More new jobs added in US as unemployment eases

The US economy added more jobs than anticipated in October, with nonfarm payrolls rising by 165,000, surpassing expectations. This positive employment growth came after an upward revision of 60,000 jobs in September, according to the US Labor Department's Bureau of Labor Statistics. Economists polled by Reuters had anticipated a 65,000 job increase, following a previously reported gain of 29,000 in September.

Experts estimated that the economy required at least 40,000 monthly job creation to keep pace with population growth. The unemployment rate declined to 4.1 percent from 4.2 percent in September, bringing the so-called breakeven rate down from around 150,000 in 2024 due to a smaller labor force. Despite historically low job cuts and an uptick in job openings, economists and US central bank officials have insisted that the labor market poses no inflation risk.

Some analysts argue that a shrinking workforce, driven by immigration restrictions and retirements, is the main reason behind the low unemployment rate. Meanwhile, Canada's unemployment rate rose to a six-month high of 6.7 percent in October, up from 6.5 percent in September, as reported by Statistics Canada. The country's economy shed a few thousand jobs, totaling 4,700 lost in October, bringing the year's total job losses to 46,000.

The October data illustrates the ongoing labor market weakness in Canada, which has not seen any job growth on average this year amidst rising trade tensions with the US and a shift towards cost-saving measures by businesses.