October Jobs Report

“Surprising Burst of Strength”

Better than expected, but not back to normal.

What we learned from the October jobs report.

The Basics:

Last month the U.S. gained 638,000 jobs.

This is better than expected (especially since more than 150,000 census workers lost their temporary jobs).

The new unemployment rate is 6.9% – a full percentage point lower than September, but the nation still has 10M fewer jobs than before the pandemic.

“It was a pleasant surprise to see that the pace of the recovery hasn’t slowed down. But we all need to keep in mind the huge hole that we’re in, in terms of jobs and unemployment.”

Economist Nick Bunker at Indeed, the job search website. While the economy added jobs, gains in October were lower than September and August. Concerns remain about the pace of job recovery and strength of seasonal hiring.

Something to Consider

• Quantity vs. Quality: While hiring appears strong, questions remain about earning power. For example – if a waiter was rehired, are they making the same amount in tips vs. pre-COVID?
• Need vs. Want: What is the impact of the record number of women leaving the labor force during the COVID-19 pandemic? She may want to work, but is no longer counted as part of the labor force if she needs to stay home.

Whoever wins the presidency will confront an economy hurt by the global pandemic. Different opinions exist about the role of government to stimulate an economy – with some proposing massive spending and others wary of it.