jobs
The October jobs report surprised to the upside in October. Justin Sullivan/Getty Images

Job creation blew past expectations in October, according to the latest figures released by the Bureau of Labor Statistics.

Nonfarm payrolls climbed by a seasonally adjusted 165,000 last month, way above the 59,000 expected by the Dow Jones consensus.

At the same time, the unemployment rate fell to 4.1%, lower than the 4.2% expected by analysts.

Previous months were also revised to the upside. August added more than 50,000 additional extra jobs, while September gained 31,000 more than originally reported.

Payroll gains were also better than expected, with average hourly gains climbing 0.4% last month and 3.1% for the year, compared to 0.3% and 2.9%, respectively.

U.S. Treasury yields climbed after the figures came in. The benchmark 10-year Treasury gained over 6 basis point and went back above 4.9%, while the 30-year note rose 5 basis points and stood above 5.3% at 8:50 a.m. ET.

Odds of a rate hike by the Federal Reserve climbed after the report. They now stand at almost 75%, compared to 67% on Thursday, according to the CME Group's FedWatch tool.

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Private sector figures also surprised to the upside earlier this week. ADP showed that companies added 86,000 jobs, compared to the 75,000 expected by the Dow Jones consensus.

ADP said that "hiring showed solid growth for a second month and pay gains were steady," but noted there were "weak spots," as "professional and business services lost jobs for the third straight month."

"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. Taken together, earnings growth for these workers hit its fastest pace since March 2024," said Dr. Nela Richardson, ADP's Chief Economist.

Trade, transportation and utilities gained some 39,000 new roles. Education and health services kept hiring, with 28,000 jobs, while leisure and hospitality gained 19,000. In contrast, professional and business services shed 27,000 positions. Natural resources and mining lost 8,000.