Massive Job Gains of 165,000 in October Bolster Case for More Fed Rate Hikes

Following a disappointing September, U.S. payrolls came roaring back in October as employers went on a hiring spree, adding 165,000 new jobs and pushing the unemployment rate down to 4.1%. The latest report from the Bureau of Labor Statistics, released Friday, shows nonfarm payroll growth more than doubled initial forecasts. These stronger-than-expected job figures increase the likelihood that the Federal Reserve will remain laser-focused on inflation and raise interest rates at the next Federal Open Market Committee (FOMC) meeting in December. Work sectors that saw the strongest growth in October included professional and business services, which added 70,000 in jobs, well above the average monthly gain of 15,000 over the past 12 months.Health care came a distant second, with 42,000 payrolls added, followed by transportation and warehousing (+25,000 jobs), and manufacturing (+19,000). Meanwhile, the September employment data was revised up by 31,000 jobs, from +29,000 to +60,000, while the employment in August was revised up by 53,000, from +133,000 to +186,000. With these revisions, employment across these two months combined was 84,000 higher than previously reported.This is a d...