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| Photo Credit: AP. |
The U.S. economy added 261,000 jobs in the month of October amid rising unemployment that rose two-thirds of a percentage point to 3.7%, data released by the Labor Department Friday showed.
The performance
of the economy exceeded anticipated growth despite persistent interest rate
hikes by the Federal Reserve in a bid to control rising inflation. The rise in
inflation as well as a weakening global economy and rising prices is exerting
pressures on the labor market.
The number
of adults working or looking for work reduced to 62.2% but wage earnings
particularly average hourly earnings grew by 4.7% over the past year, according
to the Washington Examiner. The wage earnings were an improvement on the 5
percent in September and 5.2 percent in August, according to The Hill.
But the
jobless rate rose to 306,000 in October leaving the unemployment rate 0.2
percentage points above its pre-pandemic level, according to The Hill.
On Average the
economy has added 400,000 jobs each month since the beginning of the year.
The Fed is
still struggling to bring down record inflation by raising interest rate, a
move that may slow the economy and possibly lead to recession, something they
are trying to avoid.
This week
the Federal Reserve raised its interest rate target by 75 basis point to raise
borrowing costs , according to the Washington Examiner.
“We’re
taking forceful steps to moderate demand so that it comes into better alignment
with supply. Our overarching focus is using our tools to bring inflation back
down to our 2% goal and to keep longer-term inflation expectations well
anchored,” Fed Chairman Jerome Powell said Wednesday, the Washington Examiner
reported. “Reducing inflation is likely to require a sustained period of
below-trend growth and some softening of labor-market conditions.”