U.S. Job Growth Continues in October, But Wage Increases Lag Behind Inflation
The U.S. economy added 165,000 jobs in October, extending a period of job growth following a slowdown earlier in the summer. This new data coincides with unemployment claims dropping to a 57-year low in October, indicating a stable labor market with relatively few individuals changing jobs. The unemployment rate decreased to 4.1%, having remained between 4% and 4.5% for the past two years. Despite this job growth, workers' incomes are struggling to keep pace with inflation. Incomes have risen by 3.1%, while inflation has increased by 3.7%. ADP, which monitors private-sector employment, reported that private employers added 86,000 jobs in October. The report highlighted that pay growth was most significant for workers who changed jobs, with their base pay increasing by 4.8%, compared to a 3% increase for those who remained in their current positions. Nela Richardson, ADP's chief economist, noted that employers of all sizes were hiring, and job-changers were attracted by bonuses, overtime, increased hours, a...