US job growth beats expectations in October despite economic uncertainty | US Unemployment and Employment Data

The United States added 165,000 jobs to the economy in October, a sign of job market resilience amid war in the Middle East and inflation, according to new data released Friday.

Economists had said the labor market was stuck in a state of “low hiring, low fire,” in which job growth is slow but layoffs also remain weak, but the October data beat economists’ expectations. The unemployment rate fell slightly to 4.1%, the Bureau of Labor Statistics (BLS) reported.

The average hourly wage increased at an annual rate of 3.1%, slightly higher than last month. Inflation in recent months has far outpaced wage growth, often making people feel like they’re spending even more on basic necessities. In September, the annualized inflation rate was 3.7%.

The first figures for August and September were also revised upward by a total of 84,000 jobs. Job growth was seen in health care, transportation, warehousing and manufacturing.

Other data released earlier this week showed employment was stable. Layoffs in September fell to their lowest level in a year and a half, according to the bureau, while outplacement firm Challenger, Gray & Christmas recorded just under 44,000 layoffs in October, a 71% decrease from last October.

The new data comes after a seismic midterm election that solidified Democrats’ control of Congress for the next two years. Several polls have shown that Americans are most frustrated with the state of the economy, particularly the rising prices of gasoline and groceries.

“Americans delivered a clear verdict in the midterm elections that today’s economy is putting people under financial strain and making it difficult to survive, let alone succeed,” Heather Long, chief economist at Navy Federal Credit Union, said in a statement released before Friday’s report. “The job market is a good example of why people are frustrated. »

But it’s unclear when exactly Americans will receive aid. Gas prices are on average $1 a gallon higher than a year ago because of the war in Iran. The price of diesel, used throughout the supply chain to power large vehicles, is 60% higher than pre-war.

In times of stubborn inflation, the U.S. Federal Reserve typically intervenes by raising interest rates, which slows the rise in prices. In September, the Fed raised interest rates for the first time since 2023, raising them to a range of 3.75% to 4%, citing inflation. Although officials kept rates steady at their last meeting in October, held the week before the election, economists expect another rate hike at the central bank’s next meeting in December.

Meanwhile, markets were reeling last week as investors appeared worried about AI spending. After reaching correction territory, when an index falls 10% below its most recent peak, the tech-heavy Nasdaq index briefly rebounded on Wednesday before plunging back into correction territory on Thursday.