Breaking News: U.S. Non-Farm Payrolls Fall Short with Only 12,000 Jobs Added in October

The latest US Non-Farm Payrolls (NFP) report is a doozy. The economy added only 12,000 jobs in October, way below the 106,000 expected and 223,000 in September. This is a big slowdown in hiring and will no doubt raise concerns about the US labor market heading into the holidays.

And to add to the surprise, Average Hourly Earnings rose 0.4% which was above the 0.3% expected. So while job creation has stalled, employers are still competing for talent by paying up.

The Unemployment Rate was unchanged at 4.1% as expected but the lack of job growth will have the Fed wondering if their strategy to tame inflation without hurting the economy is sustainable.

This will send shockwaves through the markets. The US Dollar is already selling and equity markets will be volatile as investors process the slowdown in the labor market. This NFP miss will also complicate the Fed’s decision making as they balance economic stability with inflation control.

Analysts are now saying this could prompt the Fed to pause rate hikes sooner than expected if further data shows a slowing economy. But the higher than expected wage growth will keep inflation concerns alive so they are in a tough spot.

Key Highlights:

• Jobs Added: Only 12,000 in October, sharply missing the 106,000 forecast.
• Average Hourly Earnings: Up 0.4%, indicating wage pressures remain.
• Unemployment Rate: Steady at 4.1%, in line with expectations.

Now the wait is on for the Fed and the data. For now the NFP numbers are a cloud over the economy and investors should get ready for some market volatility.