October jobs report: 531,000 jobs added vs. 450,000 estimate


CNBC’s Rick Santelli and Steve Liesman, along with ADP Chief Economist Nela Richardson, break down October’s latest jobs report on ‘Squawk Box’. For access to live and exclusive video from CNBC subscribe to CNBC PRO:

The U.S. job market snapped back in October, with nonfarm payrolls rising more than expected while the unemployment rate fell to 4.6%, the Labor Department reported Friday.

Nonfarm payrolls increased by 531,000 for the month, compared with the Dow Jones estimate of 450,000. The jobless rate had been expected to edge down to 4.7%.

Private payrolls were even stronger, rising 604,000 as a loss of 73,000 government jobs pulled down the headline number. October’s gains represented a sharp pickup from September, which gained 312,000 jobs after the initial Bureau of Labor Statistics estimate of 194,000 saw a substantial upward revision in Friday’s report.

The numbers helped allay concerns that rising inflation, a severe labor shortage and slowing economic growth would tamp down jobs creation.

“This is the kind of recovery we can get when we are not sidelined by a surge in Covid cases,” said Nick Bunker, economic research director at job placement site Indeed. “If this is the sort of job growth we will see in the next several months, we are on a solid path.”

Markets rallied strongly on the news, with the Dow up nearly 350 points in early trading and government bond yields mostly lower.

The critical leisure and hospitality sector led the way, adding 164,000 as Americans ventured out to eating and drinking establishments and went on vacations again as Covid numbers fell during the month. For 2021, the sector has reclaimed 2.4 million positions lost during the pandemic.

Other sectors posting solid gains included professional and business services (100,000), manufacturing (60,000), and transportation and warehousing (54,000). Construction added 44,000 positions while health care was up 37,000 and retail added 35,000.

Wages increased 0.4% for the month, in line with estimates, but rose 4.9% on a year-over-year basis, reflecting the inflationary pressures that have intensified through the year. The average work week edged lower by one-tenth of an hour to 34.7 hours.

The unemployment rate drop came with the labor force participation rate holding steady at 61.6%, still 1.7 percentage points below its February 2020 level before the pandemic declaration. That represents just shy of 3 million fewer Americans considered part of the workforce and is reflective of ongoing concerns about staffing levels.

“While the strength of employment was an encouraging sign that labor demand remains strong, labor supply remains very weak. The labor force rose by a muted 104,000, which is not even enough to even keep pace with population growth,” said Michael Pearce, senior U.S. economist at Capital Economics.

However, one metric that the Federal Reserve watches closely, the participation rate among so-called prime age workers 25 to 54, ticked higher to 81.7%.

At the same time, the survey of households showed job holders rising by 359,000, leaving the employment level about 4.7 million below its pre-pandemic level.

A separate measure of unemployment that incudes discouraged workers and those holding part-time jobs for economic reasons fell to 8.3% from 8.5%. That rate was 7% before the pandemic.

The report comes amid heightened concerns about the state of the labor market, particularly a chronic shortage that has left companies unable to fill positions to scale back production and cut hours of operation.

» Subscribe to CNBC TV:
» Subscribe to CNBC:
» Subscribe to CNBC Classic:

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30:

Connect with CNBC News Online
Get the latest news:
Follow CNBC on LinkedIn:
Follow CNBC News on Facebook:
Follow CNBC News on Twitter:
Follow CNBC News on Instagram:



Read Also

Leave a Reply

Your email address will not be published. Required fields are marked *

Responses (25)

  1. Leonard Sr.

    How is this good news? These people live in fantasy land

  2. Leonard Sr.

    lol what a joke!!!

  3. And how many left their jobs??

  4. Shane Wade

    Oh boy, out of 11 million!!! Way to go potato head

  5. ericinnc

    Duh, no jobs were actually created. Those are jobs people are returning to after being told to go home during shutdown!

  6. Jaden Alvarado

    I'm just saying in about 8 months it's 4.6%. Took Obama 8 years to hit 4.7%

  7. Alec Zachreson

    Can someone educate me? Does this number get offset by the number of people applying for unemployment insurance as well as the number of "discouraged workers" who lost unemployment but did not get a job? Or does this number simply state that the number of new jobs versus the number of people on unemployment ratio changed?

  8. Ni Pei You

    Covid-vaccine is an obstruction of covid virus to create new variant, it only able to hide the symptoms after get infected, at the same time to enhance your immunity system to against the virus temporarily like Morphine-Sulfate.
    Covid-19 is cumulative and permanently stay at human body's T-Cell then cause it malfunction to replicate, destroy and spread even you have fully recovered from covid infection or fully vaccinated. Peoples will die in covid one day when the immunity system become weak'"3

  9. Be Nice

    More low-wage jobs with no benefits are coming.

  10. Titan Man

    100% sure MAGA fans don't like these numbers, this has to be FAKE NEWS…Joe Biden, on no "The economy is going to tank" "He's going to destroy what Donald did" "Its the end of the country, we're all going to die", where are all of you attack dogs for Donald???

  11. Elijah Ellington

    The unemployment rate is more like 40-50% there was already 15-20% minimum unemployment and lazy bums not trying. 25-30% of Americans like me will not get that dangerous so called "vaccine" This is the main reason for unemployment and why the supply chain, hospitals, schools etc.. are record short staffed to the point of collapse.

  12. DariusDThorn

    Great Job Mr. President!!! They blame for all that goes wrong so now let’s celebrate you for the great news!!!

  13. People getting 3rd job to deal with inflation 😂

  14. eatright909


  15. TheRealAmenThefaceofthewordtherealword

    Sheeple believe it too every lie they told they fell for It

  16. TheRealAmenThefaceofthewordtherealword

    People fall for so easily these have become super pathological liars who will be buried by their own lies

  17. TheRealAmenThefaceofthewordtherealword

    You know they are lying they are lying through their teeth their lies have grown to great proportions the lies are out to snacks now their noses have gotten so long the noses will fall off and all their lies will collapse every lie they used to cover up a lie will come undone and be debunked

  18. Chad Stone

    Biden 2024

  19. M Harding

    Yeah okay buddy.

  20. Galaxy Walker

    Thank you Brandon

  21. Andrew Joseph Designs

    Because unemployment has ended in September so that's why unemployment is down . How many jobs were lost then subtract that to the 531K jobs made I bet it would be a negative .

  22. Rolls Royce Network

    Space laser people big mad right now. I’m searching for those Brandon comments

  23. splashmt99

    Go Biden!!!

  24. Michael Miles

    Thank you Brandon!! 🤣🤣

  25. Ruin Nation

    Not buying it