By — Paul Wiseman, Associated Press Paul Wiseman, Associated Press Leave your feedback Share Copy URL https://www.pbs.org/newshour/economy/u-s-continues-to-generate-jobs-yet-inflation-is-eroding-americans-spending-power Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter U.S. continues to generate jobs, yet inflation is eroding Americans' spending power Economy Nov 6, 2026 11:23 AM EST WASHINGTON (AP) — U.S. employers created a surprising 165,000 new jobs last month, and the unemployment rate dipped to 4.1%. Hiring was far stronger than the 65,000 new jobs that economists had expected. READ MORE: How Trump and Republicans lost the 2026 midterm elections, according to AP Voter Poll The jobs report comes three days after voters delivered a stunning defeat to President Donald Trump and his Republican Party in midterm elections. Frustrated with the state of the economy — and especially the high cost of living – Americans handed full control of Congress to the Democrats. Stand with free and independent journalism. Join Press Pass from PBS News But the latest jobs report looked solid. Labor Department revisions added a combined 84,000 new jobs to the August and September totals. The…
U.S. continues to generate jobs, yet inflation is eroding Americans' spending power
In short
Employers beat projections by adding 165,000 positions last month, while the Labor Department also revised upward prior figures for August and September by 84,000 jobs. Despite 421,000 workers entering the labor force, persistent price pressures continue to outpace worker earnings and dampen household finances. The hospitality sector notably struggled amid the broader expansion, shedding 10,600 positions during the period. These persistent inflationary pressures and labor gains have prompted financial markets to price in a 77% chance of a central bank rate hike next month.
Key points
- Persistent inflation continues to depress household purchasing power because hourly wages…: Persistent inflation continues to depress household purchasing power because hourly wages grew only 3.1% over the past year.
- Financial markets now estimate a 77% probability that the Federal Reserve will raise benc…: Financial markets now estimate a 77% probability that the Federal Reserve will raise benchmark interest rates in December.
- Widespread voter frustration over elevated living expenses played a major role in Democra…: Widespread voter frustration over elevated living expenses played a major role in Democrats securing control of Congress.