Job Growth More than Doubles Expectations in October

The U.S. economy added 165,000 nonfarm payroll jobs in October, blowing past analysts' predictions and driving down the unemployment rate, the U.S. Bureau of Labor Statistics (BLS) reported Friday.

The 165,000 jobs added in October more than doubled economists' expectation of a 65,000 gain and more than tripled the 48,000 average monthly growth of the previous 12 months.. Meanwhile, job growth in August and September was revised higher by a combined total of 84,000, increasing August's gain by 53,000 (from 133,000 to 186,000) and September's by 31,000 (from 29,000 to 60,000).

According to the BLS report, the labor force participation rate increased from 61.8% to 61.9%, while the ranks of the unemployed dipped by 41,000, but remained at about 7.1 million.

As a result, the nation's unemployment rate was 4.1% in October, down from 4.2% in September.

By industry sector:

• Professional and Business Services led the way in October by adding 70,000 jobs - far more than its average monthly gain of 15,000 over the prior 12 months.
• Health Care added 42,000 jobs in October and also bested its average monthly gain of 31,000 over the prior 12 months (+31,000).
• Transportation and Warehousing added 25,000 jobs.
• Manufacturing employment continued to trend up (+19,000) and has increased by 101,000 since a recent low in December 2025.

Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; construction; wholesale trade; retail trade; information; financial activities; social assistance; leisure and hospitality.

Federal government employment dipped by 1,000 jobs and the number of local government jobs declined by the same amount. But, with state governments adding 8,000 workers, total government payrolls increased by 6,000 jobs in October.

At 34.4 hours, the average workweek for all private nonfarm employees in October was unchanged from September's level. Average hourly earnings increased 0.4% to $38.00. Over the past 12 months, average hourly earnings have risen 3.1%.