Employment Report: U.S. Job Market Beats Forecasts in October

The U.S. economy added 165,000 jobs in October, according to data released Friday by the Bureau of Labor Statistics. This figure was nearly three times the 59,000 jobs that economists surveyed by Dow Jones had predicted, as noted by CNBC. The strong hiring pace coincided with a slight drop in the unemployment rate, which fell from 4.2% in September to 4.1% in October.

The data also included upward revisions for the previous two months. The bureau adjusted August’s job gains up by 53,000, raising the total from 133,000 to 186,000. September’s gains were revised upward by 31,000, moving from 29,000 to 60,000. These changes indicate employers created 84,000 more positions over those two months than initially reported.

Professional and business services drove the largest share of October’s growth, with 70,000 new jobs. Health care followed with 42,000 additions. Transportation and warehousing added 25,000 jobs, while manufacturing contributed 19,000. Despite the overall improvement, the U-6 measure of unemployment, which includes discouraged workers and those working part time for economic reasons, increased from 7.6% to 7.9%.

Average hourly earnings rose 3.1% over the past year. This rate exceeded economist expectations but remained below the latest reported inflation figures. The report arrived three days after the midterm elections, offering a snapshot of the labor market during that period.

The next major data point is scheduled for release on Tuesday. The October consumer price report will provide details on how wage gains compare with inflation over the same timeframe.