Job creation in October was strong across almost all sectors as recruiting in industries as diverse as restaurants and auto parts manufacturers helped the broader US economy recover from a late summer lull.
Robust hospitality hires again helped the leisure and hospitality sectors top the month’s employment numbers. Employers added nearly 120,000 cooks, waiters and other restaurant workers to increase the total leisure sector by 164,000 for the month.
Recreation and hospitality employment has increased 2.4 million so far in 2021, although it is still down 1.4 million, or 8.2%, since February 2020.
The diversified professional and business services sector also had some of the healthiest hiring numbers in October 2021. Employers added 100,000 jobs in this industry, while management and technical consulting firms added nearly 14,000 jobs, scientific research and development by about 6,000, and legal services up just under 5,000.
Headlines from October’s job report showed that the U.S. economy created 531,000 jobs last month, beating the estimate of 450,000. The unemployment rate fell to 4.6%, although many economists attribute the lower figure to the fact that fewer workers looked for work during the time after Covid-19.
“Notable increases came from manufacturing industries such as construction and manufacturing, a sign that the recovery is penetrating industries beyond the home-based segments of the economy,” said Peter Essele, Commonwealth’s vice president of investment management and research, in an email -Explanation.
“Transportation and commerce also grew strongly, which could add to supply chain bottlenecks before the holiday shopping season,” he added. “All in all, the employment figures should be seen as a possible development, especially as the economy continues to wean itself from fiscal and monetary stimuli.”
As strong as the attitudes were in the service sector, the US commodity manufacturing side had a strong month. Wall Street has been keeping a close eye on the construction and manufacturing industries for signs of new hires that could ease supply chain disruptions just before the end of the year.
Manufacturers, who created 60,000 jobs last month, have been boosted by transportation equipment manufacturers. Companies that manufacture motor vehicles, motor vehicle bodies and trailers, and motor vehicle parts employ 27,700 people.
The construction industry welcomed 44,000 workers in October thanks to the hiring of non-residential specialist retailers. Civil engineering increased by 12,100.
Transportation and warehousing, a critical component of the U.S. supply chain, added 54,400 employees. Air traffic increased by 9,200, transit and ground traffic by 15,800 and warehousing by 20,200.
The public sector was the biggest straggler this month as the number of civil servants fell by a net 73,000. Most of those losses were the decline in state and local education, which fell by 21,500 and 43,400, respectively.
– CNBC’s Nate Rattner contributed to the coverage.
Did you like this article?
For exclusive stock selection, investment ideas and global CNBC livestream
Sign up for CNBC Pro
Start your free trial now