Employers across the United States added 165,000 jobs in October, soaring past economists' expectations of 65,000 new positions and suggesting a revival in hiring after a sluggish 2025.
The Labor Department reported Friday that the unemployment rate stood at 4.1% in October, down from 4.2% the previous month. The department also revised up payroll gains for August and September by a combined 84,000, indicating hiring in those months was stronger than initially reported.
Ryan Sweet, chief global economist at Oxford Economics, described the labor market as solid during a conference in New York earlier this week, though he noted some workers still face challenges. “All signs point to a solid labor market, even if it is difficult for pockets of workers,” Sweet said.
The stronger-than-expected hiring comes amid inflation and other economic headwinds.
The U.S. saw strong headline payroll growth (+165K) in October with upward revisions to August and September (+84K combined)
The unemployment rate ticked down by 0.03 pp to 4.14%
The job growth suggests the economy is gaining momentum despite inflation, which could influence Federal Reserve policy on interest rates.
For job seekers, a stronger labor market may improve prospects, though challenges remain for certain sectors.
The upward revisions to prior months indicate the recovery may be more durable than previously thought.
Background
The US labor market has shown resilience after a period of sluggish hiring in 2025, when monthly job gains averaged only 10,000. October's surge far exceeded the 65,000 jobs that economists polled by FactSet had predicted, reflecting a possible turning point in employment trends.
Key Perspectives
Economists polled by FactSet: Expected the economy to add 65,000 jobs in October.
Ryan Sweet, chief global economist at Oxford Economics: Said the job market is solid, but "it is difficult for pockets of workers."
What to Watch
Whether the trend continues in coming months, particularly with year-end hiring patterns.
How the Federal Reserve responds to the stronger jobs data in its next interest rate decision.
Sector-specific employment figures to identify which industries are driving the growth.
