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Writer's picture Management Recruiters San Francisco Bay Area

Employment Situation Report Summary for October 2024

Updated: Nov 13

Management Recruiters

San Francisco Bay



Employment market turmoil created by recent hurricanes and significant labor strikes was expected to impact today’s Bureau of Labor Statistics (BLS) jobs data. While the BLS could not directly quantify storm and strike damage to the data, most analysts had

estimated an impact of up to 100,000 jobs.


With that as background, October’s data indicated employment essentially unchanged, increasing 12,000 versus September, significantly lower than the consensus estimate expansion of 100,000 and lower than the average monthly gain of 194,000 over the prior

12 months.


Additionally, the change in total nonfarm payroll employment for August was revised down by 81,000, from +159,000 to +78,000, and the change for September was revised down by 31,000, from +254,000 to +223,000. With these revisions, employment in

August and September combined is 112,000 lower than previously reported.


The unemployment rate was unchanged at 4.1 percent in October, and the number of unemployed people was little changed at 7.0 million. These measures are higher

than a year earlier, when the jobless rate was 3.8 percent, and the number of unemployed people was 6.4 million.


Our MRINetwork team of over 1000 talent consultants is immersed in the ongoing debate over the role of remote work in the future of our jobs market" noted Rick

Hermanns, president and chief executive officer of HireQuest Inc., parent company of MRINetwork.


“Our recent whitepaper and our ongoing talent consultations with senior client executives stresses the need for a measured and well thought out policy. We urge clients to avoid knee-jerk remote work decisions in what must be a metrics driven evaluation process. I call it a ‘tricky trilemma’ as firms search for the right balance of three possible decisions — unlimited work-from-home, a hybrid approach, or an in-office mandate.

The right answer will vary by industry and even by cultural differences of firms within an industry. In the meantime, the estimated 42 percent of workers now working exclusively from home or in a hybrid environment are looking for decisions from the 64 percent of 1,300 CEOs recently surveyed by KPMG who expect all workers will be back in office by 2026.”


Reporter Matt Ott from The Associated Press, confirming the BLS analysis of weather and strike variances, referenced Nancy Vanden Houten, lead U.S. economist at Oxford Economics. “Claims will likely continue to be elevated in states affected by Helene and

Hurricane Milton as well as the Boeing strike until it is resolved,” said Nancy. “We think, though, that the Fed will view these impacts as temporary and still expect it to lower rates by (25 basis points) at the November meeting.”


Adding additional insight into today’s data, Bloomberg reporter, Matthew Boesler noted, “The numbers will complicate the picture for Federal Reserve officials trying to discern the outlook for the labor market at their November 6-7 policy meeting. Still, the central bank is widely expected to authorize a quarter-point interest-rate

cut at the meeting, following on from an initial half-point reduction in September.”


Key industries reported the following trends in October:


Healthcare added 52,000 jobs in October, in line with the average monthly gain of 58,000 over the prior 12 months.


Employment in government continued its upward trend in October (+40,000), similar to the average monthly gain of 43,000 over the prior 12 months.


Within professional and business services, employment in temporary help services declined by 49,000 in October. Temporary help services employment has decreased by 577,000 since reaching a peak in March 2022.


Manufacturing employment decreased by 46,000 in October, reflecting a decline of 44,000 in transportation equipment manufacturing that was largely due to strike

activity.


Labor Market Snapshot



The full Bureau of Labor Statistics report can be downloaded here:




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