US adds 165,000 jobs in October as labour market beats expectations

Employment in the United States grew by 165,000 jobs in October, far exceeding analysts’ expectations, with the unemployment rate dipping to 4.1 per cent, government data showed on Friday.

The relatively stable labour market has allowed the US Federal Reserve – which has a dual mandate to maintain inflation at a long-term 2 per cent target while ensuring maximum employment – to make fighting stubbornly high prices its priority.

The strong October data could add to pressure for further rate hikes. That would put the Fed at odds with President Donald Trump, who has repeatedly called for lower borrowing costs and responded to the central bank’s rate hike in September by demanding: “LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!”