BLS Reports 165,000 New Jobs in October, Tripling Forecasts

Employers created 165,000 new positions in October, a figure that far exceeded market predictions and marked a sharp rebound in hiring activity. The Bureau of Labor Statistics released the data on Friday, showing that job growth accelerated despite a slight rise in broader unemployment metrics.

Economists surveyed by Dow Jones had projected only 59,000 new jobs, according to CNBC. The actual count was nearly three times that estimate. The standard unemployment rate declined from 4.2% in September to 4.1% in October. However, the U-6 measure, which includes discouraged workers and those employed part-time for economic reasons, increased from 7.6% to 7.9%.

The report arrived three days after the midterm elections and included upward revisions for the previous two months. August job gains were adjusted upward by 53,000, rising from 133,000 to 186,000. September gains saw a 31,000 increase, moving from 29,000 to 60,000. These changes indicate that employers added 84,000 more jobs in the summer months than previously recorded.

Sector-specific data shows professional and business services drove the strongest growth, adding 70,000 jobs. Health care followed with 42,000 new positions. Transportation and warehousing contributed 25,000 jobs, while manufacturing added 19,000.

Average hourly earnings rose 3.1% over the past year. This wage growth outpaced economist expectations but remained below the most recent inflation figures. The next consumer price report, due Tuesday, will provide a direct comparison between these wage gains and current inflation rates.