The ongoing Boeing strike, which began on September 13, is shaking up the U.S. job market and leaving ripples across the economy. With over 33,000 machinists refusing to work, this strike comes at a critical time: Right before a pivotal U.S. jobs report, a presidential election, and a Federal Reserve meeting.

This labor action has drawn attention not just for its size but also for the far-reaching effects it may have on the aviation giant and the national economy.

As the Boeing machinists prepare for what has now been a seven-week standoff, the stakes are high. This is the first machinist strike since 2008, and it is already turning into a defining moment for both the company and its unionized workforce.

The Boeing Strike & Its Immediate Impact on Job Numbers

The ongoing Boeing strike is not just a labor issue anymore. It has become a critical factor influencing U.S. employment data. The strike’s timing means it will weigh heavily on October’s jobs report. Something that economists expect to show 100,000 new jobs added to the U.S. economy.

Telly / Analysts, including those at Bank of America, predict that the Boeing strike, along with the disruptions from recent hurricanes, could lower jobs by at least 50,000.

Federal Reserve Governor Christopher Waller acknowledged the strike’s significant yet temporary impact. He noted in a speech that it could cut 100,000 jobs from October’s figures. While this loss is expected to be short-lived, it could influence public perception of economic health, especially with the upcoming presidential election.

For the Federal Reserve, these disruptions complicate their decision-making as they weigh inflation concerns against employment trends.

Boeing’s Challenges Under CEO Kelly Ortberg

The strike comes at a time when Boeing is already facing severe challenges. Kelly Ortberg, who became CEO in August, inherited a company struggling with safety scandals, production issues, and financial instability. The Boeing strike has only added to these woes, further pressuring the company to resolve labor disputes.

However, Ortberg has made it clear that Boeing must make hard decisions to stay competitive. Earlier this month, he announced a plan to cut 10% of the company’s global workforce – about 17,000 jobs. These layoffs are part of his strategy to streamline operations and focus on Boeing’s core businesses.

Nonetheless, job-loss notices will not be issued until mid-November. This means that the full effects of these cuts will not show up in employment data for months.

What Is the Boeing Strike About?

The Boeing strike began after machinists overwhelmingly rejected a union-endorsed labor contract. Despite a proposed 35% wage increase, workers voted 64% against the agreement, arguing it fell short of their demands.

Boeing strike — MSN / The Boeing workers’ grievances are not just about pay. Many feel that Boeing’s management hasn’t done enough to address concerns about job security, benefits, and working conditions.

For a company still recovering from high-profile safety scandals, this strike underscores the importance of rebuilding trust—not just with customers but also with its own employees.

The Impacts of the Strike on the Aviation Industry

The Boeing strike is not happening in a vacuum. It is causing significant delays in the production of Boeing’s aircraft, which has broader implications for the aviation industry. Airlines that rely on Boeing planes for fleet expansion or replacements may face disruptions, leading to potential revenue losses and schedule changes.

For Boeing, the strike risks damaging its reputation further. Already under scrutiny for its handling of the 737 MAX safety crisis, the company can ill afford additional setbacks. Competitors like Airbus could capitalize on this turmoil, gaining an edge in the race for market dominance.

If the strike drags on, Boeing may find itself in an even tougher spot. Economists are closely watching how this strike influences consumer spending and economic growth. With job cuts looming and wages temporarily halted for striking workers, disposable incomes in affected regions could take a hit.