Posted by: R Murray
The US added 165,000 jobs in October, blowing past economists' expectations, as the labor market showed strength despite the Federal Reserve's recent rate hikes.
The unemployment rate ticked down to 4.1% amid a slight increase in labor force participation. September's underwhelming jobs report of 29,000 additions was also revised upward to 60,000 jobs.
"Consistent with prior, more partial indicators of the US labor market, the October Jobs Report came in very strong, across the board," economist Mohamed El-Erain posted on X.
Heather Long, chief economist at Navy Federal Credit Union, deemed the results "a blowout," in [a post on X](
View X post or video on X ↗
Economists surveyed by Bloomberg projected a gain of about 70,000 jobs in October and saw the unemployment rate holding steady.
Wage growth increased 0.4% from September, better than expectations for 0.3% month-over-month growth. Annual earnings rose 3.1%, beating expectations, but likely still lower than the current rate of inflation.
Employers added jobs in a number of sectors of the economy. Professional and business services, which had been seen as more vulnerable to artificial intelligence-related disruptions, added 70,000 roles. Healthcare, long a strong spot for job growth, added a higher-than-average 42,000 positions.
Transportation and warehousing jobs rose by 25,000, and manufacturing continued to show strength with 19,000 additions.
The solid report will likely give the Federal Reserve more confidence to move forward with another rate hike in December. The central bank will also consider November jobs data and October's inflation figures before its Dec. 9 rate decision. Traders currently see a 73% chance of a 25-basis-point rate hike next month, up slightly from 67% on Thursday, according to CME FedWatch.