Labor Market: October Hiring Beats Forecasts

American workers saw their job security improve in October as employers hired at a much faster pace than analysts predicted. The Bureau of Labor Statistics reported Friday that the economy added 165,000 seasonally adjusted jobs. This figure was nearly three times the 59,000 jobs that economists surveyed by Dow Jones had anticipated.

The unemployment rate declined from 4.2% in September to 4.1% in October. Despite this drop in the standard headline number, a broader metric known as the U-6 rate increased. That measure, which counts discouraged workers and those employed part time for economic reasons, rose from 7.6% to 7.9%.

The data also indicated stronger performance in the months preceding the midterm elections. The bureau revised job growth for August upward by 53,000, changing the total from 133,000 to 186,000. It adjusted September’s figure upward by 31,000, from 29,000 to 60,000. These revisions mean employers created 84,000 more jobs over those two months than previously recorded.

Professional and business services drove the October increase, contributing 70,000 new positions. Health care followed with 42,000 added jobs, while transportation and warehousing saw a rise of 25,000. Manufacturing added 19,000 jobs during the month.

Average hourly earnings climbed 3.1% compared to the same period a year earlier. This growth rate exceeded economic forecasts but remained lower than the most recent inflation figures. The October consumer price report is scheduled for release Tuesday, which will provide a direct comparison between wage gains and price changes.