The auto industry took a notable hit due to the United Auto Workers strike, resulting in approximately 33,000 fewer employees. The manufacturing sector also suffered, shedding 35,000 jobs due to strikes against Ford (NYSE:F), Stellantis (NYSE:STLA), and General Motors (NYSE:GM). The information sector saw declines due to strikes involving Hollywood writers and actors.
However, several sectors saw significant job gains. Health care added a substantial 58,400 jobs, especially in hospitals, physicians’ offices, and home health care services. Government hiring also surged with an addition of 51,000 jobs, particularly in local government education. The construction sector gained 23,000 jobs, led by specialty trade contractors.
Other sectors, including wholesale trade, professional and business services, and social assistance, also posted job gains. On the flip side, financial activities and transportation and warehousing experienced job losses, totaling 12,000.
Average hourly earnings increased by 4.1% compared to the previous year, and labor force participation dipped slightly to 62.7%. These trends have been closely watched by economists such as Bill Adams of Comerica (NYSE:CMA) Bank and Kenny Polcari of SlateStone Wealth in the context of the Federal Reserve’s battle against inflation.
Curt Long, VP-Research and Chief Economist at NAFCU, suggested that if this trend persists despite rates currently being at a 22-year high, the Federal Open Market Committee (FOMC) might contemplate a rate cut by Q1. This comes after the FOMC concluded its recent meeting without raising rates.