Employment rose by 165,000 jobs in October, and unemployment rate fell to 4.1%
Job creation far exceeded analysts' forecasts, which had called for 65,000 new jobs. The results underscore the strength of the labor market and could increase pressure on the Federal Reserve to keep interest rates high.
Illustrative image of workers
The labor market far exceeded analysts' forecasts, with 165,000 jobs created in October and the unemployment rate falling to 4.1%, according to government data released Friday.
The result, AFP explained, reinforces the perception of stability in the labor market of the world's largest economy and could increase pressure on the Federal Reserve (Fed) to maintain a tight monetary policy and even consider further interest rate hikes.
The data poses a challenge for President Donald Trump, who has repeatedly called for lower borrowing costs and questioned the Fed's decisions.
According to the consensus forecast from Briefing.com, analysts expected the creation of just 65,000 jobs and for the unemployment rate to remain at 4.2%.
White House National Economic Council Director Kevin Hassett welcomed the results during an interview with CNBC.
The Bureau of Labor Statistics also revised the employment figures for August and September upward, with a combined increase of 84,000 jobs compared to previous estimates.
In particular, the September revision raised job creation from 29,000 to 60,000 jobs.
Services lead in job creation
October's increase far exceeded the monthly average of 48,000 jobs recorded over the previous 12 months, according to the BLS.
Professional and business services led the way in job creation, with 70,000 new jobs—a figure well above the sector's monthly average of 15,000 over the past year.
Job creation in other sectors
Meanwhile, transportation and warehousing added 25,000 workers, mainly in courier and delivery services, while the manufacturing sector added 19,000 jobs.
In contrast, employment in other key sectors—such as construction, retail trade, financial services and the government—remained virtually unchanged.
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