Impact of Hurricane and Boeing Strike
Unemployment Rate Remains Unchanged from Previous Month
The increase in nonfarm payrolls in the United States for October fell significantly short of expectations due to the impact of a powerful hurricane and strikes. Since the employment indicators were affected by temporary factors, the influence on this month's interest rate decision is expected to be limited. The unemployment rate remained unchanged at 4.1%, in line with expert forecasts.
On the 1st (local time), the U.S. Department of Labor announced that nonfarm payrolls in the U.S. increased by 12,000 compared to the previous month. This figure is far below the expert forecast of 110,000 compiled by Dow Jones.
The U.S. Bureau of Labor Statistics explained that "estimates of job numbers in some sectors may have been affected by the hurricane." Following hurricanes Helen and Milton that swept through the southeastern U.S. in September and October, the employment data was impacted.
The strike by Boeing aircraft manufacturer workers also contributed to the decrease in jobs. Last month, manufacturing sector jobs decreased by a total of 46,000, including 44,000 jobs lost due to the Boeing strike and other factors. However, the government sector increased by 40,000 jobs, and the healthcare services sector rose by 52,000 jobs, offsetting the decline.
Since the damage caused by the hurricane and strikes is temporary, it is unlikely to have a significant impact on the Federal Reserve's benchmark interest rate decision. After the U.S. presidential election next week, the November Federal Open Market Committee (FOMC) meeting is scheduled to be held on the 6th and 7th.
The unemployment rate for October was 4.1%, matching market expectations (4.1%). It was the same figure as the previous month (4.1%). The average hourly wage growth rate was recorded at 0.4% month-over-month and 4.0% year-over-year.
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