US job growth beats forecasts in October; unemployment dips to 4.1%

US job growth beat expectations in October, with nonfarm payrolls rising by 165,000 jobs and the unemployment rate falling to 4.1%, signaling a resilient labor market that gives the Federal Reserve more room to focus on inflation. The Labor Department reported Friday that September's gain was upwardly revised to 60,000 from a previously reported 29,000. Economists had forecast only 65,000 new jobs for October, with estimates ranging from 35,000 to 125,000. The unemployment rate declined from 4.2% in September, while historically low layoffs and rising job openings suggest labor market tightening. Economists expect a Fed rate hike in December, with next Tuesday's inflation report offering clues on monetary policy for early 2027.