Labor data shows October hiring surge ahead of midterm results

The U.S. labor market showed renewed strength in October, with hiring accelerating beyond projections just days after the midterm elections.

The Bureau of Labor Statistics reported on Friday that employers added 165,000 seasonally adjusted jobs. This figure was nearly three times the 59,000 jobs that economists surveyed by Dow Jones had predicted, according to CNBC data.

The headline unemployment rate declined from 4.2% in September to 4.1% in October. Conversely, the U-6 measure, which counts discouraged workers and part-time employees seeking full-time work, increased from 7.6% to 7.9%.

The agency also revised job figures for the two months preceding the vote. August job gains were raised by 53,000 to a total of 186,000, while September gains were raised by 31,000 to 60,000. These adjustments indicate that employers created 84,000 more positions over that period than initially reported.

Professional and business services drove the October growth, accounting for 70,000 of the new jobs. Health care followed with 42,000, while transportation and warehousing added 25,000 and manufacturing added 19,000.

Average hourly earnings climbed 3.1% from a year earlier. This wage growth outpaced economist expectations but remained below the most recent inflation figures. The October consumer price report is scheduled for release on Tuesday.

Average hourly earnings rose 3.1% from a year earlier, exceeding forecasts but trailing the latest inflation rate.