U.S. adds 165,000 jobs in October and unemployment falls to 4.1%, far above forecasts

The United States added 165,000 nonfarm jobs in October and the unemployment rate edged down a tenth of a point to 4.1%, according to a report published Friday by the Bureau of Labor Statistics (BLS), a figure far above the 65,000 jobs economists surveyed by Reuters had expected.

Growth was concentrated in professional and business services, which added 70,000 jobs, health care, and transportation and warehousing. In addition, the previous two months were revised upward: August went from 133,000 to 186,000 jobs and September from 29,000 to 60,000, a combined increase of 84,000 jobs from what was initially reported.

The number of unemployed people held steady at 7.1 million. Among the Hispanic population, the unemployment rate stood at 4.7%, above the national average, according to the BLS.

Average hourly earnings reached $38 after rising 14 cents over the month, a 3.1% increase from a year earlier that lagged inflation: the consumer price index rose 3.7% year over year in September, the latest figure available, and the October reading will be published on Tuesday, November 10.

It is the first key economic indicator released since Tuesday's midterm elections, in which Democrats regained control of both chambers of Congress. The Federal Reserve, which held its rates at 3.75% to 4% at its October 28 meeting, will weigh this report and the inflation data ahead of its December meeting, at which economists expect a rate hike.

Photo: El Diario NY

Source: Reuters