More new jobs added in US as unemployment eases

US nonfarm payrolls increased more than expected in October and the unemployment rate fell to 4.1 percent, suggesting the labour market remained resilient and giving the Federal Reserve more scope to focus on inflation stemming from the Middle East conflict. Payrolls jumped by 165,000 jobs last month after an upwardly revised 60,000 gain in September, the US Labor Department's Bureau of Labor Statistics said on Friday. Economists polled by Reuters had forecast payrolls advancing 65,000 after a previously reported 29,000 increase in September. Estimates ranged from 35,000 to 125,000 jobs. Economists estimated the economy needed to create at least 40,000 jobs per month to keep up with growth in the working-age population. The so-called breakeven rate has declined from roughly 150,000 in 2024 because of the smaller labour force. The unemployment rate declined from 4.2 percent in September. Historically low layoffs and a recent jump in job openings have raised the prospect of labour market tightening. But economists and US central bank officials have maintained that the labour market poses no inflation risk. Some economists have argued that a shrinking supply of workers amid an immigration crackdown and retirements is the primary driver of the relatively low unemployment rate. Meanwhile, Canada's unemployment rate went up to...