The U.S. job market strengthened in October as employers added 165,000 jobs and the unemployment rate ticked down to 4.1%, according to the Labor Department. Revisions also showed stronger hiring in late summer, with August and September payrolls increased by a combined 84,000.
Gains were broad across several sectors, including health care, manufacturing, and professional and business services. Restaurants and construction firms reduced headcounts during the month. Average hourly pay rose 3.1% from a year earlier, a slightly faster pace than September but still likely trailing living costs.
165,000 jobs and a lower jobless rate
Inflation reached 3.7% in September and has generally outpaced wage growth this year, a trend tied in part to energy price spikes following the war with Iran. “Workers are losing ground right now,” said Cory Stahle, an economist with the Indeed job site, adding that the longer elevated prices persist, the more households will feel the strain.
Price pressures have weighed on voter sentiment, contributing to Republicans losing control of both the House and Senate in the recent midterm elections. With unemployment still historically low, the Federal Reserve has kept its focus on reining in inflation. The central bank left its benchmark rate unchanged last week, though investors expect policymakers to raise rates at their December meeting.
For Hawaiʻi households and businesses, the national figures reflect ongoing tight labor conditions alongside elevated costs, particularly for energy and transportation, which can ripple through to island prices. Those concerns echo the dynamics described in Mixed economic forecast looms over tight midterm races, where inflation and employment trends also shaped political outcomes.
