On Friday, the Labor Department announced that the US economy has added another: 531,000 non-farm payroll jobs in the month of October, more than the Dow Jones estimate of 450,000.
The US job market recovery seems to be gaining momentum and unemployment has fallen to 4.6% nationwide, the lowest figure since May 2020.
Job market growth has been quite strong across the board, but it was the areas hardest hit by the pandemic that saw the biggest rebound in fortune. The leisure and hospitality, manufacturing and transportation and warehousing industries lead the profit.
BREAKING: The US economy added 531,000 jobs in October — better than expectations and a major recovery from September.
The unemployment rate drops to 4.6 (from 6.3% in January)
**US has restored ~80% of jobs lost during the pandemic**
— Heather Long (@byHeatherLong) Nov 5, 2021
The October jobs report will be a welcome relief to President Joe Biden after two months of lower-than-expected job creation. In fact, this is the first month since july that the actual number did not fall below estimates.
All of this means that the US economy appears to be in an uptrend, giving some lingering hopes of a fourth stimulus check from the federal government seem even further away.
Biden: ‘We are on the right track’
Shortly after the October jobs report was announced, Biden was quick to point to the job growth as a sign that his administration’s economic and social policies were working.
In a speech at the White House, the president said:America goes back to work. Our economy is starting to work for more Americans.”
He added: “We have laid the foundation for this recovery with my… American rescue plan that Congress passed at the beginning of my term in office. It put money in the pockets of working families, it gave families with children a tax cut every month, it helped keep small businesses afloat in the dark days earlier this year and provided the means to launch one of the fastest mass vaccination programs ever.”
These comments are particularly sharp given the ongoing congressional negotiations over the future of its Build Back Better legislative agenda. Biden has already been forced to make significant concessions to moderate Democrats such as sen. Joe Manchin and sen. Kyrsten Sinema at the table, and there are concerns that he won’t be able to vote on the proposals until the end of the month.
Biden’s domestic policy so far has been governed by two huge spending proposals: the US bailout passed in March; and now the reconciliation package with two bills that is still the subject of discussions in Washington.
The president hopes evidence of the former’s success will help build support for the latter.