October jobs report: US economy adds just 12,000 jobs as Boeing strike, hurricanes weigh on labor market

Published On Nov 1, 2024, 8:37 AM

The October jobs report revealed that the U.S. economy added only 12,000 jobs, significantly below the expected 100,000. This underperformance is attributed to disruptions caused by recent hurricanes and a strike at Boeing. The unemployment rate remained unchanged at 4.1%, while year-over-year wage growth increased to 4.1%. The report is pivotal as it precedes a scheduled Federal Reserve policy meeting, where market expectations lean towards a potential interest rate cut.

Stock Forecasts

The disappointing jobs report could lead to further market volatility, particularly affecting sectors sensitive to economic performance such as industrials and consumer discretionary. The Fed's anticipated rate cut may benefit growth-focused sectors but could signal a slowdown for the overall economy.

Given the context of a weaker labor market, companies directly impacted by recent strikes and natural disasters could see stock declines. Boeing has already faced challenges, and extended impact from the strike may keep the stock under pressure in the short term.

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Recent hurricanes and a worker strike at Boeing are expected to have weighed on job growth in October, creating a murky picture of the labor market for the Federal Reserve ahead of its next policy decision.

The union representing more than 30,000 striking workers endorsed the offer and will hold a ballot on Monday.