October jobs report beats expectations: 165,000 jobs added, unemployment falls to 4.1% (Nov 6)
What happened
U.S. employers added 165,000 jobs in October, far above the roughly 59,000-65,000 economists had forecast, and the unemployment rate ticked down to 4.1% from 4.2%, the Bureau of Labor Statistics reported Friday at 8:30 a.m. ET. The gain was more than triple the average monthly increase of 48,000 over the prior 12 months. The BLS also revised prior months sharply higher: August's gain was raised by 53,000 to 186,000 and September's by 31,000 to 60,000, a combined 84,000 more jobs than previously reported. Average hourly earnings rose 0.4% to $38.00 in October and are up 3.1% over the past year, while the labor force participation rate held at 61.9%.
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Start your free 14-day trialWho’s affected
- Broad market (S&P 500, Nasdaq, Dow): a much stronger-than-expected labor market gives the Fed more scope to focus on inflation, reinforcing December hike expectations. Rate-sensitive growth and AI/tech stocks: a hotter jobs print complicates the post-selloff bounce, since it argues against near-term easing. Banks and financials: higher-for-longer rate expectations are generally supportive of net interest margins. Small caps (Russell 2000): more exposed to higher borrowing costs.