The U.S. job market likely bounced back last month from a disappointing September. Layoffs are low, and most Americans enjoy unusual job security.
Yet the American economy and job market have proven resilient in the face of a series of shocks — Trump’s double-digit taxes on imports and the war with Iran, which has driven U.S. gasoline prices above $4 a gallon and pinched family budgets. After taking inflation into account, average hourly earnings fell 0.7% in September – the sixth straight year-over-year drop and one explanation for voters’ fury at the polls Tuesday. Because baby boomer retirements and Trump’s immigration crackdown mean fewer people are competing for work, that is.
But hiring has probably remained too modest to deliver much relief to those looking for work. And wage gains haven’t been keeping up with persistently high inflation. The jobs report arrives three days after voters handed a stunning defeat to President Donald Trump and his Republican Party in midterm elections. Frustrated with the state of the economy — and especially the high cost of living – Americans handed full control of the U.S. Congress to the Democrats. The United States doesn’t need as many new jobs as it once did to keep the unemployment rate from rising. Meanwhile, rising prices have pinched pay for millions of Americans.
