Surprise gain in October jobs reinforces Fed’s plan to pause rate cuts

The stronger-than-expected October jobs report and big revisions to prior months shows that the labor market is resilient and that should encourage the Fed to stay on the sidelines.

The economy added 128,000 jobs in October, despite the negative impact of a General Motors strike, which reduced vehicle and parts manufacturing jobs by 42,000. Economists had expected a total of just 75,000 payrolls, according to Dow Jones. Payrolls for August and September were revised higher by 95,000 jobs, bringing the average for the year to 167,000 per month, below last year’s average gain of 223,000.

“The labor market is still…