American employers added 165,000 jobs in October, far more than economists had expected, and the unemployment rate edged down to 4.1%, the Bureau of Labor Statistics reported on Friday. Reuters reported that economists polled by the news agency had forecast a gain of only 65,000 jobs.

The result was well above the average monthly gain of 48,000 recorded over the previous 12 months, and it suggested the labour market remained resilient despite a difficult year for hiring. September's gain was revised up to 60,000 from an initial estimate of 29,000, and August's figure was revised up to 186,000.

Wages rise as hiring beats expectations

Average hourly earnings rose by 14 cents to $38.00 in October, a monthly increase of 0.4% and a rise of 3.1% over the year, USA Today reported. The labour force participation rate inched up to 61.9% from 61.8% in September, while about 7.1 million people were unemployed.

The stronger report pushed Treasury yields higher and strengthened market expectations that the Federal Reserve will raise interest rates in December. Reuters reported that market bets on a December rate rise climbed to 78% from 70% after the release.

What comes next for the Fed

Federal Reserve policymakers will weigh the jobs figures alongside the next inflation report, due on 10 November, before their final meeting of the year. The October figures are preliminary and subject to revision, as with all monthly employment reports.