New economic data published on Friday showed that the economy wildly outperformed the forecasts of experts.
The data showed that the U.S. economy added 165,000 jobs in October while unemployment dropped to 4.1 percent, as reported by The Wall Street Journal.
According to the outlet, top economic experts had incorrectly predicted that jobs would grow by only 59,000 jobs in October.
The data published Friday also showed that average hourly earnings measured month-over-month ticked upward from 0.3 percent to 0.4 percent.
October jobs report: payrolls +165,000 (consensus +65,000), unemployment rate 4.1% (4.2% expected), average hourly earnings +0.4% on the month (+0.3% expected) and +3.1% over the past year (+2.9% expected). https://t.co/rlA6GQM4lS
— econvitals (@econvitals) November 6, 2026
In addition, the new data included a revision targeting the job numbers that were reported for September and August.
“Job figures for both September and August were revised higher by a combined 84,000,” The Wall Street Journal reported.
“That is a strong indication that the job market has pulled out of its midyear doldrums,” the outlet added.
What remains unclear is how wage growth measured by the average hourly earnings will compare to inflation, which is set to be reported next Tuesday.
All of these factors — job growth, wage growth, and inflation — will likely play a role when the Federal Reserve next meets in December to make an interest rate decision.
NEW IN: There’s now a 77% chance the Fed raises rates in December. https://t.co/T8PKfn5uPb
— Coinbase Predict (@CoinbasePredict) November 6, 2026
According to Business Insider, a number of prominent “job market observers” reacted to Friday’s jobs numbers.
“Friday’s stronger-than-expected jobs report could help to improve overall stock market sentiment, which is suffering from concerns about the direction of the AI buildout after the midterm election outcome,” Clark Bellin, president and chief investment officer at Bellwether Wealth, said.
The stock market crashed after the 2026 midterm elections, reportedly on account of fears that congressional Democrats intend to regulate and crack down on artificial intelligence technology.
“Demand is clearly picking up in parts of the economy, but we need to see it spread into more industries and create more opportunities for workers before we call this a broader hiring recovery,” Ger Doyle, regional president of North America at ManpowerGroup, also said, according to Business Insider.
Meanwhile, Steve Rick, chief economist at TruStage, warned that one good month doesn’t necessarily point to a consistently strong economy.
“One good month doesn’t undo a slowdown, just as one weak month doesn’t necessarily signal trouble ahead,” he said. “The broader trend will tell us more about whether hiring is beginning to regain momentum or simply experiencing a stronger month.”
Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management, added that she believes the Federal Reserve will ultimately raise rates again in December.
“This payroll number removed the traffic light at the December intersection for the Fed,” she said. “Fed focus was already firmly on moderating inflation, and continued signs of tightening in the labor market give it a license to raise rates without hindering its employment mandate.”
Business Insider reported that most of October’s job growth came from “professional and business services,” including “administrative and support workers.”
This article appeared originally on The Western Journal.
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