US Job Growth Slows in October, Part-Time Workers Increase

The U.S. 💰Economy created the fewest jobs in five months in October and more Americans are working part time, the clearest evidence yet that the recovery from the pandemic recession was slowing as fiscal stimulus ends and new COVID-19 cases explode.

The Labor Department’s closely watched employment report on Friday also showed 3.6 million people were out of work for more then six months, underscoring the challenges the next president, whether it is incumbent Republican Donald Trump or Democrat Joe Biden, confronts to keep the 💰Economy growing as it heals from the deepest recession since the Great Depression.

Biden edged closer to winning the White House early on Friday as he took a narrow lead over Trump in the battleground state of Georgia. Trump on Thursday alleged fraud without providing evidence, filing lawsuits and calling for recounts in a race yet to be decided since polls closed on Tuesday.

Nonfarm payrolls increased by 638,000 jobs last month after rising by 672,000 in September. That was the smallest gain since the jobs recovery started in May and left employment 10.1 million below its peak in February. A 271,000 increase in leisure and hospitality jobs accounted for about two-fifths of the payrolls gain last month.

Employment in professional and business services increased by 208,000, with about half of the job gains in temporary help services. Government payrolls fell 268,000, weighed down by the departure of temporary workers hired for the 2020 Census and further job losses at cash-strapped state and local governments.

Economists polled by Reuters had forecast payrolls advancing by 600,000 jobs in October.

A contested election reduces the chances of another coronavirus rescue package from the government this year. Even if more fiscal policy is agreed on, it will likely be smaller than had been anticipated before the election.