From Straight Arrow · · 2m
US Adds 165,000 Jobs in October
US economy adds 165,000 jobs in October, unemployment drops to 4.1%.
In brief
US economy adds 165,000 jobs in October, unemployment drops to 4.1%. US added 165,000 jobs in October, bringing unemployment down to 4.1%. Originally reported by Straight Arrow.
October jobs report
The US economy added 165,000 jobs in October, far exceeding economists' expectations.
Unemployment rate drops
The unemployment rate fell to 4.1% from 4.2% in September.
Economists' forecast
Economists predicted a gain of just 59,000 new jobs in October.
Hiring strength
Hiring was strongest in professional and business services, health care, and transportation and warehousing.
ADP report
Private employers added 86,000 jobs in October, marking the second consecutive month of solid hiring.
ADP economist
ADP Chief Economist Nela Richardson said job-changers were lured by bonuses, overtime, and higher base pay.
Wage growth
Average hourly earnings rose 14 cents to $38 in October, a 0.4% increase over one month.
Inflation impact
Consumer prices rose 3.7% over the 12 months through September, leaving households struggling with rising costs.
Voter concerns
Voters appeared far more concerned about inflation than the relative strength of the job market.
Political context
The jobs report came three days after voters delivered a crushing defeat to President Donald Trump's Republican Party in the midterm elections.
Economic expert
Matthew Grossmann, a political science professor at Michigan State University, said inflation packs an outsize political punch.
Federal Reserve
The Federal Reserve faces a difficult balancing act of trying to rein in inflation without undermining the labor market.
Rate decision
The Federal Reserve's next interest rate decision is Dec. 9, giving policymakers just over a month to weigh whether to raise rates again.
Rate decision impact
Friday's stronger-than-expected jobs report could bolster the case for keeping interest rates elevated.
JOLTS survey
The Job Openings and Labor Turnover Survey showed an increase in job openings to 7.5 million in September.
Layoffs
Layoffs remained low at 1.6 million in September, more positive than analysts had expected.
What it means
US added 165,000 jobs in October, bringing unemployment down to 4.1%.
