US economy adds 165,000 jobs in October, beating forecasts

The U.S. economy added 165,000 jobs in October, far exceeding the 65,000 economists expected, while the unemployment rate fell to 4.1%. This surprising strength comes days after voters delivered a defeat to President Donald Trump in midterm elections. Labor Department revisions added 84,000 jobs to August and September totals, and average hourly wages rose 0.4% from September, the largest monthly gain since January. Professional services added 70,000 jobs, healthcare hired 42,000, but hotels and restaurants cut 10,600 positions. The strong report makes a Federal Reserve rate hike in December more likely, with Wall Street seeing a 77% chance. Hiring remains modest by historic standards, reflecting a "low-hire, low-fire" environment, while AI adoption and high costs continue to shape employer decisions.