US employers added 261,000 jobs in October, a sign that economy is resilient
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A business in Miami Beach, Florida, advertises for open positions.
PHOTO: NYTIMES
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WASHINGTON – Job growth in the United States remained stubbornly robust in October despite higher interest rates, defying policymakers’ efforts to dampen the labour market and curb the fastest inflation in generations.
Employers added 261,000 jobs in October on a seasonally adjusted basis, the Labour Department said on Friday. That was down from 315,000 in September. The unemployment rate rose to 3.7 per cent.
“The economy has transitioned from white hot to red hot,” said Mr Daniel Zhao, an economist at the career site Glassdoor. “It’s still a very hot labour market, but it has cooled down.”
The report offered a final glimpse of the economy before the midterm elections next week
Officials at the Federal Reserve have also been closely watching the labour market to assess whether their aggressive efforts to rein in inflation by raising interest rates are working.
They have been eager to see evidence that the labour market is softening and wage growth is subsiding, but not so much that the economy tumbles into a recession.
On Wednesday, the Fed raised interest rates another three-quarters of a percentage point
Economists have been expecting the labour market to cool, as higher interest rates make it more difficult for businesses to grow. So far, however, hiring has been remarkably resilient even as other aspects of the economy, such as the housing market, have slumped.
Job openings, after falling significantly in August, rose again in September to 10.7 million. That increase meant there were roughly 1.9 job openings for every unemployed worker.
The number of people who quit their jobs – typically a sign that workers are confident they will find better ones – ticked down to 4.1 million but remained high. Layoffs overall have stayed low.
NYTIMES
