In a major economic blow just days before the upcoming election, October’s job report showed the economy slowing nearly to a halt, adding only 12,000 jobs.

This jobs report is a catastrophe and definitively reveals how badly Kamala Harris broke our economy.

In a single month, Kamala’s failed economic agenda wiped out nearly 30,000 private sector jobs and nearly 50,000 manufacturing jobs. Working families are being ripped off by… pic.twitter.com/NIWr7cUzB0

— Karoline Leavitt (@kleavittnh) November 1, 2024

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As reported by The Washington Examiner, the unemployment rate, which held steady at 4.1%, reflected the most sluggish job growth since 2020, a stark contrast to investor expectations of around 108,000 new jobs. The dip is attributed partly to disruptions from Hurricane Milton and a Boeing strike, though experts argue the poor results go beyond these issues.

Dan North, senior economist at Allianz Trade Americas, weighed in on the underwhelming report. “That’s pretty weak. So it is a big miss to the downside,” North shared with the Washington Examiner, adding that he expects the Federal Reserve will now feel pressured to cut rates next week.

“I think that’s pretty well baked. The markets have been expecting that for so long.” For North, the report indicates a faltering economy despite recent Federal Reserve moves aimed at staving off a downturn.

October’s sluggish job growth poses a significant challenge for Vice President Kamala Harris as she heads into an incredibly tight election against former President Donald Trump.

Harris, who is tied to President Joe Biden’s administration and the economic landscape it shaped, faces scrutiny from voters unhappy with current economic conditions.

Just 12,000 (not a typo) jobs created in the entire country last month.

It’s the smallest job gain in years. Economists expected gains of upwards of 100,000. https://t.co/lPmIiFkF2x

— Sunny (@sunnyright) November 1, 2024

So, it gets worse. Private sector payrolls contracted by 28,000 in October. Economists predicted they would rise by 90,000.

All of the jobs “created” were by the government. So in a way, they are fake jobs because they are costing productive Americans taxpayer money. https://t.co/yrzfUhKKzy

— Kyle Becker (@kylenabecker) November 1, 2024

Polls indicate a highly competitive race in critical swing states, making any news with economic implications a possible tipping point in voter perception.

The October report could compel the Federal Reserve to reduce interest rates once again, with a quarter-point cut expected next week. The Fed already cut rates by half a percentage point in September, a historically large move, hoping to spur economic activity amid concerns about a possible recession.

Should the Fed proceed with another cut, they aim to drive household and business spending higher, hoping to stave off further economic weakness.

The October figures suggest that the U.S. labor market could be reaching a turning point, though analysts advise not to read too heavily into a single report.

October’s three-month moving average for job growth plummeted to just 104,000—below the 112,000 required to maintain the unemployment rate, according to the Federal Reserve Bank of Atlanta. Additionally, some analysts believe as many as 200,000 new jobs per month may be needed, factoring in recent immigration rates.

Despite concerns, the report indicates that the job market has sidestepped a major recession trigger known as the Sahm Rule, which forecasts recessions when the unemployment rate’s three-month moving average climbs half a percentage point above its lowest point over the last year.

This rule had hinted at a recession recently but has now settled, providing temporary reassurance.

In industry-specific news, the leisure and hospitality sector has finally rebounded to employment levels seen before the pandemic, though the construction sector remains robust even with high mortgage rates and a lagging housing market.

Economists are watching closely for any signs of weakening in these areas, especially construction, where a large backlog of multifamily housing projects has buoyed employment numbers.

October’s household survey highlights mixed trends in unemployment rates by race. White workers saw a slight increase in unemployment, while rates for Asian workers declined. Unemployment across racial groups remains near historic lows, though it has edged upward in recent months.