October payroll report shows hiring surge well above forecasts

The U.S. economy added 165,000 jobs in October, a figure that significantly exceeded the 59,000 jobs economists predicted.

The Bureau of Labor Statistics released the data on Friday, marking a sharp acceleration in hiring activity. The headline unemployment rate declined from 4.2% in September to 4.1% in October. However, the broader U-6 measure, which includes part-time workers for economic reasons, rose from 7.6% to 7.9%.

The agency also adjusted previous data upward. August job gains were revised from 133,000 to 186,000, and September gains were revised from 29,000 to 60,000. These changes add 84,000 jobs to the total for those two months. The report arrived three days after the midterm elections, offering a clearer picture of labor market conditions during that period.

Professional and business services drove the October increase, accounting for 70,000 of the new positions. Health care followed with 42,000 new jobs, while transportation and warehousing added 25,000. Manufacturing contributed 19,000 jobs to the monthly total.

Average hourly earnings increased by 3.1% over the past year. This growth rate outpaced analyst expectations, although it remains below the most recent inflation figures. The October consumer price report is scheduled for release on Tuesday, which will provide a direct comparison between wage growth and price changes.