Nonfarm payrolls grew 337,000 last month following upwardly revised gains of 139,000 and 198,000 during the prior two months. Consensus expectations had been for a 175,000 job rise in October.

Construction sector jobs grew 71,000 (3.9% y/y).

Hiring in private service producing industries also was quite strong, up 231,000 (1.8% y/y) following an upwardly revised September increase of 99,000. Hiring in professional & business services rose 97,000 (3.7% y/y) with temporary help services jobs up 47,600 (11.5% y/y). Jobs in the financial sector rose another 17,000 m/m (1.3% y/y) and education & health services jobs rose 62,000 (2.2% y/y). Government payrolls grew 41,000 (0.7% y/y).

Factory sector payrolls fell for the second consecutive month, down 5,000 (+0.3% y/y). Weakness was broad based across industries.

The index of aggregate hours worked (employment times hours worked) rose 0.3% (2.4% y/y) following an upwardly revised 0.4% gain in September. The index began the fourth quarter 2.0% (AR) above the prior quarter after 3.1% growth in 3Q.

Average hourly earnings rose 0.3% (2.6% y/y) after a downwardly revised 0.1% gain in September.

The unemployment rate from the separate household survey rose to 5.5% as a 298,000 (1.2% y/y) gain in employment lagged labor force growth of 367,000 (0.7% y/y). The labor force participation rate was unchanged at 65.9%.