The U.S. economy added 128,000 jobs in October and the unemployment rate ticked up to 3.6%, according to new data released Friday, overcoming the drag from a monthlong General Motors strike that ended last week.
The monthly employment report from the Labor Department far exceeded expectations from forecasters, who predicted 75,000 jobs would be created in October, a sharp dip from 136,000 in September. Unemployment was expected to increase slightly to 3.6% from 3.5% last month when the country saw a 50-year low.
The unemployment rate for African Americans reached a new record low of 5.4%. Hourly wages rose by 6 cents in October and grew by 3% over the past 12 months. In all, more than 158.5 million Americans are employed.
The strike at GM was projected to cast a shadow on the monthly employment report, as more than 47,000 workers were not working last month. The return of the United Auto Workers members to work after the strike’s end last week will likely boost the November employment numbers.
The strike caused employment in auto manufacturing to drop by nearly 42,000.
President Trump heralded the employment gains, proclaiming, “USA ROCKS!”
“Wow, a blowout JOBS number just out, adjusted for revisions and the General Motors strike, 303,000. This is far greater than expectations,” the president tweeted.
Wow, a blowout JOBS number just out, adjusted for revisions and the General Motors strike, 303,000. This is far greater than expectations. USA ROCKS!
— Donald J. Trump (@realDonaldTrump) November 1, 2019
Employment in August and September was revised up by 95,000.
The better-than-expected jobs gains come after the Commerce Department reported this week the U.S. economy grew at a modest annual rate of 1.9% in the third quarter of 2019, falling short of Trump’s target of 3% growth.
The Federal Reserve on Wednesday also cut interest rates for the third time this year, reversing almost all its 2018 rate hikes, as it seeks to sustain economic expansion, now in its 11th year.
The protracted trade war with China and the weakening of global growth have been weighing on the U.S. economy, as well as the downturn in manufacturing.
But trade tensions between the United States and China, however, could let up as Trump announced last month a phase one deal with Beijing. The agreement, the details of which have yet to be released, staved off a planned hike in tariffs on Chinese imports for Oct. 15.
The initial deal was supposed to be signed when Trump headed to Chile next month for the Asia-Pacific Economic Cooperation forum, but Chile canceled the meetings amid protests.
The White House said despite the cancellation, the Trump administration is aiming to finalize the deal “within the same time frame.”
