The number of new jobs created in the U.S. economy in October was the lowest in five months.
According to the U.S. Bureau of Labor Statistics, 638,000 new jobs have been created in the non-agricultural sector. However, this figure was higher than the experts’ estimate of 600,000. At the same time, the agency reported a decrease in unemployment to 6.9% from the September level of 7.9%. This figure was lower than the market forecast level of 7.7%. The Bureau stressed in its report that the labor market continued to face difficulties due to the increasing number of COVID-19 diseases and the lack of new incentives to support the economy. It was highlighted that these factors can sharply slow down the recovery of the U.S. economy in the fourth quarter. The department said in a statement that the next president, whether it’s incumbent President Donald Trump or Democratic nominee Joe Biden, will face these challenges.
The figures released today showed that new applications for unemployment benefits fell slightly at the end of October. Particularly, weekly initial applications for unemployment benefits fell by 7,000 to the periodically adjusted size of 751,000 applications for the week ended October 31, the US Department of Labor announced. It was the lowest level since the first “lockdowns” in the United States in mid-March to halt the spread of coronavirus. At the same time, last week’s figures were revised upward to 758,000 applications.
The number of Americans receiving unemployment benefit through regular state programs, which cover more people, fell by 538,000 to about 7.3 million for the week ended 24 October. This is also the lowest level since March.
Wall Street indices strengthened on Thursday after previous day rally, as investors were not only observing the U.S. presidential election results but also kept an eye on the Feds meeting as well as employment statistics summary.