US employers added 165,000 jobs in October

The U.S. economy created 165,000 new jobs in October, according to a report released by the Labor Department on Friday. This marked a recovery in hiring activity for the month.

The unemployment rate dropped to 4.1% from 4.2% in September. The Labor Department also revised the employment figures for August and September upward by a combined 84,000 jobs.

Health care, manufacturing, and business services sectors drove the monthly gains. In contrast, restaurants and construction firms reduced their workforces during the same period.

Average wages rose 3.1% in October compared to the previous year. While this annual increase was larger than the one recorded in September, it remained below the inflation rate.

Inflation reached 3.7% in September. Prices have outpaced wage growth for much of the year, a trend that followed a sharp spike in energy costs caused by the war with Iran.

Cory Stahle, an economist at the Indeed job-search website, noted that workers are currently losing financial ground. He stated that the longer this situation persists, the more strongly employees will feel the impact.

Voter frustration over high prices contributed to the midterm election results, where Republicans lost their majorities in both the House and Senate. The Federal Reserve held its benchmark interest rate steady last week but is expected to raise rates at its December meeting.