US job growth slows, hit by carmakers' strike
Employment growth in the United States cooled in October, according to government data released on Friday, in part dragged down by an auto workers strike. The world's biggest economy added 150,000 jobs last month, less than analysts expected and down from a revised 297,000 figure in September, the Labor Department said. The unemployment rate edged up to 3.9 percent, the report added. President Joe Biden lauded the job creation numbers in a statement, adding that the share of working-age Americans with jobs is higher than pre-pandemic levels. "The unemployment rate has been below four percent for 21 months in a row, the longest stretch in more than 50 years," he said. Overall the latest figures reflect a downward trend in job growth, even if amplified by the impact of striking workers. This is likely seen as good news for policymakers, given concerns that a too-hot labor market could contribute to elevated inflation. The job market has been unexpectedly resilient over the past year, even as the central bank lifted interest rates rapidly to combat inflation -- a move that typically sees hiring cool and unemployment edge up. But robust job and wage growth has allowed consumers to continue spending even as inflation came down, buoying economic growth. This has lifted hopes that the United States can avoid a recession despite higher interest rates. Average hourly earnings in October rose 0.2 percent, inching down from the month before, Labor Department data showed. Wages were up 4.1 percent from a year ago, the lowest annual rise since June 2021. "The hiring slowdown was broad-based," said EY senior economist Lydia Boussour in a note, adding that services employment grew at a much slower pace. "Employment in manufacturing decreased by 35,000 in October, reflecting a decline of 33,000 in motor vehicles and parts that was largely due to strike activity," the Labor Department said. Last month, auto workers expanded a strike launched in mid-September. The United Auto Workers union had launched the first simultaneous work stoppage at the "Big Three" automakers -- General Motors, Stellantis and Ford -- pushing for higher wages and other improvements. At its height, the strike mobilized more than 45,000 workers. The impact from the movement reflects both striking workers and related layoffs at other firms in the supply chain, said economist Nancy Vanden Houten of Oxford Economics.  "The UAW has reached tentative contracts with all three car companies, but the agreements came too late in the month to be reflected in the October jobs report," she added in a recent note. (AFP)