US job growth cools in October to 150K while unemployment unexpectedly rises

U.S. job growth slowed more than expected in October, a sign the labor market is finally softening in the face of higher interest rates and stubborn inflation.

Employers added 150,000 jobs in October, the Labor Department said in its monthly payroll report released Friday, missing the 180,000 jobs forecast by Refinitiv economists. 

The unemployment rate, meanwhile, unexpectedly ticked up to 3.9% – the highest level in nearly two years.

The report also contained steep downward revisions to job growth at the end of the summer. Gains for August and September were revised down by a total of 101,000 jobs to a respective 165,000 and 297,000, the government said, suggesting that the labor market is weaker than it previously appeared.

WORKERS NOW DEMANDING NEARLY $80K TO START NEW JOB

“Winter cooling is hitting the labor market,” said Becky Frankiewicz, president and chief commercial officer of ManpowerGroup. “Employers and employees are hunkering down for cooler months with hiring solid yet stabilizing.”

Average hourly earnings — a key measure of inflation — increased 0.2% for the month and remain up 4.1% from the same time one year ago. Both figures came in below estimates, a welcome sign for the Fed.

PRIVATE SECTOR JOB GROWTH INCREASES LESS THAN EXPECTED IN OCTOBER: ADP

This is a developing story. Please check back for updates.