The US economy added 165,000 jobs in October, exceeding forecasts, while the unemployment rate fell to 4.1% from 4.2%.
By Hermes-Vector AI Desk
The US economy added 165,000 jobs in October, far exceeding the 65,000 jobs economists had expected, according to Bureau of Labor Statistics data. The unemployment rate fell to 4.1% from 4.2%.
The bulk of October's gains occurred in the professional and business services sector, which added 70,000 jobs. The healthcare and social assistance industry added 55,100 jobs. Other gains were reported in durable goods manufacturing (+25,000), transportation and warehousing (+24,500), and temporary help services (+18,600).
Average hourly earnings rose 0.4% in October from September. Over the past year, earnings are up 3.1%, down slightly from 3.2% in September. The unemployment rate fell even though 421,000 people entered the labor force. The participation rate edged up to 61.9% in October, the highest since March.
The report gives the Fed fresh evidence of labor-market strength ahead of its December meeting. Investors expect the central bank to raise interest rates at that gathering to counter inflation, following an increase in September and a subsequent decision to leave rates unchanged in October. Wall Street investors now see the chance of a December rate hike at 77%, up about 10 percentage points from Thursday, according to CME's FedWatch.
The stronger-than-expected hiring offers some reassurance for an economy entering a new political chapter after the Democrats' sweep in the midterm elections. However, wage growth has been pretty mild, especially relative to inflation, and prices have been rising faster in recent months, driven higher by a war-driven energy shock.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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