Recruitment pace of U.S. businesses slowed down in October to the slowest since 2020, however, the unemployment rate remained low in this month hit hard by severe hurricanes and large-scale strikes.

The US Bureau of Labor Statistics reported on Friday that non-farm employment increased by 0.012 million last month, while the hiring situation in the previous two months was also weaker than initially estimated. All of these indicate a continued cooling of the underlying labor market.

The unemployment rate remained at 4.1%, with average hourly wages slightly on the rise.

The Bureau of Labor Statistics stated that the two hurricanes that hit the southeast may have affected recruitment in some industries, but the net impact on last month's employment, working hours, or income changes cannot be quantified. However, the unemployment rate was not significantly affected. Friday's report also showed a significant decrease in manufacturing employment, largely reflecting October's strike activities.

In conclusion, the latest data indicates that the labor market remains soft after excluding temporary factors. This is the final important economic report before the US presidential election, and is expected to prompt the Federal Reserve to proceed with interest rate cuts next week as planned.

"While it is difficult to fully analyze how much of it is noise and how much is a signal, I do see enough weakness that suggests the job market is still stumbling," said Sarah House, senior economist at Wells Fargo & Co.