U.S. Adds 165,000 Jobs in October as Unemployment Rate Falls to 4.1%

The U.S. economy added 165,000 jobs in October, and the unemployment rate fell to 4.1%, according to the Bureau of Labor Statistics.

The October jobs report

Payrolls rose by 165,000 in October, per the Bureau of Labor Statistics. The unemployment rate fell by one tenth to 4.1%. The Department of Labor said October hiring was driven by a strong boost from professional and business services, health care, and transportation and storage.

Revisions showed August payrolls increasing by 53,000 to 186,000 and September payrolls rising by 29,000 to 60,000.

The average hourly wage for all employees in private nonfarm payrolls rose by 14 cents, or 0.4%, to $38.00. Layoffs announced in October totaled 43,994, the lowest for that month since 2023.

The unemployment section reported that the total number of unemployed was 7.06 million, including 2 million long-term unemployed (27 weeks or more), representing 27.6% of total unemployed.

Sector and wage details

Fox Business reported that professional and business services added 70,000 jobs in October, and it said healthcare added 41,600 jobs in October.

Fox Business also stated that the number of people employed part-time for economic reasons rose by 339,000 to 4.8 million in October, and it described those workers as preferring full-time work but working part-time because their hours were reduced or they could not find full-time jobs.

Briefs.co reported that average hourly earnings rose 0.4% from the prior month and 3.1% year over year, topping projections of 0.3% and 2.9%. The workweek remained unchanged at 34.4 hours.

Rate and political context

The South China Morning Post said the strong October data could add to pressure for further rate hikes and put the Fed at odds with President Donald Trump. The same report included Trump’s demand, "LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!"

Briefs.co reported that the data arrived ahead of the Dec. 8-9 Federal Reserve meeting, with officials debating whether to restart rate hikes while inflation remains above the 2% target. Markets priced a higher chance of a quarter-point move at that meeting, with implied odds up to 76.8% on CME's FedWatch.

Why it matters

The October jobs report showed stronger-than-expected hiring and a lower unemployment rate, which may influence Federal Reserve interest rate decisions at its upcoming December meeting.

---

Sources

• newscord.org: U.S. Adds 165,000 Jobs in October as Unemployment Rate Falls to 4.1%: how 7 outlets framed it | NewsCord
• mezha.net: US adds 165,000 jobs in October as unemployment rate falls to 4.1%
• briefs.co: U.S. Adds 165,000 Jobs in October

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.