US Economy Adds 165,000 Jobs in October, Exceeding Expectations
The Department of Labor released its closely watched October 2026 jobs report, revealing a robust performance by the U.S. economy. In contrast to the softer September figures, October saw a rebound with 165,000 new jobs added—far surpassing the 65,000 estimate by economists.
Key Findings:
- Unemployment Rate: Dropped to 4.1%, lower than expected, with economists predicting a steady 4.2%.
- Revisions: August's payroll numbers were revised upward by 53,000 jobs, and September's increase was adjusted to 60,000 from the initially reported 29,000.
- Employment Growth: Across August and September, employment increased by 84,000 jobs more than previously reported.
Sectoral Performance in October 2026:
- Private Sector: Grew by 159,000 jobs, well above the anticipated 64,000.
- Government: Saw a 6,000 job increase, with a revision from a 17,000 loss in September to a 18,000 loss in October.
- Manufacturing: Added 19,000 jobs, exceeding the predicted 5,000. September's gain was also revised up to 13,000.
- Professional and Business Services: Created 70,000 jobs, significantly above the average monthly gain of 15,000 over the past year. The sector's growth was led by professional, scientific, and technical services (+32,900) and administrative and support services (+28,100).
- Healthcare: Contributed 41,600 jobs, above the average monthly gain of 31,000 over the last year. Significant increases were seen in hospitals (+16,000), home healthcare (+10,500), and outpatient care centers (+4,800).
- Transportation and Warehousing: Added 24,800 jobs, with growth in couriers and messengers (+17,400) and air transportation (+3,500).
Additional Insights:
- Long-Term Unemployed: Remained at 2 million in October, accounting for 27.6% of the total unemployed population.
- Part-Time Employment: Rose by 339,000 to 4.8 million, with individuals preferring full-time work but unable to find it.
- Labor Force Participation: Stood at 61.9% and the employment-population ratio was 59.3%, both unchanged from January.
- Average Hourly Earnings: Increased 3.1% year-over-year, above the predicted 2.4% rise, and grew 0.4% monthly, exceeding the estimated 0.3%.
Expert Analysis:
Seema Shah, Chief Global Strategist at Principal Asset Management, noted that the report refutes concerns about a potential economic slowdown, stating, "Payrolls growth surprised firmly to the upside... pointing to an economy that is still absorbing labor comfortably rather than one beginning to buckle under tighter financial conditions."