BLS: October Payrolls Surge Past Forecasts

Employers in the United States added 165,000 jobs in October, a figure that exceeded the 59,000 gain projected by economists surveyed by Dow Jones. The Bureau of Labor Statistics released the data on Friday, marking a sharp acceleration in hiring compared to the previous month.

The unemployment rate declined from 4.2% in September to 4.1% in October. However, the U-6 measure of labor underutilization increased from 7.6% to 7.9%. This broader metric includes individuals who are not in the labor force but want a job, as well as those working part time for economic reasons.

The report, issued three days after the midterm elections, included upward revisions for the two preceding months. August job growth was revised up by 53,000 to 186,000. September gains were adjusted up by 31,000 to 60,000. These changes indicate that employers created 84,000 more positions in the summer than previously recorded.

Sector data showed that professional and business services drove the highest growth, adding 70,000 jobs. Health care followed with 42,000 new positions. Transportation and warehousing contributed 25,000 jobs, while manufacturing added 19,000.

Average hourly earnings rose 3.1% from a year earlier. This wage increase outpaced economist expectations but remained below the latest reported inflation rate. The Consumer Price Index report for October is scheduled for release on Tuesday.