The October 2024 BLS employment report indicates a slowdown in U.S. job growth, with just 12,000 new jobs added, a sharp deceleration compared to prior months. The unemployment rate held steady at 4.1%, while the labor force participation rate remained stable. Government and Healthcare led the job gains, but these were largely offset by losses in temporary help services, manufacturing, and transportation.
· Nonfarm payrolls increased by 12,000 for the month, down sharply from September and below the Dow Jones estimate for 100,000.
· Revisions lowered previously reported job creation totals by 112,000 for August and September combined.
· The BLS noted that the Boeing strike likely subtracted 44,000 jobs in the manufacturing sector, while hurricanes also likely held back the total.
Job openings also dropped significantly in the latest JOLTS report, falling to 7.4 million, a noticeable decline from the same period last year, signaling cooling labor demand across the board. The temporary staffing sector continued to face challenges, with declines reflecting lower demand in manufacturing and logistics. While healthcare and education experienced some growth, overall hiring rates have trended down, reflecting a general slowdown in the labor market.
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· A more encompassing measure of unemployment (U6) that includes discouraged workers and those holding part-time jobs for economic held steady at 7.7%.
· Prime age labor force participation rate (ages 25-54) was down .3% to 83.5%.
· The overall labor force participation was down .1% at 62.6%. This is still .6% below the level of February 2020.
· In October, average hourly earnings for all employees on private nonfarm payrolls rose by 13 cents, or 0.4 percent, to $35.46. Over the past 12 months, average hourly earnings have increased by 4.0 percent. In October, average hourly earnings of private-sector production and nonsupervisory employees rose by 12 cents, or 0.4 percent, to $30.48.
· The average workweek for all employees on private nonfarm payrolls remained at 34.3 hours in October. In manufacturing, the average workweek was little changed at 39.9 hours, and overtime edged down by 0.1 hour to 2.8 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls edged down by 0.1 hour to 33.7 hours.
· APD reported that 233,000 jobs were added in October.
JOB OPENINGS AND LABOR TURNOVER – SEPTEMBER 2024
The number of job openings was little changed at 7.4 million on the last business day of September, the U.S. Bureau of Labor Statistics reported today. Over the month, hires changed little at 5.6 million. The number of total separations was unchanged at 5.2 million. Within separations, quits (3.1 million) and layoffs and discharges (1.8 million) changed little. This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector, by industry, and by establishment size class.
Job Openings
The number of job openings was little changed at 7.4 million on the last business day of September but was down by 1.9 million over the year. The job openings rate, at 4.5 percent, changed little over the month. The number of job openings decreased in health care and social assistance (-178,000); state and local government, excluding education (-79,000); and federal government (-28,000) but increased in finance and insurance (+85,000).
Hires
In September, the number and rate of hires changed little at 5.6 million and 3.5 percent, respectively.
Separations
Total separations include quits, layoffs and discharges, and other separations. Quits are generally voluntary separations initiated by the employee. Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs. Layoffs and discharges are involuntary separations initiated by the employer. Other separations include separations due to retirement, death, disability, and transfers to other locations of the same firm.
The number of total separations in September was unchanged at 5.2 million but was down by 326,000 over the year. The total separations rate was unchanged at 3.3 percent over the month.
In September, the number of quits changed little at 3.1 million but was down by 525,000 over the year. Over the month, the quits rate was little changed at 1.9 percent. Quits decreased in professional and business services (-94,000) but increased in state and local government, excluding education (+22,000) and in real estate and rental and leasing (+18,000).
In September, the number of layoffs and discharges changed little at 1.8 million but increased by 238,000 over the year. The layoffs and discharges rate increased to 1.2 percent in September. Layoffs and discharges increased in durable goods manufacturing (+46,000) but decreased in state and local government, excluding education (-20,000).
The number of other separations changed little at 292,000 in September.
Establishment Size Class
In September, establishments with 1 to 9 employees showed little or no change in job openings, hires, quits, and total separations rates, while the layoffs and discharges rate increased. For establishments with 5,000 or more employees, the job openings, hires, and total separations rates showed little or no change.
August 2024 Revisions
The number of job openings for August was revised down by 179,000 to 7.9 million, the number of hires was revised up by 118,000 to 5.4 million, and the number of total separations was revised up by 171,000 to 5.2 million. Within separations, the number of quits was revised up by 94,000 to 3.2 million, and the number of layoffs and discharges was revised up by 60,000 to 1.7 million. (Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.)
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The Job Openings and Labor Turnover Survey estimates for October 2024 are scheduled to be released on Tuesday, December 3, 2024, at 10:00 a.m. (ET).
Source: ADP, BLS, CNBC, Fox News
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