The U.S. Economy Added 531,000 Jobs in October, Better Than Expected

The U.S. economy added 531,000 jobs in October and the unemployment fell to 4.6 percent.

Economists had expected 400,000 positions added to payrolls and an unemployment rate of 4.7 percent, according to Econoday.

Enhanced unemployment benefits were ended in September, likely prompting many people who were out of work during the summer months to return to work.

The government sector contracted during the month. Businesses added 604,000 jobs. Manufacturers added 60,000 jobs, a very big month of hiring for the sector.

Wage growth slowed from 0.6 percent in September to 0.4 percent in October. The workforce participation rate was unchanged at 61.6 percent, missing expectations for an improvement to 61.8 percent.

The number of Covid-19 infections fell sharply in October, which may have also encouraged job growth.

The racial gap in unemployment expanded in October as the white unemployment rate fell to 4.0 percent from 4.2 percent and the black unemployment rate was unchanged at 7.9 percent. Among adult men, the white unemployment rate fell from 4.2 percent to 3.6 percent while the black unemployment rate rose three-tenths of a percent to 8.3 percent.