U.S. employers add 165,000 jobs as unemployment rate hits 4.1%
Labor market surprises with robust job growth and falling unemployment, defying slowdown fears.
(Photo via NPR)
The U.S. labor market showed unexpected strength in October, with the economy adding 165,000 nonfarm payroll jobs. The figures, released Friday by the Bureau of Labor Statistics, surpassed the consensus forecast of 59,000 to 65,000 jobs.
Alongside the job gains, the national unemployment rate fell to 4.1% in October, down from 4.2% in September. The report also included upward revisions for August and September, which added a combined 84,000 jobs to previous estimates.
Wage growth also saw an uptick, with average hourly wages rising 0.4% during the month. Over the past 12 months, wages have increased by 3.1%.
Angelo Kourkafas, a senior global strategist at Edward Jones, described the data as a blowout report that exceeded expectations across payroll growth, revisions, and wage gains. Seema Shah, chief global strategist at Principal Asset Management, noted that the report serves as a rebuttal to concerns regarding a potential economic slowdown.
Following the release of the data, investors have increased the likelihood of a Federal Reserve interest rate hike during the central bank's policy meeting in December 2026. The next employment report from the Bureau of Labor Statistics is scheduled for release on Dec. 4.