U.S. adds 165,000 jobs in October as hiring rebounds

Employers across the United States added 165,000 jobs in October, the Bureau of Labor Statistics reported Friday. The figure was nearly three times the 59,000 jobs economists surveyed by Dow Jones had predicted. The report marked a stronger month for hiring than the previous two months combined.

The unemployment rate dropped from 4.2% in September to 4.1% in October. However, the U-6 rate, which counts discouraged workers and those working part-time for economic reasons, increased from 7.6% to 7.9%. The data was released three days after the midterm elections.

The bureau also revised job numbers for the months before October. August job gains were raised by 53,000 to 186,000, and September gains were raised by 31,000 to 60,000. These changes mean employers added 84,000 more jobs over those two months than initially reported.

Professional and business services led October hiring with 70,000 new positions. Health care followed with 42,000 jobs, transportation and warehousing added 25,000, and manufacturing contributed 19,000. Average hourly earnings rose 3.1% over the past year, a figure that exceeded economist expectations but remained below the latest inflation rate.

The next consumer price report is due Tuesday. That report will show how the recent wage gains compare with inflation for the same period.