U.S. economy added 165,000 jobs in October, way more than expected; unemployment rate at 4.1%

The U.S. economy added jobs at a much stronger than expected pace in October, while the unemployment rate moved lower as the labor market showed surprising strength.

Nonfarm payrolls increased by a seasonally adjusted 165,000 for the month, compared with the Dow Jones estimate for 59,000, the Bureau of Labor Statistics reported Friday.

The unemployment rate nudged down to 4.1%, compared with the forecast for 4.2%.

In addition to the strong payroll gains for October, prior months were revised up substantially: The August figure moved up to 186,000, an upward revision of 53,000, while the September count moved to 60,000 following an upward revision of 31,000.

Payroll gains also came in better than forecast. Average hourly earnings increased 0.4% on the month and 3.1% annually, compared to respective estimates for 0.3% and 2.9%.

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