The U.S. economy lost 5,000 jobs in October and saw its jobless rate rise to 5.7%.

CIBC World Markets says that the “headlines on US labor markets were only slightly less spooky than Halloween fears, but the total 5,000 in job losses came right where we don’t like to see them in terms of projecting what lies ahead.”

CIBC says that the details in the report were not encouraging, noting that the goods sector was responsible for the decline. “Manufacturing job losses have now been accelerating over the past three months, a reversal from signs of improvement earlier in the year. Total hours worked in manufacturing fell 0.9% in October, suggesting a third consecutive monthly decline in industrial production. The economy isn’t in recession, but the industrial sector is suffering a double-dip, albeit a short one so far.”

TD Bank also sees the report as a weak one. “There were also two clear negatives in the report. First, wage growth — which has helped keep consumer spending in the U.S. resilient in spite of the weak labour market — is now slowing. Second, aggregate hours worked fell by 0.4 per cent in October. Together, these trends point to a significant slowdown in consumer spending in the fourth quarter, which will drag GDP growth down along with it.”

BMO Nesbitt Burns says that the U.S. employment data were soft in October, but not terrible, “as hiring remains far, far below trend.”

RBC Financial Group economists are more upbeat. They say, “This report is unlikely to change the market perception that the Federal Reserve will reduce rates. At the same time, however, it also paints the picture of a labour market on a holding pattern in an environment of rising productivity, falling unit labour costs and subdued inflationary pressures, hardly the picture of an economy in dire straits.”

“U.S. firms continue to remain cautious on the job front. While this report does not give the Fed a smoking gun, other reports do support arguments in favour of a rate cut on November 6,” says Nesbitt.