That incorporates revised data for September, which saw an unusually low jobs figure thanks to Hurricane Florence.
USA job growth rebounded sharply in October and wages recorded their largest annual gain in 9-1/2 years, pointing to further labour market tightening that could encourage the Federal Reserve to raise interest rates again in December.
The economy added 250,000 jobs in October, the Bureau of Labor Statistics reported on November 2, with Hispanic unemployment dropping to 4.4 percent-a new record for data reaching back to 1973. "Keep it going, Vote Republican!"
White House economic adviser Larry Kudlow joked that he asked President Donald Trump not to tweet details of the October jobs report before they became public.
The US economy added another 250,000 jobs in October, beating expectations after slower growth in September.
Employment increased in health care, in manufacturing, in construction, and in transportation and warehousing.
At the same time, the unemployment rate remained at a five-decade low of 3.7 percent. Average hourly earnings rose 0.2 per cent month-on-month and 3.1 per cent year-on-year, up from 2.8 per cent growth in September. Given that the number of job openings around the USA has exceeded the number of job-seekers since March, it's likely businesses will have to try work harder to attract employees, said PNC Senior Economist Bill Adams.
The dollar was trading higher against a basket of currencies.
Stock futures rose on Friday after the release of the report. The probability of another 25 basis-point (one-quarter percentage point) rise in the federal funds target, from 2%-2.25% now, at the December 18-19 meeting of the Federal Open Market Committee continues to hover around 75%, according to Bloomberg data.
The increase in jobs marked the 97th straight month of gains.
But the anticipated bounce back in job growth is likely to be tempered some what by Hurricane Michael, which struck the Florida Panhandle in mid-October. The Fed raised borrowing costs in September for the third time this year.
Despite the recent improvements, wage gains are still soft compared with other periods of similarly low unemployment. There are a record 7.14 million open jobs.
Weekly wages rose even faster than hourly wages at 3.4 percent over the past year, the strongest increase in 11 years. Workers at United States Steel Corp (X.N) are set to receive a hefty pay rise also.
For all the positive news, these trends have caused many economists to forecast slower growth in the final months of this year and into 2019.
According to a report last week from the research arm of the payroll processing firm ADP, for instance, American workers are earning almost $1 more per hour on average than they were a year ago.
Analysts anticipated that unemployment would hold steady at 3.7 percent - a 49-year low - while forecasting the creation of 190,000 jobs, according to economists polled by Refinitiv (formerly Thomson Reuters). What we can say when looking on a longer-run basis is that payrolls growth has accelerated from an average of 182,000 per month in 2017 to 213,000 per month in 2018. ADP said the economy had added 227,000 jobs in October, with employers reporting they are now struggling to fill positions.
Service and construction workers are most likely to lose shifts during and after major storms. Jobs in the sector have been increasing despite weakness in the housing market.