US Adds 165,000 Jobs in October as Unemployment Falls to 4.1%
U.S. employers added 165,000 jobs in October and the unemployment rate fell to 4.1%. The Bureau of Labor Statistics said Friday that nonfarm payrolls, jobs outside farming, rose by 165,000 and the unemployment rate slipped 0.1 percentage point from 4.2% in September.
The gain was far above market expectations. Economists surveyed by Reuters expected 65,000 new jobs and the unemployment rate to stay at 4.2%, while another survey put the forecast at 59,000. The actual gain was more than two and a half times the forecast. It was also more than double September’s revised gain of 60,000.
Wages also rose faster than expected. Average hourly earnings rose 0.4% in October from the month before and 3.1% from a year earlier. The market had expected a 0.3% monthly rise. Average weekly hours were unchanged at 34.4.
The labor force grew slightly. The labor force participation rate, the share of the working-age population that is working or looking for work, was 61.9%, up slightly from 61.8% in September. The broader measure of unemployment, which includes discouraged workers and people working part time involuntarily, rose to 7.9% from 7.6% in September. The number of people working part time for economic reasons rose by 339,000 to 4.8 million.
The prior two months were revised up. August’s gain was revised up by 53,000 to 186,000 and September’s by 31,000 to 60,000. Together the two months added 84,000 more jobs than previously reported.
By sector, professional and business services led the gains with 70,000 jobs, far above the 15,000 monthly average of the past 12 months. Health care added 42,000 and transportation and warehousing 25,000, while manufacturing added 19,000. Government added 6,000, little change.
Compared with the 48,000 monthly average gain of the past 12 months, October’s figure was more than triple. September’s gain was originally reported at 29,000, and Reuters reported that a calendar effect from the late Labor Day holiday played a part.
The next data points are in December. The November jobs report comes out Dec. 4 and the Federal Reserve meets Dec. 8-9. The Fed held its benchmark rate at 3.75% to 4.00% on Oct. 28. Economists expect a rate hike in December, given the strong jobs data.