U.S. job growth beats forecasts as unemployment dips to 4.1%

The U.S. labor market showed surprising strength in October, with unemployment falling from 4.2% to 4.1% and 165,000 jobs added, far exceeding expectations. The robust figures contrast with political headwinds for President Donald Trump following midterm losses. The Labor Department also revised August and September data upward by 84,000 net jobs. Financial markets had expected a weaker report with around 60,000 new jobs and stable unemployment, making the positive news significant for investor confidence. The strong data supports expectations that the Federal Reserve will focus on inflation at its December meeting, with another rate hike anticipated. However, wages rose 3.1% annually, still trailing consumer prices at 3.7%, leaving workers struggling with living costs.