U.S. economy added 165,000 jobs in October, well above forecasts

U.S. employers added 165,000 jobs in October, far more than economists had forecast, and the unemployment rate slipped to 4.1% from 4.2%, according to Bureau of Labor Statistics figures released Friday and reported by several outlets.

Outlets cited somewhat different forecasts. ABC13 Houston said experts had expected about 60,000 new jobs, and ABC15 put Wall Street's estimate at roughly 65,000. Gray DC, in a report carried by Dakota News Now and Cleveland 19, said economists surveyed by Dow Jones had expected 59,000, citing CNBC.

The report came out three days after the midterm elections, Gray DC noted. The bureau also raised its estimates for earlier months, revising August's gain from 133,000 to 186,000 and September's from 29,000 to 60,000. Together, those revisions added 84,000 jobs.

Professional and business services led October's hiring with 70,000 jobs, according to both ABC15 and Gray DC. The outlets disagreed on health care: ABC15 reported 55,000 new positions, while Gray DC reported 42,000. Gray DC said transportation and warehousing added 25,000 jobs and manufacturing 19,000. ABC15 reported losses in information, construction, and leisure and hospitality, with the last showing the steepest decline.

ABC15 said the drop in unemployment was most pronounced among teenagers and Black workers. Gray DC reported that a broader measure, the U-6 rate, which counts discouraged workers and people working part time for economic reasons, rose from 7.6% to 7.9%.

Average hourly earnings were up 3.1% from a year earlier, according to Gray DC, which said that topped economists' expectations but trailed the most recent inflation figure. ABC15 said wages have failed to keep pace with rising prices for seven straight months and compared October's wage growth with an expected inflation rate of 3.7%. The October consumer price report is scheduled for Tuesday, Gray DC reported.

John Diamond, who directs the Center for Tax and Budget Policy at Rice University's Baker Institute, told ABC13 that average monthly job growth over the past three months was 137,000. "That's a really strong number, and that tells us the labor market is healthy," he said.

ABC13 reported that the figures arrive as the Federal Reserve deals with rising inflation, and that economists view the report as giving the central bank room to address prices without significant harm to employment. Diamond said the economy appears to be moving at a steady pace, adding that debt, deficits and inflation remain challenges.

Compiled by True News from reporting by ABC13 Houston, ABC15, Dakota News Now and Cleveland 19. Each outlet's original story is linked below.

Originally published by True News: https://truenews.bagleyenterprises.net/stories/837