U.S. Job Growth Beats Forecasts With 165,000 New Positions

Workers in the United States gained 165,000 jobs in October, a figure that exceeded the 65,000 new positions economists had predicted for the month. The U.S. Bureau of Labor Statistics released the data on Friday, showing a labor market that outperformed expectations in the weeks following the midterm elections.

The unemployment rate declined to 4.1% from 4.2% in the previous month. Approximately 7.1 million people in the country remain unemployed. This rate has stayed within the 4.1% to 4.3% band since March 2026. The October increase of 165,000 jobs was nearly three times larger than the 60,000 jobs added in September.

Professional and business services led the expansion by adding 70,000 positions. This monthly gain is well above the 12-month average of 15,000. Growth in this category came from technical services, administrative support, waste management, and corporate management roles. Health care services added 42,000 jobs, surpassing its 12-month average of 31,000. Hospitals contributed 16,000 of those new roles, while home health care services added 11,000.

Transportation and warehousing added 25,000 jobs in October. This sector has grown steadily since hitting a low point in February, accumulating 104,000 new positions over that period. Manufacturing also saw upward movement with 19,000 additional jobs. Computer and electronic manufacturing accounted for 7,000 of those gains, while machinery and metal manufacturing each added 4,000.

Average hourly earnings for private nonfarm employees rose by 14 cents, or 0.4%, to reach $38.00. The average work week for these employees remained steady at 34.4 hours. In the manufacturing sector, average hours held at 40.5 per week. Overtime in manufacturing increased by 0.1 hours to 3.1 hours.

Data from the report also tracked individuals who were not actively seeking work but desired employment. There were 1.6 million such people in October, a figure that showed little change from the prior month. Of that group, 448,000 were classified as discouraged workers because they believed no jobs were available to them.