Job growth in America slowed in October and the unemployment rate ticked higher as auto strikes weighed on the labor market last month.

Nonfarm payroll growth totaled 150,000 in October, data from the Bureau of Labor Statistics showed Friday, while the unemployment rate rose to 3.9% from 3.8%. The unemployment rate now stands at its highest level since January 2022.

Economists surveyed by Bloomberg expected job gains to tally 180,000 with unemployment holding steady from the prior month.

In its report, the BLS noted employment in manufacturing fell by 35,000 in October largely due to strike activity, with labor actions from the United Auto Workers (UAW) at plants for three major auto manufacturers weighing on hiring. Earlier this week, the UAW reached a tentative deal with the automakers to end the strikes.

October's report follows a robust September reading, though that data was revised lower on Friday by 39,000 jobs.

"Some of [October's] weakness will reverse next month with the UAW strike ending, but there is more weakness beyond that," Jefferies US economist Thomas Simons wrote in a note to clients after the report.

"This data fits in line with the trend that had been in place before the surprisingly strong September print."

Wages, a closely watched indicator for inflation and gauging how much leverage workers have in the labor market, rose less than expected last month. Wages increased 0.2% on a monthly basis and 4.1% over last year; economists had expected wages to rise 0.3% over last month and 4% over last year.

The labor force participation rate decreased to 62.7% from 62.8% the month prior. Average weekly hours also ticked down slightly, to 34.3 from 34.4 in September.

The largest jobs increases in Friday's report were seen in healthcare, where 58,000 jobs were added. Employment in government rose by 51,000, reaching its pre-pandemic level.

This jobs report comes at a crucial time for markets, as stocks have rallied since the Federal Reserve's latest policy decision. Investors are largely betting that Fed Chair Jerome Powell's rhetoric on Wednesday means the Fed won't hike in December, and may be done raising rates altogether for this cycle.

Powell acknowledged in a press conference on Wednesday that some slowing in the labor market will likely be required for inflation to continue its downward trajectory.

"It is still likely to be true — not a certainty, but likely — that we will need to see some slower growth and some softening ... in labor market conditions to fully restore price stability," Powell said.

As of Friday morning, markets were pricing in a roughly 90% chance the Fed doesn't raise rates at its next meeting, per the CME FedWatch Tool, up about 10 percentage points from the day prior.

"Powell did not seem particularly eager to raise rates again at the December meeting when he made his post-FOMC comments on Wednesday," Simons added Friday, "and nothing here says that he should be changing his mind."

Josh Schafer is a reporter for Yahoo Finance.

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