US job growth beats expectations in October

A Now Hiring sign in a shop window

The US economy added 165,000 jobs in October, far more than analysts had expected, while the unemployment rate dipped to 4.1%, government data showed on Friday.

The gain was well above the average monthly increase of 48,000 over the previous 12 months, the Bureau of Labor Statistics said.

Professional and business services led the increase with 70,000 new jobs, while health care added 42,000, transportation and warehousing 25,000, and manufacturing 19,000.

The relatively stable labour market has allowed the US Federal Reserve to focus on bringing down stubbornly high inflation, and the strong figures could add to pressure for further interest rate hikes.

An executive at staffing firm ManpowerGroup said demand was picking up in parts of the economy, but needed to spread to more industries before it could be called a broader hiring recovery.

The data came days after the US midterm elections, in which the cost of living weighed heavily on voters.

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