12,000 jobs added in October, as monthly report falls below expectations

WASHINGTON (WTVD) -- Employers added 12,000 jobs in October, a figure which fell well-short of analyst expectations.

"The expectation was about 100,000 new jobs and that expectation took into account the impact of Hurricane (Helene and Milton), plus the Boeing strike. So this definitely came below expectations. It is a surprise to the downside. The good news is that it's positive," said Cam Harvey, a Professor of Finance at the Duke Fuqua School of Business.

"We are seeing job growth at a slower pace, but to an economist that's to be expected. We've had a growing economy really since the mid part of 2020 when the pandemic began to recede," said Dr. Mike Walden, an economist and Professor Emeritus at NC State.

Further, the report included a downward revision of the August and September jobs report of 112,000 jobs.

"The hope is that that softening does not lead to negative growth and a large increase in the unemployment rate," said Harvey.

Nationally, the unemployment rate remained flat at 4.1%.

"4.1 percent is historically a good number. We start to get concerned if the rate goes above five. And we're pretty far from that right now," Harvey explained.

Harvey believes the Federal Reserve will take the report into account as it considers whether to institute another rate at its meeting next week.

"The Fed has kept rates far too high for far too long. We need cuts and we need them sooner rather than later. This jobs report with only 12,000 non-farm payroll increase, that will increase the chance that the Fed will cut at the next meeting," said Harvey.

In the Triangle, Denise Pavona, co-owner of Spherion Staffing and Recruiting, says there's been a notable shift in the types of clients seeking her services.

"I am seeing much more highly skilled applicants or candidates who have that higher level education in their background. I think that is attributable to more of the companies that are closing. Permanent closures and layoffs in our area," Pavona said.

She's continuing to see strong turnout at jobs fairs.

"Our job is really finding the right opportunity for the right candidate," said Pavona.

Pavona noted companies began starting to hire up for seasonal roles in September, ramping up as we approach the holidays.

"Third-party logistics, warehousing, distribution and manufacturing, the demand is always higher for seasonal hires," Pavona noted.

For those seeking job experience, including younger workers, she believes it provides a great opportunity.

"Anybody who is looking just to earn customer service skills, (there's) no better way to do that than in a retail environment because you're dealing with people all day long," said Pavona.

Statewide employment figures are not yet available for October. As of September, the state's unemployment rate of 3.8% was flat month-over-month, remaining slightly below the national average.