US hiring exceeds expectations, as economy adds 261,000 jobs

The U.S. added 261,000 jobs in October, exceeding economist expectations and sending a positive signal for the economy days before the midterm elections.

The unemployment rate increased to 3.7%. However, unemployment has stood between a narrow range of 3.5% and 3.7% since March, the government data said.

The strongest job gains came in health care, manufacturing and professional and technical services.

The report arrives two days after Fed Chair Jerome Powell announced another jumbo-sized interest rate hike, intensifying the central bank's fight against inflation and stoking fears of a downturn.

The aggressive move is the latest in a string of borrowing cost increases imposed by the Fed in recent months as it tries to slash price increases by cooling the economy and choking off demand. The approach, however, risks tipping the U.S. into a recession and putting millions out of work.

While hiring has slowed from a breakneck pace earlier in the year, the labor market continues to defy recession concerns.

This is a developing story. Please check back for updates.

The video in the media player above was used in a previous report.