US employers added 128,000 jobs in October, the Bureau of Labor Statistics said in its monthly jobs report.
Meanwhile, the unemployment rate rose slightly to 3.6%, but it was for a good reason: 325,000 Americans started looking for work.
While the October report did show that US manufacturers lost 36,000 jobs last month, BLS Commissioner William Beach noted the decline largely reflected strike activity. Now that the strike is over, those jobs should bounce back in November, Gus Faucher, PNC chief economist, wrote in a note to clients.
“With good job gains and solid wage growth, households’ incomes are increasing, which will boost consumer spending through the end of 2019 and into 2020,” he said. “The current economic expansion, already the longest in US history, looks set to continue at least through the first part of next year despite the trade war drag.”
Another bright spot came from strong revisions to prior data, which showed an extra 95,000 jobs were added in August and September combined.
The unemployment rate, at 3.6%, remains near a 50-year low. In October, the labor market participation rate climbed to 63.3%, its highest level since August 2013.
“Really, there is nothing here to worry about,” wrote Thomas Simons, senior money market economist at Jefferies in a note to clients. “Whatever weakness we see here this month (which is not as weak as expected to begin with) is going to be added back in with the November data.
“American companies picked up the pace of hiring in October, suggesting the worst might be over for the economic slowdown, while the Fed’s pivot toward pausing might be appropriate,” said Sal Guatieri, senior economist at BMO.