“We have high inflation and we have to balance that with what’s going on in the employment market,” Fed Chair Jerome Powell told reporters on Wednesday following the central bank’s policy meeting. “It’s a complicated situation.”
October’s gain leaves payrolls 4.2 million below their pre-pandemic level. The pace of hiring in the coming months risks being restrained by new Covid flare-ups. Recent data show hospitalizations increasing in 13 states, which could signal another virus wave. Health care payrolls climbed in October by the most this year, led by home health care and nursing.
The Labor Department’s report showed average workweek fell to 34.7 hours in October from 34.8 hours a month earlier.
The stagnant labor force participation rate -- the number of Americans either employed or looking for work -- points to challenges with getting people back into jobs. Participation has remained near current levels since August of 2020, due in part to increased retirements and parents leaving jobs for child care purposes.
“There is still ground to cover to reach maximum employment both in terms of employment and in terms of participation,” Powell said Wednesday.
Unemployment rates for White and Hispanic Americans dropped in October, while the Black and Asian rates were unchanged.
--With assistance from Kristy Scheuble, Reade Pickert, Ana Monteiro, Sophie Caronello, Sydney Maki, Scott Lanman and Michael McDonough (Economist).
This article was provided by Bloomberg News.