Charting the global economy: Job growth in US tops all forecasts

US employment rose significantly last month, with the jobless rate declining to 4.1%, indicating robust economic activity. Labor productivity increased sharply in the third quarter, reflecting business adaptation to rising costs and greater efficiency.

(Bloomberg) -- Employment growth in the US last month exceeded all projections, the jobless rate fell and worker pay rose as solid economic activity bolstered the labor market.

Resilient consumer spending and vibrant business investment are supporting demand and encouraging companies to add more workers. Separate data showed US labor productivity rose in the third quarter by the most in a year as businesses step up efforts to allay higher costs.

Meanwhile, Canada's job market continued to soften, inflationary pressures mounted in the euro area and central bankers in the UK and Australia raised interest rates.

Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, markets and geopolitics:

US & Canada

Payrolls increased 165,000 last month and job gains in the prior two months were revised up. The

unemployment rate fell to 4.1%. Employers across a broad range of sectors added jobs, including in professional and business services, healthcare and manufacturing. Overall private-sector employment growth was the strongest since March.

Labor productivity accelerated in the third quarter at the fastest pace in a year, suggesting a capital spending boom is translating into greater efficiency at a time when input costs have soared.

Canada's unemployment rate edged up to 6.7% in October as more people looked for work and employment fell slightly, pointing to ongoing softness in the labor market. The job market has stalled in 2026 as US tariffs continue to punish some sectors of the economy.

Europe

The Bank of England signaled it was poised to raise interest rates again in the coming months as policymakers backed the first increase in more than three years and warned inflation would approach 5% next year. The BOE forecasts consumer price inflation to peak at 4.9% in the second quarter of next year, its highest since September 2023.

German industrial production rose for a second month, bolstering hopes that the economy will muster a turnaround after years of stagnation. The gain was mostly driven by the automotive and pharmaceutical industries, the statistics office said.

Euro-area inflation quickened to double the European Central Bank's target, supporting the case for interest rates to be raised further. Consumer prices rose 4% from a year ago in October, up from 3.8% the previous month, the fastest since September 2023.

Switzerland's inflation rate rose to the highest level in almost three years, driven by the surge in oil costs and a weaker franc. While the reading is within the Swiss National Bank's 0-2% range, it's already noticeably above the 1.2% forecast of policymakers for the fourth quarter.

Asia & Australia

Cheaper loans and greater access to credit have helped millions of aspiring middle-class Indians spend more, but borrowing is rising much faster than incomes and well-paying jobs. Household borrowing surged 36% in the year through March, taking consumer debt to a record 46% of gross domestic product, according to central bank data.

Indonesia's economy unexpectedly accelerated in the third quarter as government stimulus helped household consumption and investment withstand challenging global conditions. The latest growth print shows the underlying strength of Southeast Asia's largest economy, despite being battered by market turmoil and political risk.

Australia's central bank Governor Michele Bullock signaled a wait-and-see approach to further tightening after policymakers lifted the benchmark rate to an 18-year high, in a split vote that sent the currency lower. The Reserve Bank chief highlighted that the tightening to date this year has yet to feed through to the economy, while reiterating the ongoing inflation challenge.

Emerging Markets

Mexico's central bank unexpectedly cut its benchmark interest rate to a four-year low of 6.25%, saying it plans to hold it there going forward.

Saudi Arabia's quarterly fiscal deficit more than doubled as the kingdom's oil revenues tumbled on the back of disruptions from the US-Iran war and lower fees paid by state oil giant Aramco. The government posted a budget shortfall of 84 billion riyals ($22.4 billion) in the third quarter, up about 145% from the prior period.

World

In addition to the UK and Australia, central banks in Sweden, Armenia and the Czech Republic raised interest rates. Norway, Brazil, Poland and Malaysia kept borrowing costs unchanged.