The U.S. economy added 165,000 jobs in October, far exceeding economists' expectations of roughly 59,000 to 70,000, as reported by the Bureau of Labor Statistics. The unemployment rate ticked down to 4.1%, and September's weak report of 29,000 additions was revised upward to 60,000.
Heather Long, chief economist at Navy Federal Credit Union, called the results "a blowout" in a post on X (formerly known as Twitter). Wharton economist Mohamed El-Erian said the report "came in very strong, across the board." Wage growth rose 0.4% from September, beating expectations for 0.3%, while annual earnings climbed 3.1%.
Hiring was broad-based: professional and business services added 70,000 roles, healthcare added 42,000, transportation and warehousing rose by 25,000, and manufacturing added 19,000. The strong report reinforced expectations that the Federal Reserve will raise rates again at its December 9 meeting.
Traders priced in a more than 76% chance of a quarter-point hike, up from about 66% the day before, according to the CME FedWatch Tool. Treasury yields rose after the release, with the 10-year yield climbing to 4.855% and the 2-year jumping to 4.512%.