Jobs and stocks on the rise

The Labor Department corrected job gains for August and September above what initial data showed. Employers added 795,000 jobs in both months in addition to 531,000 new jobs in October. It was the largest increase since July, shooting past experts’ projections. Unemployment fell to 4.6 percent in October, representing roughly 7.4 million Americans out of work—1.7 million more than pre-pandemic levels. The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all rose on Friday after the Labor Department report was published and Pfizer released news about a potential COVID-19 treatment. 

What is the job breakdown? Labor force participation now stands around 60 percent, and nearly every industry except government added jobs in October. The hospitality sector saw the largest increase of 164,000 new positions, followed by manufacturers at 60,000. Average hourly pay also rose in October in response to rising consumer costs in food and energy. The job gains indicate the economy is slowly recovering from the pandemic recession, but the Labor Department data was collected before workplace vaccine mandates began to take effect this week. 

Dig deeper: Read Kent Covington’s report in The Sift about how the Federal Reserve plans to roll back economic stimulus measures.