US employers added 165,000 jobs in October and the unemployment rate edged down to 4.1%, the Bureau of Labor Statistics reported on Friday, 6 November 2026. The October jobs report beat every forecast on Wall Street, with hiring running at more than triple the average monthly gain of 48,000 over the previous 12 months.
The Bureau of Labor Statistics release also revised the two previous months sharply higher, adding a combined 84,000 jobs to August and September. August’s gain rose to 186,000 from 133,000, while September’s rose to 60,000 from 29,000.
October jobs report at a glance
| Measure | October 2026 | September 2026 |
|---|---|---|
| Nonfarm payrolls | +165,000 | +60,000 (revised) |
| Unemployment rate | 4.1% | 4.2% |
| Unemployed people | 7.1 million | Little changed |
| Average hourly earnings | $38.00 (+0.4%) | +0.4% on the month |
| Wage growth, year on year | +3.1% | — |
| Labour force participation | 61.9% | Little changed |
| Average workweek | 34.4 hours | Unchanged |
Hiring beat every forecast
Economists polled by Reuters had expected payrolls to rise by just 65,000, with estimates ranging from 35,000 to 125,000. The actual gain of 165,000 topped even the most optimistic forecast in the survey, and the unemployment rate fell instead of holding at 4.2% as expected.
The result also cleared the bar economists use to judge whether hiring is keeping pace with population growth. Reuters reported that the economy needs roughly 40,000 new jobs a month to keep up with growth in the working-age population, a threshold October cleared more than four times over.
The revisions mattered as much as the headline. The first estimate of any month’s payrolls is an early reading that the bureau updates as more employers report, and the August and September upgrades painted a stronger summer than the original figures suggested. The strong report followed a brutal week on Wall Street, where the Nasdaq’s sharp sell-off had pushed the technology-heavy index into correction territory.
Where the jobs showed up
Hiring was broad, but three sectors did most of the work. Professional and business services led the way with 70,000 new jobs, far above its average monthly gain of 15,000 over the previous year, while health care added 42,000 and transportation and warehousing added 25,000.
| Sector | Jobs added in October | Detail |
|---|---|---|
| Professional and business services | +70,000 | Professional, scientific and technical services +33,000; administrative and support services +28,000 |
| Health care | +42,000 | Hospitals +16,000; home health care +11,000; outpatient care centres +5,000 |
| Transportation and warehousing | +25,000 | Couriers and messengers +17,000; air transportation +4,000 |
| Manufacturing | +19,000 | Up 101,000 since a recent low in December 2025 |
| Construction, retail, leisure and hospitality, government | Little change | Employment flat across these major industries |
Manufacturing kept its slow comeback going, adding 19,000 jobs in October and 101,000 since a recent low in December 2025. Construction, retail trade, leisure and hospitality and government employment showed little change over the month, according to the bureau.
Pay rose, hours held steady
Average hourly earnings for all employees on private nonfarm payrolls rose by 14 cents, or 0.4%, to $38.00 in October. Over the past 12 months, average hourly earnings have increased by 3.1%, a pace that keeps pay ahead of the inflation figures reported in recent months.
The average workweek stayed at 34.4 hours, while the manufacturing workweek held at 40.5 hours. Production and nonsupervisory workers, who make up most of the private-sector workforce, saw their average hourly pay rise 12 cents to $32.75.
The softer numbers beneath the headline
Not every figure in the report pointed the same way. The number of people working part time for economic reasons jumped by 339,000 to 4.8 million, meaning they wanted full-time work but had their hours cut or could not find a full-time job.
The number of long-term unemployed, those jobless for 27 weeks or more, stood at 2.0 million, accounting for 27.6% of all unemployed people. Reuters also noted that limited openings have made it difficult for young adults and recent college graduates to find work, even as overall hiring strengthened.
Disenchantment over the economy had already shaped the political calendar. Voters put the cost of living at the top of their concerns in the campaign that ended with the Democrats’ midterm sweep of Congress on 3 November, and the jobs report is the first major economic reading since that vote.
What it means for the Federal Reserve
The resilient labour market gives the Federal Reserve more room to focus on inflation, which has been pushed higher by rising energy prices linked to the Middle East conflict. The Fed left its benchmark overnight interest rate in the 3.75% to 4.00% range last week, and economists expect a rate rise in December.
Two more data points arrive before that decision. October’s consumer inflation report is scheduled for Tuesday, 10 November, and the next jobs report, covering November, is due on Friday, 4 December. Together they will show whether October’s hiring strength was a turning point or a single strong month in an uneven year.
October jobs report: your questions answered
How many jobs did the US add in October 2026? Employers added 165,000 nonfarm payroll jobs in October, according to the Bureau of Labor Statistics, more than triple the average monthly gain of 48,000 over the previous 12 months.
What is the unemployment rate now? The unemployment rate fell to 4.1% in October from 4.2% in September, with 7.1 million people unemployed. The rate has stayed within a narrow range of 4.1% to 4.3% since March.
Which industries added the most jobs in October? Professional and business services added 70,000 jobs, health care added 42,000, transportation and warehousing added 25,000, and manufacturing added 19,000.
Did the jobs report change expectations for the Federal Reserve? Economists expect the Fed to raise interest rates in December, and the strong hiring gives it more scope to focus on inflation. October’s inflation report on 10 November will be the next major clue.
When is the next US jobs report? The Employment Situation report for November 2026 is scheduled for release on Friday, 4 December 2026, at 8:30 a.m. Eastern.
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