U.S. employers added 165,000 jobs in October, far more than expected, and the unemployment rate edged down to 4.1%, the Bureau of Labor Statistics reported Friday.
Wall Street had looked for about 59,000 payrolls and a 4.2% jobless rate, CNBC reported.
Reuters economists had forecast about 65,000 jobs, so the print beat both major surveys.
Average hourly earnings rose 0.4% on the month and 3.1% over the year, beating forecasts for 0.3% and 2.9%.
The average workweek held at 34.4 hours.
Professional and business services led with 70,000 jobs, health care added 42,000, transportation and warehousing gained 25,000, and manufacturing rose 19,000.
August payrolls were revised up by 53,000 to 186,000, and September was lifted by 31,000 to 60,000.
October’s gain topped the 48,000 average monthly increase over the prior 12 months, the Bureau of Labor Statistics said.
Past months’ revisions show stronger labor demand than first estimated after sharp swings in hiring, USA Today reported.
The labor force participation rate edged up to 61.9%, and the civilian labor force rose by 421,000.
About 7.1 million people were unemployed in October.
Fed Odds and Bond Yields
Traders lifted the chance of a quarter-point Federal Reserve hike at the Dec. 8-9 meeting to about 77%, up from roughly 66% a day earlier, CNBC reported citing CME FedWatch.
December odds sat near 76.8%, with only one additional hike priced beyond that step, InvestmentNews reported.
The Fed’s target range stands at 3.75% to 4% after a September increase and an Oct. 28 hold.
The 2-year Treasury yield rose more than 4 basis points to about 4.52%, and the 10-year climbed above 4.86%.
Yields also jumped in Reuters accounts of the release, with the 2-year near 4.52% and the 10-year near 4.88%, U.S. News & World Report carried.
“Today’s jobs report is a strong rebuttal to fears that the economy is heading into a meaningful slowdown,” Seema Shah of Principal Asset Management told CNBC.
Dan North of Allianz Trade North America called it “a really, really good report” and “stronger than expected.”
A broader underemployment gauge rose to 7.9%, up 0.3 point, and average unemployment duration jumped to 27.1 weeks, the highest since September 2021.
The release landed days after Democrats swept the midterms on an affordability message, even as hiring beat forecasts.
Markets still face inflation pressures tied to Middle East energy costs, leaving Fed officials focused on price stability alongside the firmer payroll print.
Heather Long of Navy Federal Credit Union said the labor market is “on much better footing than a year ago,” when gains were thin and concentrated in health care, CNBC reported.
Friday’s surprise strength resets the near-term rate path debate heading into December, with futures now leaning hard toward another hike.
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