The US economy’s latest jobs report was “a head fake” due to hurricane-related disruptions and a strike at Boeing, according to Mark Zandi, chief economist at Moody’s Analytics. The actual job growth numbers were around 150,000, significantly smaller than the reported increase.
Zandi attributes this discrepancy to temporary factors like hurricanes, strikes, and declining gasoline prices. He believes the job market remains “rock-solid” and suggests that the US economy has already experienced a decline in September.
Meanwhile, Donald Trump’s campaign claims the report is evidence of Kamala Harris’ poor economic management. However, experts argue that there’s more to consider than just one report. The Biden administration expects job growth to bounce back in November as hurricane recovery efforts continue.
In a note, Ali Jaffery of CIBC Economics states that the October data point will likely be discounted by the Federal Reserve, which is expected to cut interest rates again on November 7. Economists are more focused on the trend up until September, indicating a cooling job market.
Markets reacted positively to the jobs report, with major stock indexes jumping after the release of the numbers.
Source: https://www.marketwatch.com/story/october-jobs-report-was-a-head-fake-look-at-these-numbers-instead-before-election-day-c9d4b90e?gaa_at=la&gaa_n=AWsEHT6kmQ2G4yL41cptRTsuryT6g0FJY38bkQE-5hhPnjk_n43ByFTBgNlt5415D5t939I8R_kPKZbJwNZ0&gaa_ts=6727c8c1&gaa_sig=38f2_Lo7l0pVmsI5xPxqXK6LPFOGjzcs6c1EefwIpJk3DT660q0vUYULNHCraxC46TcbNABb_yb3DSIVf0nYfQ==