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

U.S. nonfarm payrolls rose by 165,000 in October, far exceeding expectations for a 59,000 gain, while the unemployment rate edged down to 4.1% from the 4.2% forecast. The stronger-than-expected hiring signals continued labor market resilience despite elevated interest rates and other economic headwinds. The data matter because they could influence Federal Reserve thinking on the pace of rate cuts and shape market expectations for monetary policy. Investors will now watch upcoming inflation readings and Fed commentary for confirmation of whether the labor market’s strength persists.