The U.S. payrolls increased by 150,000 in October, which is slightly less than what economic experts had predicted. Though the unemployment rate remained unchanged at 3.7%, this news is still less than encouraging.
The U.S. economy and the job market have been struggling with fluctuations in recent months. The economic growth slowed down due to the unresolved trade dispute between the U.S. and China. In addition, many American workers have been affected by the General Motors strike. The increase in payrolls in October, though not substantial as expected, indicates that the months-long trend of declining growth could be coming to an end.
The U.S. Bureau of Labor Statistics has revealed that the average hourly earnings have increased, which is seen as a positive sign for the country’s overall economic situation. This suggests that American workers might be earning more in their jobs, despite the slight increase in payrolls.
Experts are however concerned that the monthly payroll increase in October could be a blip rather than a sign of lasting economic recovery. The latest job growth figure is well below the average monthly job increase of about 180,000 experienced over the past two years. This could be an indication that the job market is not yet ready to make a full recovery from the uncertainty caused by the ongoing trade war between the U.S. and China.
The October payroll numbers might act as a wake-up call for the U.S. governments and companies to take measures that will help boost the employment rate. Such measures could include increasing the minimum wage, developing policies that make it easier to hire and retain workers, and providing more generous tax breaks to businesses. Until these initiatives are implemented, it is unlikely that the U.S. job market will experience a significant increase in payrolls.
