Job growth exceeded expectations in October, new data showed Friday, as the U.S. economy added 165,000 jobs.
The unemployment rate fell to 4.1% from 4.2%, according to data from the Bureau of Labor Statistics.
Job growth over the previous two months was stronger than initially reported, with a total of 84,000 jobs added: August was revised upwards from 53,000 to 186,000; and gains in September totaled 60,000, up from 29,000.
Consensus forecasts for October called for monthly gains of 65,000 jobs and an unemployment rate of 4.2%, according to FactSet estimates.
Wage growth slowed on an annual basis to 3.1% from an upwardly revised 3.2%. Americans’ wage gains are hovering around pre-pandemic levels; However, this is not the case for inflation: prices have risen more rapidly in recent months, driven up by a war-induced energy shock.
These better-than-expected hires offer some reassurance for an economy entering a new political chapter after Democrats won the midterm elections.
The cost of living remains a major concern for households, as employers contend with changing demographics, rapid adoption of AI, continued high inflation and war with Iran. And a job market that appears healthy isn’t necessarily the same for workers.
Stock futures were mixed after the jobs report. S&P 500 futures rose 0.2%. Nasdaq 100 futures rose 1.5%, rebounding after a sharp sell-off in technology products on Thursday. Dow Jones futures, meanwhile, were down 450 points, or 0.87%.
This story is developing and will be updated.
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