The United States labour market nearly ground to a halt in October, hit hard by aerospace strikes and hurricane disruptions.
Nonfarm payrolls (NFPs) increased by only 12,000, a stark contrast to September's revised gain of 223,000 and well below the expected 113,000.
The U.S. Bureau of Labor Statistics (BLS) noted the impact of Hurricanes Helene and Milton, which battered the southeast and affected data collection periods.
Strikes in the aerospace industry also led to a loss of 46,000 manufacturing jobs, contributing to the sluggish growth.
The unemployment rate remained steady at 4.1%, but the labour force participation rate dipped slightly to 62.6%.
Average hourly earnings saw a modest increase, with wage inflation ticking up to 4% from 3.9%.
The NFP data, a key indicator of consumer spending, suggests a potential slowdown in economic activity.
BLS explained, "It is likely that payroll employment estimates in some industries were affected by the hurricanes; however, it is not possible to quantify the net effect on the over-the-month change in national employment, hours, or earnings estimates because the establishment survey is not designed to isolate effects from extreme weather events."
"There was no discernible effect on the national unemployment rate from the household survey," the BLS added.
The disappointing job creation figures had an immediate impact on the U.S. Dollar Index, which fell by 0.1% to 103.80.
As consumer spending remains a crucial driver of the U.S. economy, these numbers raise concerns about the pace of recovery amid ongoing challenges.
