The U.S. economy added 165,000 jobs in October, continuing a stretch of job growth after a slowdown early in the summer.
The new data comes as unemployment claims dropped to a 57-year low in October. Combined, the government data show a stable labor market, with relatively few people switching jobs.
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The unemployment rate fell to 4.1%. It has hovered between 4% and 4.5% for the past two years.
While Americans by and large have been able to stay in their current jobs, data show workers’ incomes are struggling to keep pace with inflation. Incomes have risen 3.1%, while inflation has increased 3.7%.
Over the past decade, the U.S. economy has averaged more than 123,000 new jobs per month.
With job growth strong, but inflation high, the Federal Reserve could be poised to continue raising interest rates to cool price increases.
ADP, which tracks private-sector employment, reported that private employers added 86,000 jobs in October. The report found that pay growth was strongest among workers who changed jobs. Base pay for workers who stayed in their jobs increased 3%, while workers who changed jobs saw a 4.8% increase.
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"Employers of all sizes were hiring last month, and our data suggests that job-changers were lured by a combination of bonuses, overtime, and more hours in addition to higher base pay," said Nela Richardson, ADP's chief economist. "Taken together, earnings growth for these workers hit its fastest pace since March 2024."
