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Job growth was stronger than expected in October despite Federal Reserve interest rate increases aimed at slowing what is still a strong labor market . Nonfarm payrolls grew by 261,000 for the month while the unemployment rate moved higher to 3.7%, the Labor Department reported Friday. Those payroll numbers were better than the Dow Jones estimate for 205,000 more jobs but worse than the 3.5% estimate for the unemployment rate. Average hourly earnings grew 4.7% from a year ago and 0.4% for the month, indicating that wage growth is still likely to pressure inflation. The yearly growth met expectations while the monthly gain was slightly ahead of the 0.3% estimate. The new figures come as the Fed is on a campaign to bring down inflation running at an annual rate of 8.2%, according to one government gauge. Earlier this week, the central bank approved its fourth consecutive 0.75 percentage point interest rate increase, taking benchmark borrowing rates to a range of 3.75%-4%. Those hikes ar...

U.S. Federal Reserve Board Chairman Jerome Powell speaks during a news conference following a meeting of the Federal Open Market Committee (FOMC) at the headquarters of the Federal Reserve on September 21, 2022 in Washington, DC. Drew Angerer | Getty Images Federal Reserve officials have been surprised at the pace of inflation and indicated at their last meeting that they expect higher interest rates to remain in place until prices come down, according to minutes released Wednesday from the central bank's September meeting. In discussions leading up to a 0.75 percentage point rate hike, policymakers noted that inflation is especially taking its toll on lower-income Americans. They reiterated rate hikes are likely to continue and higher rates prevail until the problem is showing signs of resolving. "Participants judged that the Committee needed to move to, and then maintain, a more restrictive policy stance in order to meet the Committee's legislative mandate to promote ...

Hinterhaus Productions | Getty Images There are signs the hot job market is cooling — but workers still have bargaining power for now, according to labor economists. Job openings, a barometer of employers' demand for workers, saw a near-record monthly decline in August. Openings fell by 1.1 million to 10.1 million, according to U.S. Department of Labor data issued Tuesday — a monthly decrease eclipsed only by April 2020, in the early days of the pandemic, when they fell by roughly 1.2 million. The Federal Reserve is raising borrowing costs for consumers and businesses to pump the brakes on the U.S. economy and reduce inflation. Central bank officials hope that a cooling labor market will translate to lower wage growth, which has been running at its highest pace in decades and contributes to inflation. More from Personal Finance: CNBC ranks the top-rated financial advisory firms of 2022 This is the best time to apply for college financial aid Parents who missed out on $3,600 child t...

Catherine Mcqueen | Moment | Getty Images The unemployment rate ticked up to 3.7% in August, the Labor Department said Friday. While more people becoming unemployed may sound alarming, especially against the backdrop of lingering worries about a recession, the increase was for "good" reasons, according to labor economists. A higher unemployment rate was "the best news in this report," according to Julia Pollak, chief economist at ZipRecruiter. That may seem counterintuitive. How can an increase in the jobless rate be positive? The answer lies in the labor-market dynamics underpinning the jump. More from Personal Finance: White House fires back at Republicans planning to challenge student loan forgiveness These states may tax federal student loan forgiveness These bank fees could be taking a bite out of your budget Why the unemployment rate increased in August The unemployment rate increased by 0.2 percentage points from 3.5% in July — a level that had tied with ear...