U.S. adds 165,000 jobs in October as unemployment falls to 4.1%

U.S. employers added a surprising 165,000 jobs in October, and the unemployment rate dipped to 4.1%, far exceeding economists' expectations of 65,000 new jobs. The strong report comes days after Democrats won full control of Congress in midterm elections, fueled by voter frustration over the high cost of living. Labor Department revisions added 84,000 jobs to August and September totals, while average hourly wages rose 0.4% from September. The robust hiring likely boosts Federal Reserve confidence in the labor market, raising Wall Street's expectation of a December rate hike to 77%. However, wage growth remains modest, trailing annual inflation for the seventh straight month, with hourly earnings up just 3.1% from October 2025.