The US economy added 165,000 jobs in October and the unemployment rate fell

Job growth surpassed expectations in October, new data showed Friday, with the US economy adding 165,000 jobs.

The unemployment rate fell to 4.1% from 4.2%, according to Bureau of Labor Statistics data.

Job growth in the previous two months was stronger than initially reported, with a total of 84,000 jobs added: August was revised upwards by 53,000 to 186,000; and September gains totaled 60,000, up from 29,000.

The consensus forecast for October called for monthly gains of 65,000 jobs and a 4.2% unemployment rate, FactSet estimates show.

Wage growth slowed on an annual basis to 3.1% from an upwardly revised 3.2%. Americans’ pay gains are hovering around pre-pandemic levels; however, inflation is not: Prices have been rising faster in recent months, driven higher by a war-driven energy shock.

The better-than-expected hiring offers some reassurance for an economy entering a new political chapter after the Democrats’ sweep in the midterm elections.

The cost of living remains a major concern for households, while employers are navigating demographic shifts, the rapid adoption of AI, persistently elevated inflation and the war with Iran. And a job market that appears healthy does not necessarily feel that way to workers.

Stock futures were mixed after the jobs report. S&P 500 futures were up 0.2%. Nasdaq 100 futures were up 1.5%, bouncing back after a steep tech sell-off Thursday. Dow futures, meanwhile, were down 450 points, or 0.87%.

This story is developing and will be updated.

CNN’s John Towfighi contributed reporting.

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