165,000 Jobs Added in October as Hiring Beats Forecasts

The U.S. economy added 165,000 jobs in October, a figure that nearly tripled the 59,000 gain economists had predicted. The Bureau of Labor Statistics released the report on Friday, marking a sharp acceleration in hiring activity following a softer September.

The labor market data arrived three days after the midterm elections. The bureau also adjusted previous months upward to reflect stronger performance. August job gains were revised up by 53,000 to 186,000, while September gains were revised up by 31,000 to 60,000. These changes mean employers created 84,000 more jobs in the two months preceding October than initially reported.

The headline unemployment rate fell from 4.2% in September to 4.1% in October. However, the U-6 measure, which includes discouraged workers and those working part time for economic reasons, rose from 7.6% to 7.9%.

Professional and business services drove the largest share of new employment, adding 70,000 positions. Health care followed with 42,000 jobs, while transportation and warehousing contributed 25,000 and manufacturing added 19,000.

Average hourly earnings increased 3.1% from a year earlier. This growth outpaced economic forecasts but remained below the most recent inflation figures. The October consumer price report is scheduled for release Tuesday, which will provide the latest data on price increases to compare against these wage gains.