U.S. Employers Added 165,000 Jobs in October as Unemployment Fell to 4.1%
Employers added 165,000 jobs in October, more than double the 65,000 economists expected, and the unemployment rate slipped to 4.1%, the Labor Department reported Friday.
U.S. employers added 165,000 jobs in October, the Labor Department reported Friday, more than double the 65,000 gain economists had forecast in a Reuters poll. The unemployment rate slipped to 4.1% from 4.2% in September.
The report also revised the prior two months higher. September’s gain was raised to 60,000 from 29,000, and August’s to 186,000 from 133,000, a combined 84,000 more jobs than first reported. Employers have now added an average of 137,000 jobs a month over the past three months.
Where the jobs came from
Professional and business services led the gains with 70,000 jobs, well above its average monthly gain of 15,000 over the previous year. Health care added 42,000 jobs, and manufacturing added 19,000, with gains in computer and electronic products and primary metals, according to the Wall Street Journal.
Average hourly earnings rose 14 cents to $38.00 in October, up 3.1% from a year earlier. The labor force participation rate inched up to 61.9% from 61.8% in September.
What it means for the Fed
The Federal Reserve left its benchmark interest rate in the 3.75% to 4.00% range last week. After Friday’s report, traders put the odds of a rate hike at the Fed’s December meeting at about 73%, according to the CME FedWatch tool cited by Barron’s. The October consumer inflation report, due Tuesday, could offer more clues on the course of monetary policy in early 2027.
A separate report from ADP, released Wednesday, found private employers added 86,000 jobs in October. Gross domestic product grew at a 3.4% annualized rate in the third quarter, fueled by consumer spending and business investment in artificial intelligence, according to Reuters.
Reporting based on coverage by Reuters, The Wall Street Journal, USA Today and Barron’s.
