October Jobs Report Beats Forecasts: 165,000 Added, Unemployment Down to 4.1%
Hiring came in far above what economists expected, and the summer months were revised higher. The strong number gives the Federal Reserve room to keep its focus on inflation.
The American economy added 165,000 jobs in October, the Bureau of Labor Statistics said Friday morning. Economists polled by Reuters had expected 65,000. It was more than triple the average monthly gain of 48,000 over the past year.
The unemployment rate dipped to 4.1% from 4.2% in September. The number of unemployed people, 7.1 million, changed little. The rate has stayed in a narrow range of 4.1% to 4.3% since March.
The summer months came in stronger than first reported. August was revised up from 133,000 jobs to 186,000. September went from 29,000 to 60,000. Together, the revisions added 84,000 jobs to the earlier totals.
Professional and business services led the gains, adding 70,000 jobs. Health care added 42,000, with hospitals up 16,000. Transportation and warehousing added 25,000, most of it couriers and messengers. Manufacturing added 19,000.
Pay rose 14 cents an hour to $38.00, up 3.1% over the year. The average workweek held at 34.4 hours. But part-time work for economic reasons jumped by 339,000 to 4.8 million. Those are people who wanted full-time work and could not find it.
What it means for the Fed
The strong number gives the Federal Reserve more room to focus on inflation, Reuters reported. The war in the Middle East has pushed energy prices up, and that is where the Fed’s attention is now. Treasury yields rose after the release, according to Reuters.
The next big number comes Tuesday, when the Labor Department releases October inflation data.
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