US added 165,000 jobs in October as unemployment dipped to 4.1%
Why it matters: The stronger-than-expected report lifted December Fed hike odds to 77% as wage growth accelerated to 3.1% year over year.
US employers added 165,000 jobs in October, far above forecasts, while the unemployment rate edged down to 4.1%, underscoring the labor market's resilience. The Bureau of Labor Statistics also revised August and September payrolls up by a combined 84,000 jobs. Average hourly earnings rose 0.4% from September and 3.1% from a year earlier, while the labor force grew by 421,000 people. Professional and business services led hiring with 70,000 new jobs, followed by healthcare with nearly 42,000, transportation and warehousing with 25,000, and manufacturing with 19,000. The report pushed up expectations that the Federal Reserve could raise interest rates again in December as inflation remains above target.