October Jobs Report: US Adds 165,000 Jobs, Beating Forecasts as Unemployment Falls

US employers added 165,000 jobs in October 2026, far above what economists had forecast, the Bureau of Labor Statistics reported on Friday, November 6, 2026, in the strongest monthly hiring gain in more than a year and a sharp break from the weak payrolls of recent months.

Key Points

• Nonfarm payrolls rose by 165,000 in October, more than double the 65,000 economists polled by Reuters had expected, and more than triple the average monthly gain of 48,000 over the previous 12 months.
• The unemployment rate fell to 4.1% from 4.2% in September, while the labour force participation rate inched up to 61.9% from 61.8%.
• September's gain was revised up to 60,000 from 29,000, and August's was raised by 53,000 to 186,000, adding a combined 84,000 jobs to earlier estimates.
• Professional and business services led October hiring with 70,000 new jobs, far above its average monthly gain of 15,000 over the past year.
• Average hourly earnings rose 14 cents, or 0.4%, to $38.00, up 3.1% over the past 12 months.

What Happened

The Labor Department released the October employment report at 8:30 a.m. ET on Friday, and most headline figures beat expectations. Payrolls rose by 165,000, against a Reuters forecast of 65,000, with individual estimates ranging from 35,000 to 125,000.

The unemployment rate fell to 4.1% from 4.2% in September, and the labour force participation rate edged up to 61.9% from 61.8%, suggesting the improvement came from people finding work rather than leaving the workforce. The details were more mixed: the number of people working part time for economic reasons rose by 339,000 to 4.8 million, while long-term unemployment held at 2.0 million, or 27.6% of all unemployed people.

Revisions told the same stronger story. September's gain was revised up to 60,000 from 29,000, and August's was lifted by 53,000 to 186,000, a combined 84,000 more jobs than previously reported. The revisions erased much of the gloom from the late-summer data and made October's beat look like a firmer trend rather than a one-month outlier.

Background and Context

The report arrived after months in which the jobs market looked stuck. Payrolls had averaged only 48,000 a month over the previous year, and September's initial reading of 29,000 had fed fears that hiring was close to stalling. Weekly jobless claims, by contrast, had stayed near historic lows, falling to 189,000 in the week ended October 31, matching the lowest level since 1969.

The timing added to the report's weight. It landed a day after Wall Street's worst selloff since April 2025, when the Nasdaq fell 5.5% as doubts about the payoff from heavy spending on artificial intelligence sent technology stocks tumbling. The strong jobs figures reminded investors that the real economy is still adding workers at a healthy pace, even as markets question the valuations of the AI boom.

Professional and business services drove the October gain, adding 70,000 jobs against an average of 15,000 a month over the past year. The sector includes consulting, staffing and technical services firms that expand first when companies feel confident enough to take on new work. Wages also kept pace with inflation: average hourly earnings rose 0.4% to $38.00, up 3.1% over the past 12 months.

October Jobs Report: What the 165,000 Figure Means

The headline number resets the picture of the labour market. A gain of 165,000 is not just a beat against a 65,000 forecast; it is more than three times the recent monthly average, and it came with upward revisions to the two previous months. Together, the three months now show a labour market that slowed over the summer and then reaccelerated, rather than one sliding toward a stall.

The unemployment rate's fall to 4.1% reinforces that reading. Unemployment had been drifting up through the autumn, and a drop alongside a rising participation rate is the combination economists look for to confirm a genuine improvement. The caveats remain: part-time work for economic reasons jumped by 339,000, and long-term unemployment is still 27.6% of the total.

Reactions and Quotes

No verbatim quotes from Federal Reserve officials or administration figures were published with the Labor Department's release, and the wire reports carried the figures without attributed comment. The reaction visible in the data was the size of the miss: economists had expected 65,000, and the 165,000 result was more than two and a half times that forecast, with even the most optimistic estimate in the Reuters poll, 125,000, falling well short.

Forecasters are now expected to shift their outlook for the Federal Reserve. Most expect the central bank to raise its benchmark rate by a quarter point in December, a turn from the rate cuts of recent months, on the view that a labour market adding 165,000 jobs a month does not need cheaper borrowing. The next clue comes on Tuesday, November 10, with October consumer inflation data.

Why It Matters

For workers, the report is the best news of the autumn: employers are hiring again at a pace not seen in more than a year, and layoffs remain scarce, with weekly jobless claims near a 57-year low. A job market that adds 165,000 positions in a month gives people who want to change jobs real options, and wage growth of 3.1% over the year means pay is still rising for many.

For the Federal Reserve, the report complicates the path ahead. The central bank held its benchmark rate at 3.75% to 4.00% on October 28, after a September quarter-point cut, and its next decision is due December 9. Strong hiring and rising wages argue against cutting rates, and most forecasters now expect a quarter-point rise in December instead.

What Happens Next

October consumer inflation data arrives on Tuesday, November 10, and will shape the Federal Reserve's December decision alongside this jobs report. If inflation also comes in hot, the case for a December rate rise strengthens; if it cools, the Fed may hold. The next monthly jobs report, covering November, is due in early December, and the next weekly jobless claims reading will show whether the 189,000 level holds. Markets will also watch whether technology stocks steady after Thursday's selloff.

Frequently Asked Questions

How many jobs did the US add in October 2026?
Employers added 165,000 nonfarm jobs, the Bureau of Labor Statistics reported on Friday, November 6, 2026, far above the 65,000 forecast.

What is the US unemployment rate now?
It fell to 4.1% in October from 4.2% in September, while the labour force participation rate rose to 61.9% from 61.8%.

Which sector hired the most in October?
Professional and business services led with 70,000 new jobs, far above its average monthly gain of 15,000 over the past year.

How much did wages rise?
Average hourly earnings rose 14 cents, or 0.4%, to $38.00 in October, up 3.1% over the past 12 months.

What does the report mean for interest rates?
Most forecasters now expect the Federal Reserve to raise its benchmark rate by a quarter point in December; the next clue is October inflation data, due Tuesday, November 10.

For more on the US labour market, read our report on jobless claims falling to 189,000, a 57-year low and the earlier claims reading of 194,000 as hiring stayed sluggish.