US Nonfarm Payroll Increases by 199,000 in October; Unemployment Falls to 3.7%

The US Bureau of Labor Statistics (BLS) reported on Friday (12-08-23) that total nonfarm payroll employment increased by 199,000 in November. Employment growth was below the average monthly gain of 240,000 over the prior 12 months but in line with job growth in recent months.

Notable gains occurred in the following sectors:

• Health care added 77,000 jobs in November, above the average monthly gain of 54,000 over the prior 12 months.
• Government employment increased by 49,000 jobs in November, in line with the average monthly gain of 55,000 over the prior 12 months.
• Employment in manufacturing rose by 28,000 in November, reflecting an increase of 30,000 in motor vehicle and parts as workers returned from a strike. Employment in manufacturing has shown little net change over the past 12 months.
• Leisure and hospitality increased by 40,000 in November, with almost all of the increase in food services and drinking establishments. Over the past 12 months, leisure and hospitality has added an average of 51,000 jobs per month.
• Social assistance added 16,000 jobs in November. Over the past 12 months, the industry has added an average of 23,000 jobs per month.

Employment was little changed in other major industries, including mining, quarrying, and oil and gas extraction; construction; wholesale trade; financial activities; professional and business services; and other services.

In November, the unemployment rate declined by 0.2% to a reading of 3.7%, and the number of unemployed persons decreased from 6.5 million in October to 6.3 million in November. The BLS also reported that the number of long-term unemployed (those jobless for 27 weeks or more) edged down to 1.2 million. These individuals accounted for 18.3% of all unemployed persons.

The BLS notes that monthly revisions result from additional reports received from businesses and government agencies since the last published estimate and from recalculations of seasonal factors. As a result, the change in total nonfarm payroll employment for September was revised downward by 35,000—from 297,000 to 262,000—and the change for October remained at +150,000. With these revisions, employment in September and October combined is 35,000 lower than previously reported.