The United States economy added 165,000 jobs in October 2026, significantly exceeding economists’ expectations and signalling stronger-than-anticipated momentum in the labour market.
The latest employment report released by the Bureau of Labor Statistics (BLS) showed that nonfarm payrolls increased by 165,000 during the month, more than double the 65,000 jobs forecast by economists.
The unemployment rate also declined to 4.1% from 4.2%, contrary to expectations that it would remain unchanged.
The stronger-than-expected figures suggest that the US labour market remains resilient despite concerns about economic growth, elevated inflation and uncertainty surrounding the Federal Reserve’s interest-rate decisions.
Previous Months Record Stronger Job Growth
The October report also included significant upward revisions to employment figures for the previous two months.
September’s job growth was revised upwards from 29,000 to 60,000, while August’s figure increased from 133,000 to 186,000.
The revisions added a combined 84,000 jobs to the previously reported employment figures, suggesting that hiring activity during the late summer was stronger than initially estimated.
The improved figures provide a more positive picture of the US labour market after September’s disappointing report, which showed only 29,000 additional jobs against expectations of 90,000.
Private Sector Hiring Remains Positive
Separate employment data from payroll processor ADP showed that private-sector employment increased by 86,000 jobs in October.
Trade, transportation and utilities led the gains, adding 39,000 jobs, followed by education and health services with 28,000.
Leisure and hospitality added 19,000 jobs, while financial activities recorded an increase of 15,000. Construction contributed another 13,000 jobs.
However, professional and business services shed 27,000 jobs, marking another difficult period for the sector. Natural resources and mining lost 8,000 jobs, while information and manufacturing recorded smaller declines.
The encouraging jobs report comes amid heightened volatility in financial markets, particularly in technology stocks, as investors reassess expectations surrounding artificial intelligence investments and economic growth.
