Hiring jumps: The economy added 165,000 jobs last month
The U.S. labor market showed growth in October with 165,000 new jobs added and a slight dip in the unemployment rate to 4.1%. Despite job gains, wage growth is currently failing to keep pace with inflation, leading to economic pressure on workers.
Why it matters
The data highlights the ongoing tension between a strong labor market and persistent inflation, which influences Federal Reserve interest rate policy.
The U.S. job market picked up steam last month.
Employers added 165,000 jobs in October, according to a report Friday from the Labor Department. The unemployment rate dipped to 4.1%, from 4.2% the previous month.
Employment gains for August and September were revised up by a total of 84,000 jobs.
Industries adding jobs last month include health care, manufacturing, and business services. Meanwhile, restaurants and construction companies cut jobs during the month.
One sign of the strengthening job market was slightly larger wage gains. Average wages in October were up 3.1% from a year ago. That's a bigger annual increase than the previous month, but still probably not enough to keep pace with rising prices.
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