Economists polled by Reuters had forecast a payroll increase by 450,000 jobs. Estimates ranged from a low of 125,000 positions to a high of 755,000.
The worker shortage persisted, even as federally funded unemployment benefits ended in early September and schools reopened for face-to-face classes.
Still, the report added to rising consumer confidence and service sector activity to describe a more favorable picture of the economy, after the Delta variant of the coronavirus and economy-wide shortages of goods constrained growth. in the third trimester at its slowest pace in more than a year.
The unemployment rate in October fell to 4.6% from 4.8% in September. While companies desperately seek to hire people, millions remain unemployed and stay out of the workforce.
This disconnection from the job market has been attributed to care needs during the pandemic, fears of contracting the coronavirus, early retirements, massive savings and career changes, as well as the aging population and unemployment benefits deployed in the worst moment of the pandemic.
Since many people who moved out of cities during the pandemic have yet to return, there could also be a mismatch between job vacancies and place of residence.
There were 10.4 million unfilled jobs at the end of August. About five million people have left the workforce since the pandemic began in the United States.
Federal Reserve Chairman Jerome Powell told reporters Wednesday that “these impediments to the labor supply should diminish with further progress in containing the virus, supporting gains in employment and economic activity.”
The Fed announced that this month it would begin to reduce the amount of money it is pumping into the economy through monthly bond purchases.
There is concern that a White House staff vaccination order, which goes into effect on January 4 and applies to contractors and companies with 100 or more employees linked to the federal government, will exacerbate the shortage of workers.
There has also been an increase in strikes as workers take advantage of the tight labor market to demand better wages and conditions.
Businesses’ scramble for workers continued to drive wage growth, which along with record savings should help prop up consumer spending during the year-end holiday season, despite persistent inflation.
