Chart of the Day: A Disappointing Jobs Report in October

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The American economy added 178,000 new jobs last month, 90,000 of which were needed to keep up with population growth. This means that net job growth clocked in at a modest 88,000 jobs. At first glance this seems OK, but it looks worse when you drill below the surface.

The headline unemployment rate spiked down to 4.6 percent, which is very close to a record low for the past 40 years. Unfortunately this is largely because a stunning 446,000 people dropped out of the labor force, not because a huge number of people got jobs. In fact, the labor participation rate went down, from 62.8 percent to 62.7 percent. Given this, it’s not surprising that hourly earnings of production and nonsupervisory employees were flat. If the labor market were really tightening, wages would be going up.

The general reaction to this jobs report seems to be that it shows “decent, steady growth.” I don’t agree. That is what the headline unemployment number shows, but this mostly suggests that the headline unemployment number is becoming less and less reliable as a good measure of the jobs picture. This was a disappointing report.

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is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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