# U.S. continues to generate jobs, yet inflation is eroding Americans’ spending power

- URL: https://talkfuse.com/story/u-s-continues-to-generate-jobs-yet-inflation-is-eroding-americans-spending-power/
- Published: 2026-11-06T16:23:26+00:00
- Updated: 2026-11-06T19:13:08+00:00
- Original publisher: PBS NewsHour (publisher lean: Centre)
- Original article: https://www.pbs.org/newshour/economy/u-s-continues-to-generate-jobs-yet-inflation-is-eroding-americans-spending-power
- Topics: Americas, Business, Economy, Politics, World

## Key points

- October hiring beat forecasts, with 165,000 jobs added.
- Unemployment fell to 4.1%.
- Wages are still lagging inflation over the year.

## Summary

US employers added 165,000 jobs in October, far exceeding economists’ expectations, while unemployment fell to 4.1%. The report suggests the labour market remains resilient, giving the Federal Reserve more room to focus on inflation, even as voters have made the cost of living a central political concern.

Average hourly pay rose 0.4% from September, its strongest monthly increase since January, but was only 3.1% higher than a year earlier, leaving many workers with reduced spending power. Professional and business services added 70,000 jobs, healthcare nearly 42,000 and manufacturing 19,000, while hospitality lost 10,600; revisions also added 84,000 jobs to the previous two months’ totals. Hiring has averaged 86,000 jobs a month this year, up from 9,700 in 2025 but below the 166,000 monthly average of 2023 and 2024, and investors raised the estimated chance of a December rate increase to 77%.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.