US job creation surges past expectations in October

Summarised from 6 outlets · 7 reports · Updated 6 Nov, 17:39 · Archive

The United States added 165,000 jobs in October, far exceeding economist forecasts and pushing unemployment to 4.1%.

The United States added 165,000 jobs in October, substantially exceeding economist expectations. Most forecasters had predicted the economy would add between 59,000 and 65,000 positions, with estimates ranging from 35,000 to 125,000. The unemployment rate declined to 4.1% from 4.2% in the previous month.

The Labor Department also provided upward revisions to earlier months' figures. August payrolls were revised up by 53,000 to reach 186,000, while September's count rose by 31,000 to 60,000. Combined, the revisions added 84,000 to the prior two months' reported gains.

Growth appeared across several sectors. The Guardian World reports that job creation was seen in healthcare, transportation, warehousing and manufacturing. Financial Times notes that hiring rebound was led by professional services.

Average hourly earnings increased 0.4% on the month and 3.1% annually, according to CNBC. The Guardian World reports that wage growth has been outpaced by inflation, with the annualized inflation rate standing at 3.7% in September, which it notes often leads people to feel they are spending more on essentials.

Layoff activity remained subdued. The Guardian World reports that layoffs in September fell to their lowest level in a year and a half, while the outplacement firm Challenger, Gray & Christmas tracked just under 44,000 layoffs in October—a 71% decrease compared with the same month a year earlier.

Economists characterised the report as strong. Dan North, senior economist at Allianz Trade North America, told CNBC: 'You have to look pretty hard to find something to dislike in there. It's a really, really good report.' Seema Shah, chief global strategist at Principal Asset Management, said the report was 'a strong rebuttal to fears that the economy is heading into a meaningful slowdown'. Ryan Sweet, chief global economist at Oxford Economics, stated that 'all signs point to a solid labor market, even if it is difficult for pockets of workers'.

The Guardian World reports that economists have described the labour market as stuck in a 'low-hire, low-fire' state, in which job growth is sluggish but layoffs remain low, though October's data surpassed this characterisation. The New York Post reports that economists estimated the economy needed to create at least 40,000 jobs per month to keep up with growth in the working-age population, a threshold this month exceeded substantially.

The New York Post reports that the Federal Reserve left its benchmark overnight interest rate in the 3.75%-4.00% range last week, and that economists expect a rate hike in December.

How it is being reported

• U.S. added 165,000 jobs in October, a positive update after the stock market purgeThe latest jobs report exceeded expectations a day after stocks fell amid AI fears. CBS News' Jill Schlesinger and Aaron Navarro report.CBS News · 6 Nov, 17:11
• US employers surprisingly add 165K jobs in strong October, unemployment dipsPayrolls jumped by 165,000 jobs last month after an upwardly revised 60,000 gain in September, the Labor Department's Bureau of Labor Statistics said on Friday.New York Post · 6 Nov, 14:50
• U.S. economy added 165,000 jobs in October, way more than expected; unemployment rate slips to 4.1%Nonfarm payrolls were expected to increase by 59,000 in October as the unemployment rate held steady at 4.2%.CNBC · 6 Nov, 14:07
• Hiring jumps: The economy added 165,000 jobs last monthThe U.S. job market improved last month, according to a report from the Labor Department Friday. Employers added more jobs than forecasters had expected and the unemployment rate dipped to 4.1%.NPR · 6 Nov, 13:49
• US job growth exceeds expectations in October despite economic uncertainty‘Low-hire, low-fire’ labor market shows sluggish growth but few layoffs, with an interest rate hike expected in December The US added 165,000 jobs to the economy in October, a sign of resilience in the labor market amid ongoing war in the Middle East and inflation, according to new data released on Friday. Economists had said the labor market has been stuck in a “low-hire, low-fire” state, in which job growth is sluggish but layoffs also remain low, but October’s data surpassed economist expectations. The unemployment rate went down slightly to 4.1%, the Bureau of Labor Statistics (BLS)…Guardian World · 6 Nov, 13:42
• US economy outstrips forecasts to add 165,000 jobs in OctoberHiring rebound led by professional services underscores strength of American labour marketFinancial Times · 6 Nov, 13:40
• Employers added 165,000 jobs in October, soaring past expectationsHiring across the U.S. surged last month and unemployment dipped, a sign the job market is picking up speed.CBS News · 6 Nov, 13:37

In this story: United States · Labor Department · Bureau of Labor Statistics · Oxford Economics · Allianz Trade North America · Principal Asset Management · Federal Reserve · Challenger, Gray & Christmas

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log