October hiring surge triples forecasts as unemployment slips to 4.1%

Employers created 165,000 jobs in October, a figure that nearly tripled what financial experts had predicted. The Bureau of Labor Statistics released the data on Friday, showing that the unemployment rate dropped from 4.2% to 4.1%.

Economists surveyed by Dow Jones had expected only 59,000 new positions. The actual count of 165,000 marked a sharp acceleration in hiring compared to those projections. This release arrived three days after the midterm elections.

While the standard jobless rate improved, the U-6 measure of labor underutilization rose. This broader metric, which includes discouraged workers and part-time employees seeking full-time work, increased from 7.6% to 7.9%.

The agency also adjusted previous monthly data upward. August job gains were revised from 133,000 to 186,000, an increase of 53,000. September gains moved from 29,000 to 60,000, adding 31,000 jobs. These revisions indicate that employers added 84,000 more jobs over that two-month period than initially reported.

Professional and business services drove the October growth, contributing 70,000 new roles. Health care followed with 42,000, while transportation and warehousing added 25,000. Manufacturing accounted for 19,000 of the new positions.

Average hourly earnings increased 3.1% over the past year. This wage growth outpaced economic forecasts but remained below the latest reported inflation rate. The October consumer price report is scheduled for release on Tuesday.