The U.S. economy experienced almost no job growth in October as the pace of employment creation slowed to its lowest level since December 2020, according to the official jobs report released Friday.
This downturn likely reflects the impact of hurricane disruptions, strikes in manufacturing and election-related uncertainties, all of which affected hiring nationwide.
Total nonfarm payrolls grew by only 12,000 last month, a sharp decline from the average monthly gain of 194,000 over the previous year.
Despite the hiring freeze, the unemployment rate held steady at 4.1%, suggesting that businesses are retaining their existing workforce even as new job creation stalls.
October Employment Situation: Key Highlights
Stocks Rally As Fed Rate-Cut Expectations Soar
Following the release of the October jobs report, futures on major U.S. equity indices rallied, driven by increased expectations of Federal Reserve rate cuts.
Contracts on the S&P 500 and Nasdaq 100 both rose by 0.5%, while Russell 2000 futures surged 0.8%. This rebound comes after the SPDR S&P 500 ETF Trust (NYSE:SPY) closed 1.9% lower on Thursday, marking its steepest one-day decline since early September and ending a five-month winning streak.
The disappointing jobs data led markets to fully price in a 25-basis-point rate cut at the Fed’s upcoming meeting on November 7, according to the CME FedWatch Tool. Additionally, the probability of another quarter-point cut in December increased to 86%, up from 75% previously.
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Photo: National Oceanic and Atmospheric Adminstration (NOAA).
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