U.S. gains 261,000 jobs in October; unemployment rate inches down

WASHINGTON — Nonfarm payroll employment rose by 261,000 jobs in October 2017, according to the latest figures from the Bureau of Labor Statistics (BLS).

The unemployment rate fell 0.1 percentage point, to 4.1 percent, the BLS said in a report issued Nov. 3.

The big leap in employment was partly because of an increase of 89,000 jobs in food services and drinking places. This offset a September loss in that sector of 98,000 jobs that was largely caused by the combined effects of Hurricanes Harvey and Irma, the agency said.

Professional and business services enjoyed a gain of 50,000 jobs during the month, while manufacturing increased by 24,000 jobs.

However, construction, wholesale and retail trade, and transportation and warehousing changed little during the month, it said.

The BLS figures match fairly well with those of the payroll services firm ADP Inc., which issued its October employment report Nov. 1

According to ADP, private sector employment grew by 235,000 jobs in October.

Job gains were divided more or less evenly as judged by company size, according to ADP. Small businesses (one to 49 employees) gained 79,000 jobs; medium businesses (50 to 499 employees), 66,000 jobs; and large businesses (500 employees or more), 90,000 jobs, the company said.

Professional/business services enjoyed the biggest gains, with 109,000 jobs, ADP said. Construction grew by 62,000 jobs, and manufacturing by 22,000, it said.

However, trade/transportation/utilities lost 50,000 jobs, according to ADP.

Franchise employment soared by 30,600 jobs, including 26,600 in restaurants, the company said. Auto dealers and parts stores hired 2,100 new employees, it said

Small businesses reported greater employment activity in October, according to the National Federation of Independent Businesses' (NFIB) latest NFIB Jobs Report.

Small business owners are increasing compensation at a rate not seen since December 2000, said NFIB Chief Economist William Dunkelberg.

"October's report shows a strong jobs month buoyed by the increase in demand for workers to deal with the hurricane damage," Mr. Dunkelberg said.

Fifty-nine percent of employers reported listing job vacancies in October, but 52 percent said they couldn't find qualified workers, according to Mr. Dunkelberg. Twenty percent of small business owners said finding qualified workers is their number one concern, he said.

Scott Paul, president of the Alliance for American Manufacturing (AAM), said he was pleased with the job gains in manufacturing, but concerned over the $29.9 billion trade deficit with China for the month of September alone.

"Factory work picked up in October, but the gains may be temporary," Mr. Paul said.

"I'm concerned about job losses in autos and primary metals like steel," he said. "The trade deficit is running higher than last year, and imports are up 20 percent in steel alone."

Mr. Paul urged President Trump, who left Nov. 3 on an extended trip to Asia, to produce "some real results" for U.S. workers in the face of large trade deficits with China, Japan, South Korea and Vietnam.