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The U.S. economy is still adding jobs, though at a slower pace,
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The numbers: The U.S. regained 630,000 jobs in October and the unemployment rate fell sharply again to 6.9%, reflecting a surprising show of strength for the economy even as coronavirus cases rose to record highs.
Economists polled by MarketWatch had forecast 503,000 new jobs. In premarket trading, U.S. stocks were mixed after the report.
The increase in hiring last month was largely concentrated in professional businesses, leisure and hospitality and retail.
Government employment fell sharply, however, to pull down the overall total. Private-sector employment rose by a more robust 906,000.
The unemployment rate sank to 6.9% from 7.9% , though it probably understates the true level of joblessness by a few percentage points. The jobless rate had soared to a record 14.7% in April before receding.
Some 11 million of the 22 million jobs that were lost early in the pandemic still haven’t been recovered, however,
The big picture: Despite an October surprise of sorts, hiring has slowed.
What’s worrisome is the high number of jobs that still haven’t been recovered and what it means for the U.S. recovery. The end of massive federal aid in July and a record wave of coronavirus cases last month could make it harder for the economy to grow and let the companies harmed most by the pandemic get back to business.
Washington is likely to approve another aid package in the next month or two, and that’ll help, but only the prospect of coronavirus vaccine offers a full cure for what ails the U.S. economy.
Market reaction: The Dow Jones Industrial Average DJIA, +1.94% and S&P 500 SPX, +1.94% were set to open mixed in Friday trades. Stocks have rallied this week amid a U.S. election that will likely result in divided government and little change in economic policy in Washington.
