October jobs smash forecasts: +165,000 payrolls, unemployment slips to 4.1%

U.S. employers added 165,000 jobs in October and the unemployment rate edged down to 4.1%, the Bureau of Labor Statistics reported Friday at 8:30 a.m. ET — far above the Dow Jones consensus near 59,000.

Professional and business services led with +70,000 jobs. Health care added 42,000, transportation and warehousing 25,000, and manufacturing 19,000. Average hourly earnings rose 0.4% on the month to $38.00 (+3.1% year over year). August and September payrolls were revised up by a combined 84,000.

The civilian labor force jumped by 421,000, and the broader U-6 underutilization rate rose to 7.9%. The report lands two days after Democrats took Congress in a midterm wave driven heavily by affordability concerns, and as traders raised odds of a December Federal Reserve rate hike.