Mixed Signals: US Labor Market Slows, Unemployment Rate Holds at 3.9%
The US labor market showed signs of loosening as job gains slowed in October, partly due to strikes by the United Auto Workers (UAW) union against major car manufacturers. Nonfarm payrolls increased by 150,000 jobs, while the unemployment rate rose to 3.9%. Average hourly earnings saw the smallest increase in nearly 2-1/2 years. The report suggests a softening in labor market conditions and strengthens expectations that the Federal Reserve will not raise interest rates further. Despite the slowdown, hiring remains above the level needed to keep up with population growth.