U.S. Adds 165,000 Jobs in October, More Than Double Expectations

Key Facts

The United States added 165,000 nonfarm jobs in October, according to a Bureau of Labor Statistics report released on November 6, exceeding economists' expectations of 65,000, based on a survey cited by the Associated Press from FactSet. The increase topped the average monthly gain of 48,000 over the previous twelve months. The reading points to continued hiring at a stronger pace than last year's average, although the unemployment rate and number of unemployed changed little. The unemployment rate was 4.1%, with 7.1 million people out of work. The rate has remained in a range between 4.1% and 4.3% since March, the bureau said.

The professional and business services sector led October's gains, adding 70,000 jobs, above its average monthly increase of 15,000 over the previous twelve months. The gain included 33,000 jobs in professional, scientific and technical services, and 28,000 in administrative and support, waste management and remediation services. Healthcare added 42,000 jobs, including 16,000 in hospitals, 11,000 in home healthcare and 5,000 in outpatient care centers. Employment in transportation and warehousing rose by 25,000, including 17,000 in couriers and messengers and 4,000 in air transportation. Manufacturing employment rose by 19,000 in October, while it changed little in sectors including construction, retail, financial activities and government.

Average hourly earnings for private-sector, nonfarm employees rose 14 cents, or 0.4%, to $38.00 in October. In the twelve months through the same month, the average increased 3.1%. By contrast, the Associated Press reported that average wages adjusted for inflation fell 0.7% in September from a year earlier, marking their sixth consecutive annual decline. The report also showed the number of people working part time for economic reasons increased by 339,000 to 4.8 million. They prefer full-time work but are working part time because their hours were cut or they could not find a full-time job. The figures put nominal wage growth alongside continued declines in real wages in the September reading and a rise in involuntary part-time work in October.

The labor force participation rate rose to 61.9% in October from 61.8% in September, while the employment-to-population ratio increased to 59.3% from 59.2%, according to Labor Department data. This came as the unemployment rate held at 4.1%. The Bureau of Labor Statistics revised its estimate of jobs added in August up by 53,000 to 186,000, from the previous estimate of 133,000. It also revised September up by 31,000 to 60,000, from 29,000. Together, the estimates for the two months were 84,000 jobs higher than previously reported, adding to the picture of hiring in the months before October's report.

The Associated Press puts October's gains in the context of a year in which average job growth remains below previous levels: the monthly average was 68,000 through October, compared with an average of 166,000 in 2023 and 2024. The agency said the labor market and economy had shown resilience in the face of shocks including U.S. tariffs on imports and the war with Iran. Gross domestic product grew at an annualized pace of 3.4% from July through September, supported by strong consumer spending and a boom in artificial intelligence investment, according to the agency. In manufacturing, the Bureau of Labor Statistics said employment had risen by 101,000 jobs since reaching a recent low in December 2025. The sector added 19,000 jobs in October.

The jobs report came after the Federal Reserve's October 28 decision to hold its target interest rate range between 3.75% and 4%, in a 10-to-2 vote. Lisa Cook and Beth Hammack favored raising the range by a quarter of a percentage point, while the committee said inflation remained elevated and its longer-run goal was 2%. The Bureau of Labor Statistics has scheduled the November report for December 4, 2026, at 8:30 a.m. Eastern time. The Federal Open Market Committee is scheduled to hold its next meeting on December 8 and 9, with a press conference listed among the meeting materials. The schedule puts the next jobs report and monetary policy decision in December.