October Payrolls Jump 165,000 as Hiring Rebounds

U.S. employers added 165,000 jobs in October, the Bureau of Labor Statistics reported on Friday. The figure far exceeded the 59,000 jobs that economists surveyed by Dow Jones had predicted. The unemployment rate declined from 4.2% in September to 4.1% in October.

The agency also adjusted prior monthly data upward. August job gains were revised from 133,000 to 186,000, an increase of 53,000. September figures were revised from 29,000 to 60,000, a gain of 31,000. These changes indicate that businesses created 84,000 more jobs in the two months before the vote than initially recorded. The report arrived three days after the midterm elections.

Sector data showed professional and business services drove the strongest growth with 70,000 new positions. Health care followed with 42,000 additions. Transportation and warehousing added 25,000 jobs, while manufacturing contributed 19,000. Average hourly earnings increased 3.1% over the previous year. This wage growth outpaced analyst forecasts but remained below the most recent inflation figures.

One measure of underemployment, the U-6 rate, moved in the opposite direction. It climbed from 7.6% to 7.9%. This metric includes individuals who are discouraged from looking for work and those who hold part-time jobs for economic reasons. The rise suggests that not all workers are securing full-time positions despite the lower headline unemployment figure.

The next major economic data point arrives Tuesday. The October consumer price report will detail how current wage gains compare with price increases over the same period. This data will provide a clearer picture of real income changes for households.