In October, America’s job growth decelerated, and the unemployment rate nudged up, partly due to the impact of strikes in the automotive sector on the labor market.

The Bureau of Labor Statistics reported that nonfarm payroll increases were at 150,000 for the month, while the unemployment rate inched up to 3.9% from the previous month’s 3.8%, marking the highest unemployment rate since January of the previous year.

Projections by economists polled by Bloomberg had anticipated a higher job creation number of 180,000 and an unchanged unemployment rate from September.

According to the BLS, manufacturing employment dipped by 35,000 in October, largely attributable to strikes. Notably, industrial action by United Auto Workers (UAW) at facilities of three leading car producers was a significant factor. The UAW had, earlier in the week, reached a provisional agreement that promised to conclude the strikes.

The October figures represented a slowdown from a strong September, though revisions made that month’s job additions lower by 39,000.

Thomas Simons, an economist at Jefferies in the US, suggested in client correspondence that while some of the downturn from the UAW strike might recover in the following month, broader underlying weaknesses remain. The current figures align with pre-September trends, which were unexpectedly robust.

Wage growth, an important measure of inflation and the labor market’s balance of power, was less than predicted. Wages rose by 0.2% month-over-month and saw an annual increase of 4.1%, against expectations of a 0.3% monthly and 4% annual rise.

There was a minor decline in labor force participation, down to 62.7% from the preceding month’s 62.8%. Average weekly hours worked also decreased marginally from 34.4 in September to 34.3.

The report highlighted substantial employment gains in healthcare, with 58,000 new jobs, and government employment, which increased by 51,000, returning to its level before the pandemic.