US adds 165,000 jobs in October, beating forecasts; unemployment rate falls to 4.1%

New economic data has brought some relief in the United States, which is facing a changed political situation after the midterm elections. In October, American companies hired more than expected, adding 165,000 jobs. The unemployment rate also fell from 4.2 per cent to 4.1 per cent, a sign of renewed movement in the US labour market.

After the election results, a change in the climate for Trump had been expected. Some key figures in his own party have begun to blame him for the defeat. Vice-President J.D. Vance has also targeted Trump. The jobs report has therefore come as good news.

According to the US Labor Department's October jobs report, the country added 165,000 jobs. Economists had forecast only 65,000. The actual figure was well above that, two and a half times the expectation.

In September, only 60,000 jobs were added. The October gain suggests the labour market is improving. In addition, the employment figures for August and September have been revised up by a combined 84,000 jobs.

In October, new jobs were created in health care, manufacturing and professional services. The warehouse and transport sector in particular added 25,000 jobs. Employment fell in restaurants and construction, so the gains were not uniform across sectors. The economy shows strength, but young people looking for work still face challenges.

Despite the improved jobs data, ordinary Americans continue to struggle with rising prices. Average wages rose 3.1 per cent year on year in October. But inflation had reached 3.7 per cent in September, so the prices of essentials are rising faster than wages.

The war in Iran is also putting pressure on energy and fuel prices. The US Federal Reserve held interest rates steady last week. After the new jobs figures, financial markets are now watching the interest rate decision due in December. A strong labour market has given the government some relief, but the challenge of keeping inflation under control remains.