Labor Data: October Hiring Surges Past Forecasts

The U.S. labor market expanded faster than predicted in October, with employers adding 165,000 jobs according to the Bureau of Labor Statistics. This figure, released on Friday, was nearly three times the 59,000 positions that economists surveyed by Dow Jones had projected. The strong performance marked a clear rebound in hiring activity following a slower summer.

The unemployment rate declined from 4.2% in September to 4.1% in October. However, a wider measure of unemployment, known as the U-6 rate, increased from 7.6% to 7.9%. This metric includes discouraged workers and individuals employed part-time for economic reasons, indicating that some labor force participation remained soft despite the headline improvement.

The report also adjusted previous data upward. The bureau revised August job gains from 133,000 to 186,000 and increased September’s total from 29,000 to 60,000. These changes mean employers added 84,000 more jobs over those two months than originally reported. The data was released three days after the midterm elections, offering a snapshot of economic conditions near the vote.

Specific sectors drove the October increase. Professional and business services contributed 70,000 jobs, the largest single gain. Health care followed with 42,000 new positions, while transportation and warehousing added 25,000. Manufacturing also grew, contributing 19,000 jobs to the total.

Average hourly earnings rose 3.1% from a year earlier. This rate exceeded economist expectations but remained below the most recent reported inflation rate. The next consumer price report is scheduled for release on Tuesday, which will provide a direct comparison between wage growth and price changes for the same period.