Government employment rose by 33,000, maintaining a steady trend, while transportation equipment manufacturing benefited from the return of striking workers, adding 32,000 jobs. Conversely, retail saw a decline of 28,000 jobs, mainly due to losses at general merchandise retailers.
Wages and workweek trends
Wages also saw incremental growth, with the average hourly wage increasing 0.4% to $35.61 per hour, an increase of 4.0% year over year. This indicates persistent wage pressure on the labor market. Meanwhile, the average working week rose slightly by 0.1 hour to 34.3 hours, continuing the gradual upward trend.
Labor participation and unemployment insights
Despite positive job growth, labor force participation remained stable at 62.5%, reflecting a lack of significant movement in labor market engagement. The unemployment rate rose slightly and long-term unemployment continued to affect 1.7 million people. In addition, 5.5 million people were not in the labor force but indicated that they still wanted a job, underscoring the ongoing difficulties in re-entering the labor market.
Market Outlook
In the short term, the labor market appears poised for moderate expansion, especially in healthcare and hospitality. However, the rebound in unemployment, coupled with ongoing retail challenges, suggests that job growth may face headwinds as we approach the end of the year. The data generally support a stable but cautious outlook, with wage pressures continuing to exert an inflationary impact on the broader economy. Traders can expect a mixed market reaction, with employment data contributing to continued market volatility.
More information in our Economic Calendar.