US job growth slowed to 150,000 in October; Employment in the entertainment sector continues to decline due to a strike

The US economy added 150,000 jobs in October, far fewer than the previous month, while the unemployment rate rose to 3.9%.

While some of the biggest job losses from the auto workers’ strike were in the manufacturing sector, the entertainment industry continued to shed workers, losing 5,400 film and recording studios to 428,200, according to the Bureau of Labor Statistics. . The sector has lost 44,000 jobs since May, at least partly due to strikes. The WKV approved a new contract earlier this month, but negotiations between SAG and AFTRA with the studios continue.

In September, employment data showed a stronger-than-expected pace of job growth, with 336,000 new jobs. However, the Bureau of Labor Statistics revised that number to 297,000. The August numbers were also revised downward by 62,000 to 165,000. Such changes are often made as the BLS receives more data.

Job growth in October was lower than expected and also below the average monthly gain of 258,000 last year.

The UAW reached a tentative agreement with General Motors earlier this week, ending labor action against the Detroit automaker. Employment data showed that manufacturing employment fell by 35,000 in October, including 33,000 in the motor vehicle and parts sector, or mainly due to strike activity.

The Federal Reserve decided this week to keep its key interest rate at 5.25% to 5.5%. But that was followed by 11 interest rate hikes in an effort to curb inflation while sending the economy into a so-called soft landing.

Justin Wolfers, a professor at the University of Michigan, said the latest runway numbers follow the soft landing script “remarkably now.”

“I might have liked a more meaningful report, but if you asked the Fed for dream numbers, it would be these,” he wrote on X/Twitter. “Job growth slows to sustainable levels, labor supply remains robust and wage growth slows to levels consistent with the inflation target.”

Noah Yasif, chief labor economist at UKG, a payroll and shift accounting software company, wrote in a memo that the labor market is “finding peace.”

“The days of explosive growth are over as the job market shifts to healthier and more sustainable areas,” he wrote. “All indicators point to continued silence for the foreseeable future. This is a slowdown, not a collapse.”

There were also job losses in publishing, 4,500 to 925,300, while employment in broadcasting and content providers was largely unchanged at 347,700.

The biggest job gains during the month were in health care, government and social security.

There is more to come.