The U.S. job market regained momentum in October, delivering a solid month of hiring after a softer stretch. Employers added 165,000 jobs during the month, the Labor Department reported Friday, and the unemployment rate dipped to 4.1%, down from 4.2% a month earlier.
The new report also brightened the picture of late summer. Employment gains for August and September were revised upward by a combined 84,000 jobs, suggesting the labor market was sturdier in those months than earlier estimates indicated.
Hiring in October was broad but not universal. Health care providers, manufacturers and business services firms all added workers over the month. At the same time, restaurants and construction companies cut jobs, showing that the gains did not reach every corner of the economy.
Wages offered another sign of a strengthening job market. Average pay in October was up 3.1% from a year earlier, a slightly larger annual increase than the previous month. Even so, wage growth is probably still not enough to keep pace with rising prices.
Inflation climbed to 3.7% in September, and the cost of living has been going up faster than wages for much of this year. The squeeze on households began after the war with Iran triggered a sharp jump in energy prices, steadily eroding the buying power of workers' paychecks.
"Workers are losing ground right now," said Cory Stahle, an economist with the Indeed job-search website. "The longer it wears on, the more and more they're going to feel that."
That economic frustration has already shown up at the ballot box. Voters' unhappiness with high prices was a big factor in the midterm elections, which cost Republicans their majorities in both the House and the Senate.
Despite the strain on household budgets, the unemployment rate remains historically low. That resilience has allowed the Federal Reserve to focus its attention on fighting inflation rather than shoring up hiring.
The central bank held its benchmark interest rate steady at its meeting last week. Investors expect the Fed to raise rates when policymakers gather again in December, betting that officials will move to keep price increases in check even as the job market shows fresh signs of life.
