Jobs Growth Slows for the Month of October
- Author: Jessica Williams
- Posted: 2024-10-13
In a report from the United States Department of Labor on November 6, government officials reported that the American economy added 638,000 jobs in October. This is a sign that the recovery is slowing. Earlier in the summer, the rate of job growth was faster. The growth in COVID-19 cases over the past few weeks has authorities worried about whether or not the recovery could continue.
Where the Unemployment Rate Stands
The national unemployment rate fell from 7.9% in September to 6.9% in October. About 11 million people are still jobless. These are individuals actively seeking employment and who reported that they lost their jobs as a result of the COVID-19 pandemic. This is about twice the number of unemployed people from February, which was before the World Health Organization made its declaration of a pandemic.
Small Monthly Gain in Jobs
The jobs added number was the smallest one since May. The month of May was when the economy started adding back some of the tens of millions of jobs that were lost during the first two months of the COVID-19 pandemic. After a modest improvement on economists' expectations, many were disappointed in the overall number. October was also when the 147,000 temporary Census jobs ended. The federal government ordered an end to Census activities in late October.
Drop in Unemployment Rate
One economist at Glass Door was excited by the news. He said that the unemployment rate dropped more than what people thought it would. This happened right after an increase in the labor force and no additional permanent layoffs. He thought that the jobs report was a positive one, but he did admit that the pandemic continues to be a huge concern because the spread of the virus causing COVID-19 is not at all controlled in the United States.
No Certain Path in Jobs Recovery
The economist also reported that today's good news is not a guarantee of a forward trajectory in jobs recovery. The gains that did occur were in hard-hit industries like hospitality and leisure. They accounted for 271,000 of the regained jobs. Food service, bars and restaurants added 192,000 jobs. Retail added 104,000 jobs, and the arts, entertainment and recreation industries had modest gains of a total of 44,000 jobs.
Unemployment in Hard-hit Industries Is Still Low
Employment levels in hospitality, leisure, food service, restaurants, bars, arts and entertainment is still down by more than 500,000 jobs. Healthcare and social services are down by 950,000 jobs. Manufacturing is 621,000 jobs down since February. Government lost the most jobs for the month. Those 147,000 temporary Census worker jobs were an expected loss.
Vulnerable Industries Are Still At Risk
An economist in Washington says that there are still concerns about the vulnerable industries. They only had modest gains in jobs. The COVID-19 pandemic is worse than ever in the United States, with case counts exceeding 100,000 on November 4 and 5. If state governors order more closures, any gains of jobs will quickly be lost again.
Winter Is Coming
Presidential hopeful Joe Biden has already warned Americans that tough times could be ahead if the government does not act quickly on the COVID-19 pandemic. The pandemic has exacerbated income inequality. The American economy as a whole has recovered only two-thirds of what it lost during the first half of 2020. With no clear winner of the presidential election as of Friday, November 6, the recovery continues to hang in the balance. More than 21 million people are still drawing unemployment benefits. Congress has yet to pass any additional COVID-19 relief measures. The number of people who have been out of work for more than six months went up from 2 million to 3.6 million.
People Are Still Struggling
The loss of jobs fell along racial and gender lines. More people of color lost jobs, and more women have lost jobs. Many women have quit their jobs in order to stay home with children who have no choice but to do remote learning. The unemployment rate of whites is 6%, but it is 10.8% for blacks. Labor force participation rate is 1.5% lower than it was in February. The number of people who have only been able to find a part-time job increased by 383,000 to more than 6.7 million. These are people who want a full-time job but can't find one. About 20% of workers are still working remotely from home.
