US labor market regains ground as job growth surges, unemployment rate falls to 4.1%
SPY•SPY•SPY•SPY•US nonfarm payrolls rose by 165,000 in October, exceeding economists’ 65,000 forecast, while the unemployment rate fell to 4.1%. Revisions added 84,000 jobs to August and September’s totals.
Nonfarm payrolls increased by 165,000 in October after a revised gain of 60,000 in September. August and September job growth was revised up by a combined 84,000, and employment growth averaged 137,000 over the last three months.
Professional and business services added 70,000 jobs, healthcare added 42,000, transportation and warehousing added 25,000, and manufacturing added 19,000. Construction employment fell by 3,000 and leisure and hospitality employment dropped by 13,000.
The unemployment rate declined to 4.1% from 4.2% in September, even as more people entered the labor force. Financial markets priced in about an 80% chance of a Federal Reserve rate hike at its meeting next month, up from 66.9% on Thursday. Wage growth was 3.1% over the 12 months through October.
