U.S. Adds 165,000 Jobs in October as Unemployment Hits 4.1%

U.S. employers added 165,000 jobs in October and the unemployment rate edged down to 4.1%, the Bureau of Labor Statistics reported at 8:30 a.m. ET Friday.

The payroll gain beat the Dow Jones consensus for about 59,000 new jobs cited by CNBC. BLS said professional and business services led with 70,000 jobs, health care added 42,000, transportation and warehousing 25,000 and manufacturing 19,000. Average hourly earnings rose 0.4% on the month to $38.00, up 3.1% over 12 months.

How the report feeds the Fed

The Employment Situation mixes two surveys. The establishment survey counts payroll jobs by industry. The household survey drives the unemployment rate. Stronger hiring and a firmer wage print can keep inflation pressure in view, which is why rate futures often reprice after the release.

August payrolls were revised up by 53,000 to 186,000 and September by 31,000 to 60,000, BLS said, a combined 84,000 more jobs than previously reported. The labor force participation rate stood at 61.9%. People working part time for economic reasons rose by 339,000 to 4.8 million.

After the print, CME Group's FedWatch tool showed about a 76.8% chance of a quarter-point rate increase at the Dec. 8-9 Federal Open Market Committee meeting, CNBC reported, up from levels before the release. A Reuters dispatch put futures pricing near an 80% probability of a December hike.

Bitcoin was about $75,920 around noon ET Friday (down about 0.6% over 24 hours), per CoinGecko.

In our opinion: for crypto readers, the stake sits at the December FOMC. A higher overnight rate can tighten liquidity for non-yielding assets. The next hard check is the Fed's own statement on Dec. 9.