October Jobs Beat Expectations

Washington, D.C. The U.S. economy created 165,000 jobs in October, according to a report from the Bureau of Labor Statistics released Friday. This figure was seasonally adjusted and exceeded the 59,000 jobs that economists surveyed by Dow Jones had predicted, per CNBC.

The unemployment rate dropped to 4.1% from 4.2% in September. However, the U-6 rate, which includes discouraged workers and those working part time for economic reasons, increased from 7.6% to 7.9%. The data also included upward revisions for previous months. August job gains were revised up by 53,000 to 186,000, while September gains rose by 31,000 to 60,000. These changes mean employers added 84,000 more jobs in those two months than initially reported.

Professional and business services led the hiring trend with 70,000 new positions. Health care followed with 42,000 jobs, while transportation and warehousing added 25,000. Manufacturing contributed 19,000 new roles. Average hourly earnings rose 3.1% from a year earlier, a figure that surpassed economist expectations but lagged behind the most recent inflation reports.

The report arrived three days after the midterm elections, highlighting stronger job growth in the months leading up to the vote. October’s consumer price report is scheduled for Tuesday, which will provide further context on how wage gains compare with inflation during the same period.