The U.S. added 165,000 jobs in October, blowing away expectations, the government said in its first major economic release after the midterms.
The Bureau of Labor Statistics said the unemployment rate ticked down slightly, to 4.1% from 4.2% the prior month.
“Employment increased in professional and business services, in healthcare, and in transportation and warehousing,” the BLS said in its summary.
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Wall Street forecasters had expected 59,000 added jobs, so the report far exceeded expectations.
Healthcare added 42,000 jobs, while professional services added 70,000 — much higher than the average monthly gain of 15,000 over the prior 12 months.
Transportation and warehousing added 25,000 jobs, and manufacturing 19,000 positions, especially in the electronics and machinery sectors.
The higher-than-expected jobs report is good news for President Trump, who says America is entering a “Golden Age” of investment and job growth under his tax and trade policy. It came too late, however, to avoid sweeping losses for his Republican Party against Democrats who emphasized high price inflation, the Iran war and concerns around the artificial-intelligence boom.
The country added a whopping 162,000 jobs in August despite earlier summer losses. A surge in the hospitality sector and teacher hiring ahead of the new school year buoyed the month.
Hiring cooled in September, with 29,000 new positions.
Employment and inflation data affect whether the Federal Reserve raises benchmark borrowing rates.
Central bankers cut interest rates last year because they were worried about sluggish job growth. Now, with employment relatively steady, the focus is primarily on prices.
On Tuesday, the BLS will release the Consumer Price Index for October. It is an important gauge of what consumers pay for goods and services.
The Fed raised rates at its September meeting to tame inflation but kept them steady at an October meeting.
Central bankers will meet again in December, and key forecasters are expecting another rate hike.
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