The U.S. economy added 151,000 jobs in October, according to the U.S. Bureau of Labor Statistics. Despite the fact jobs were added to the economy, unemployment stayed at 9.6%, showing the country is not in the clear quite yet.
October Figures More Accurate
The loss of jobs due to the end of the U.S. Census made it difficult to accurately gauge last month’s unemployment rates, and August employment rates were also affected by census hiring. After the highs and lows the government’s job creation and cuts brought, October’s numbers provide more stable data. After four months of losses, the news of added jobs comes as a slight relief to some.
October has brought gains in the job market: 159,000 jobs were added this month, a 52,000-job increase from last month. Although there were gains in jobs, there was no reported change in the unemployment rate as it stayed at 9.6%. Currently around 15 million unemployed individuals are looking to secure a job but are unable to find one. Feeling the pressure of a U.S. dollar nearing deflation, the Federal Reserve issued with a plan to stimulate the economy by purchasing $600 billion in securities and assets.
Strongest Growth Sectors
Certain job sectors have reported a greater increase in openings, including education and health services with 53,000 jobs, retail with 28,000 and temporary health services with 34,000 jobs.
The October job report numbers brought better results than analysts had expected: “The notion that economy might be double-dipping can now be safely tossed out,” John Ryding, a chief Economist at RDQ economics, told The New York Times. Ryding said he thinks the recent reports indicate a future pickup in job growth.
President Barack Obama in a Friday statement said the report brought “encouraging news” but he also said that it was still “not good enough.” Obama said he would not be content until “everybody who is looking for a job can find one.” Obama did mention possible business tax breaks as well more spending in relation to infrastructure but there were no specific solutions proposed. The President emphasized the need of of the House and the Senate to work together and focus on speeding up the economic growth.
Obstacles to Job Growth
Besides the slow economic growth affecting job creation, many businesses are hesitant to make decisions before they see the consequences of different measures set to expire. With the Bush Tax Cuts about to expire and the new health care regulations in place, business owners do not know what kind of budget to set to cover business and payroll costs.
The sluggish growth weighs on many people’s minds — especially those on unemployment. The split in Congress raised concerns of a legislative gridlock when deciding matters related to economic stimulus. According to the Times, “the last tier of unemployment benefits is also scheduled to expire soon,” if Congress does not take action. The midterm election results leave many Americans wondering whether or not the split in Congress will hinder any regulations in relation to unemployment.