Adds 165,000 jobs in October, beating forecasts

The U.S. economy added 165,000 jobs in October, well above economists’ forecast of 65,000, according to the Labor Department’s report released November 6. The unemployment rate fell to 4.1% from 4.2% in September. Revisions lifted prior months: August job growth increased to 186,000 from 133,000, and September to 60,000 from 29,000, for a combined 84,000 higher than previously estimated. Gains were led by professional and business services (+70,000), followed by healthcare (+42,000) and transportation and warehousing (+25,000). Manufacturing rose by 19,000, including areas tied to AI infrastructure. Construction lost 3,000 jobs and leisure and hospitality fell 13,000. Markets raised expectations for a December Fed rate hike, with CME FedWatch showing about 76.8% odds.