There were also big gains in manufacturing, construction and professional and business services payrolls.
"The report shows a booming USA economy with a sufficient whiff of wage inflation to keep the Fed on track to raise rates in December and at least twice next year", said David Kelly, chief global strategist at JPMorgan Funds in NY.
Some advocates, such as the left-leaning Economic Policy Institute, believe interest rates should remain relatively low until nominal wage growth reaches the 3.5% to 4% range at which inflation might start to rise more quickly. The Labor Department said Hurricane Michael, which struck Florida last month, "had no discernible effect" on the latest figures.
Average hourly earnings for production and non-supervisory workers increased 3.2 per cent from a year earlier, following 2.8 per cent in September. October marked the first time since the recession ended more than nine years ago that the closely watched pay gauge rose better than 3% from a year earlier. The average workweek increased to 34.5 hours from 34.4 hours in September.
Firming wages support views that inflation will hover around the Fed's 2.0 percent target for a while. The prime-age (25-54) labor force participation rate-which is an important indicator because it is not driven by demographics, but rather by the strength of the job market-increased by 0.4 p.p.to 89.0 percent among men and by 0.6 p.p.to 75.8 percent among women. The Fed is expected to raise rates for a fourth time this year in December, and economists expect at least two further increase next year.
The country now has 7.1 million job openings, a record high, the Labor Department announced Tuesday. The continued hiring and wage increases also reflect a tax-cut boost and reinforce expectations that the Federal Reserve will raise interest rates for a fourth time this year in December, though such an outlook may further unsettle investors who just sent United States stocks to their worst month since 2011.
The prospect of interest rates rising faster than financial markets anticipate has roiled the USA stock market, and Friday's robust report could renew the selling on Wall Street.
A strong labor market and rising wages should provide a boost to the housing market, which has seen sales fall in comparison to previous year with the uptick in rates.
Among the rosy employment statistics in Friday's monthly hiring report, one especially shines: Worker wages in the USA are finally taking off.
Three-quarters of Venice flooded after high tide
Meanwhile, the Italian Civil Protection Agency said Tuesday that the death toll from the fierce storms battering Italy rose to 11. Veneto regional governor Luca Zaia says flooding could reach the levels of the 1966 flood that struck both Venice and Florence.
Employment in the leisure and hospitality sector rose by 42,000 last month.
Retail payrolls probably remained weak, weighed down by layoffs related to Steinhoff's Mattress Firm bankruptcy as well as some store closures by Sears Holdings Corp.
Job gains occurred in health care, in manufacturing, in construction, and in transportation and warehousing.
That's forcing more companies to raise pay to attract and keep workers.
Among economists, there was wider agreement that the jobs report pointed to strength in the U.S. economy, despite recent worries that weakness may be emerging in some sectors such as housing and trade.
FBN's Blake Burman breaks down the October jobs report. It is not investment advice or a solution to buy or sell securities.
Wall Street opened higher after the numbers were released but closed down sharply as investors grew sceptical that a speedy resolution to the US-China trade dispute was likely.
Dean Popplewell has almost two decades of experience trading currencies and fixed income instruments.