The U.S. economy hit a wall in October, adding just 12,000 jobs—far short of expectations—and dealing a blow to Vice President Harris's economic message just days before Election Day.
The U.S. economy’s sluggish performance took center stage Friday as the Department of Labor released an October report showing a mere 12,000 new jobs added, far below economists’ expectations of 110,000. The news arrives with just days left before Election Day, posing a serious setback for Vice President Kamala Harris as she seeks to reassure voters of her economic leadership credentials amid a stagnant job market.
The October numbers come on the heels of revised job growth figures from August and September, which were both adjusted downward, bringing total employment gains 112,000 lower than previously reported. The Department of Labor noted that extreme weather conditions, including hurricanes and mid-month flooding, impacted payroll projections and led to a low survey response rate, further complicating economic forecasts. Yet, even within the wide range of predictions, economists had anticipated more robust hiring.
Private sector payrolls declined by 28,000 in October, a stark contrast to the anticipated 90,000-job growth. The drop was exacerbated by losses in the manufacturing sector, with 46,000 positions lost, largely due to strike activity in transportation equipment manufacturing. Government employment was one of the few bright spots, adding 40,000 jobs, but this gain was insufficient to counterbalance private sector losses.
This disappointing report punctuates an economic trend that has fallen short of predictions, marking the first time this year that job gains have dropped so low. Over the past 12 months, job growth had averaged 194,000 new positions each month, a figure now sharply undercut by October's results. The unemployment rate, however, held steady at 4.1%, an encouraging sign but one unlikely to outweigh concerns about a stalled job market.
The underwhelming jobs report could spell trouble for Vice President Harris, whose campaign has leaned heavily on the promise of economic stability and growth. With manufacturing employment tumbling and private sector payrolls faltering, the report provides fresh material for critics questioning the administration's ability to steer the economy through volatile times. This final piece of economic data before voters head to the polls could be pivotal as Americans weigh their choices, particularly in key battleground states where economic concerns loom large.
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