The U.S. economy added 165,000 jobs in October, far surpassing economists’ expectations and signaling stronger hiring after a slowdown in September. The unemployment rate also edged down to 4.1%, reinforcing signs of resilience in the American labor market.

The Bureau of Labor Statistics reported Friday, November 6, that employers added more than twice the 65,000 jobs economists surveyed by LSEG had predicted.

The unemployment rate declined from 4.2% in September to 4.1% in October. Economists had expected it to remain unchanged.

The government also revised employment figures for the previous two months, showing that hiring was stronger than initially reported.

August’s job gains were revised upward from 133,000 to 186,000, while September’s gains increased from 29,000 to 60,000. Together, the revisions added 84,000 jobs to previously reported employment figures.

Private employers accounted for most of October’s growth, adding 159,000 positions. Government employment increased by just 6,000 jobs.

Professional and business services led the gains, adding 70,000 jobs. That was significantly higher than the sector’s average monthly increase of 15,000 over the previous year.

Healthcare employers added 41,600 positions, with hospitals, home healthcare services, and outpatient care centers contributing to the increase.

Transportation and warehousing gained another 24,800 jobs, while manufacturing added 19,000 positions. Manufacturing hiring also exceeded economists’ expectations of 5,000 new jobs.

The stronger employment figures provided a political boost for President Donald Trump, whose administration has promoted its economic policies as a driver of investment and job creation.

The White House celebrated the October figures following the Republican Party’s sweeping losses in the midterm elections.

“The economy added a massive 165,000 new jobs in October, more than double what experts expected, with the unemployment rate falling, manufacturing surging, prior months revised sharply higher and broad-based gains,” the White House said in a statement.

However, the report also showed that some Americans continue to face difficulties finding full-time employment.

The number of people working part-time for economic reasons increased by 339,000 to 4.8 million. These workers wanted full-time positions but could not find them or had their hours reduced.

Long-term unemployment remained near 2 million, accounting for 27.6% of all unemployed Americans.

Meanwhile, average hourly earnings increased 0.4% in October and 3.1% compared with a year earlier. Both figures exceeded economists’ expectations.

The stronger hiring and wage growth could also influence the Federal Reserve’s next interest rate decision.

The central bank has been weighing inflation concerns against the strength of the labor market. October’s employment figures suggest the economy may be strong enough to withstand another interest rate increase.

Seema Shah, chief global strategist at Principal Asset Management, said the report “is a strong rebuttal to fears that the economy is heading into a meaningful slowdown.”

She added that stronger wages and broad-based hiring could keep a December interest rate increase under consideration.

Following the report, financial markets increased their expectations of a quarter-point rate hike at the Federal Reserve’s December 8–9 meeting.

According to the CME FedWatch tool, the probability of an increase rose to 76.8% on Friday, up from 66.9% a week earlier.

The next major economic indicator will be the October Consumer Price Index, scheduled for release on November 10. That report will provide further insight into inflation before the Fed’s December decision.