US Job Growth Beats Expectations in October

The U.S. labour market expanded significantly in October by adding 165,000 jobs, crushing Wall Street analysts’ expectations of 65,000 new positions.

Bureau of Labour Statistics data revealed that the national unemployment rate dipped to 4.1 per cent, down from expectations that it would hold steady at 4.2 per cent.

Government officials also revised the combined employment figures for August and September by 84,000 jobs, doubling September’s originally reported gains to 60,000.

White House National Economic Council Director Kevin Hassett praised the figures, highlighting three consecutive months of robust employment expansion and predicting continued momentum.

Professional and business services drove the growth by adding 70,000 positions, while healthcare contributed 42,000 jobs to support an ageing population.

Transportation, warehousing, and manufacturing also recorded notable gains, while construction, retail, and government hiring remained largely unchanged.

The unexpected hiring surge increases pressure on the Federal Reserve to raise interest rates further to curb persistent inflation.

Higher interest rates put the central bank directly at odds with President Donald Trump, who continues to demand swift rate cuts to lower borrowing costs.

Although average hourly earnings rose 3.1 per cent over the past 12 months, wage gains continue to lag behind inflation, leaving many workers with reduced real purchasing power despite strong overall employment figures.