Employment in the United States grew less rapidly than expected in October. The world’s largest economy added 150,000 new jobs last month, according to the U.S. Department of Labor’s landmark monthly jobs report.
Economists expected an average of 170,000 new jobs. Job growth in September was revised downwards to 297,000. Previously, a gain of 336,000 jobs had been reported for that month. Unemployment in the US rose to 3.9 percent from 3.8 percent a month earlier. That is the highest level since the beginning of this year.
The government jobs report is important for the Federal Reserve’s interest rate policy. The US central bank has raised interest rates significantly to combat high inflation. So far, the American economy has managed to weather these higher borrowing costs well.
The Fed paused interest rates for the second time this week. The central bank left the door open to another interest rate increase this year, but the financial markets are hoping that interest rates have now reached their peak. The weaker-than-expected jobs report fuels hopes that the Fed will indeed not need to raise rates any further.