U.S. Job Growth Slows More Than Expected in October, Unemployment Rate Rises to 3.9%

The U.S. economy saw job growth slow more than expected in October, according to a report released by the Labor Department on Friday. Nonfarm payrolls increased by 150,000 for the month, below the Dow Jones consensus forecast of 170,000. The unemployment rate rose to 3.9%, against expectations that it would hold steady at 3.8%.

The report showed that employment as measured in the household survey, which is used to compute the unemployment rate, declined by 348,000 workers, while the rolls of the unemployed rose by 146,000. The more encompassing jobless rate that includes discouraged workers and those holding part-time positions for economic reasons rose to 7.2%, an increase of 0.2%.

The report comes after the Federal Reserve cut interest rates for the third time this year in October, in an effort to stimulate the economy. The job growth slowdown could take some heat off the Fed in its fight against inflation.

Economists have been expecting a slowdown in job growth for some time, as the labor market tightens and employers struggle to find qualified workers. The October report confirms those expectations, and could signal a further slowdown in job growth in the coming months.