, however, with much of the gains seen in leisure and hospitality, education and health services. In contrast, jobs in the manufacturing, transportation and warehousing sector saw no growth. The news was not all bad, however. Average earnings rose by 0.4%, which could indicate that the labor market is improving. The data also showed the number of Americans unemployed for more than 27 weeks fell by 243,000, signalling an increase in job opportunities. With the announcement of the lower-than-expected payrolls figure in October, the focus now shifts to whether the economy can continue to generate jobs at the same pace. With millions of Americans still out of work and the pandemic still causing disruptions, analysts are uncertain about how 2021 will shape up in terms of job growth. Nevertheless, the easing of restrictions in some areas and the continued development of Covid-19 vaccines have provided some much needed hope, raising expectations for a strong recovery next year.