Continues to generate jobs, yet inflation is eroding the spending power of millions of Americans

U.S. employers added 165,000 jobs in October, and the unemployment rate fell to 4.1%, according to a Washington AP report. The gain beat economists’ expectation of 65,000 new jobs. Revisions also added 84,000 jobs combined to August and September totals. Average hourly wages rose 0.4% month over month in October, the largest such increase since January. The report landed three days after midterm elections handed Democrats full control of Congress, while highlighting that inflation is still eroding purchasing power for many workers. The Federal Reserve may gain confidence in the labor market’s health but faces persistently high inflation, with Wall Street pricing a 77% chance of a December rate hike, up about 10 points from Thursday.