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The U.S. economy added 165,000 nonfarm jobs in October, exceeding forecasts of 59,000. The unemployment rate fell to 4.1%, while the broader measure of unemployment rose to 7.9%. Professional and business services led job growth, adding 70,000 jobs, followed by health care with 42,000, transportation and warehousing with 25,000, and manufacturing with 19,000. Average hourly earnings rose 0.4% month over month and 3.1% year over year. The report strengthened traders’ bets that the Federal Reserve will raise interest rates by 25 basis points in December, putting the odds of an increase at 76.8%, although markets’ reaction to the data remained muted.
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