October’s job report reflects the tumult of a month marked by hurricanes, strikes, and pre-election scrutiny. The U.S. added only 12,000 jobs, a steep drop from September’s 223,000, bringing hiring to its lowest level since late 2020. Yet, in an election season charged with economic focus, the steady 4.1% unemployment rate—a low not seen pre-election in 24 years—suggests a mixed but steady economic foundation.
Eric Peters, President BGSF Professional Division, offers perspective: "October's report shows us the impact of both natural and economic disruptions in real time. The hurricanes and strikes were major factors this month, but the steady unemployment rate of 4.1% tells us that the core labor market remains resilient. Employers are balancing growth with caution, knowing that workforce flexibility will be essential in this landscape."
What’s Behind the Numbers?
A blend of unexpected disruptions hit October’s job growth hard, particularly in the Southeast and the manufacturing sector. Natural disasters and labor disputes together took a serious toll, with economists estimating they subtracted anywhere from 70,000 to over 100,000 jobs from the month’s total.
Hurricanes Helene and Milton drove down job counts in the Southeast by up to 70,000. Florida, where Helene struck in late September, saw hours worked and business openings drop by about 9% across impacted regions. Meanwhile, Hurricane Milton landed during the October job survey week, disrupting business activity precisely when it mattered most for monthly job count tallies.
Labor Strikes in Manufacturing and Services removed an additional 40,000 jobs from payrolls. The Boeing strike and smaller walkouts in aerospace parts manufacturing and hospitality slowed hiring significantly.
Sector Performance: Navigating Challenges
Kelly Brown, President BGSF Property Management Division, notes: "Job seekers and employers alike are navigating a unique labor market—one influenced by everything from weather to global events. For businesses, now is a moment to refine hiring strategies and invest in employee retention, particularly in sectors like health care and finance where demand remains high. For job seekers, aligning your skills with these growth areas can be a real advantage as we close out the year."
Sector Highlights:
Growth Sectors:
Health Care: Continued consistent hiring
Government: Steady job additions, especially at the state level
Finance and Insurance: Rising demand for skilled professionals
Wages and Economic Outlook
Wage Growth: Average increase of $0.13 to $35.46, representing a 4% year-over-year rise
Employment Cost Index: Private-sector wage growth slowed to 3.8%, the lowest in three years
What Does This Mean for Employers and Job Seekers?
The October jobs report highlights a labor market facing new dynamics, with mixed opportunities and challenges for both employers and job seekers.
For Employers:
Prepare for Skill Gaps: In sectors like health care and government, where hiring remains strong, employers may need to invest in attracting talent or enhancing skills internally. While labor availability is rising, targeted roles are still hard to fill.
A Cautious Approach to Expansion: With job openings in decline, this month’s report hints at a conservative outlook from many employers. If your business is in an industry impacted by seasonality or economic shifts, re-evaluate hiring goals and leverage flexible staffing to meet uncertain demand.
For Job Seekers:
Timing is Key: If you’re in a hurricane-affected area or industry, anticipate hiring delays but also the potential for seasonal roles or project-based opportunities as businesses recover and demand spikes.
Focus on Growth Sectors: Healthcare and public sector roles have shown resilience, making them strong areas for job hunting. Additionally, finance and insurance positions are seeing rising demand, presenting new opportunities if you have relevant skills or are open to reskilling.
Looking Ahead
October's job report underscores an economy adjusting to disruptions and finding a cautious equilibrium. For businesses and job seekers alike, the path forward will likely demand flexibility, focus, and resilience. As the election season progresses, labor trends may fluctuate with policy changes and economic shifts. Whatever the outcome, we’re here to help you stay prepared, adaptable, and informed.
Contact BGSF
BGSF is a top provider of staffing and workforce solutions for professional and property management, dedicated to delivering quality, innovation, and customer satisfaction. Our services cater to a variety of client needs, supported by a team of skilled and committed professionals who are enthusiastic about assisting clients in achieving success. If you are seeking a partner for professional or managed services to help you reach your business objectives, please reach out to BGSF today.
Comments