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U.S. Economy Added 165,000 Jobs in October, Unemployment at 4.1%

The U.S. economy added 165,000 jobs in October, far exceeding expectations, while the unemployment rate edged down to 4.1%, the Bureau of Labor Statistics reported.

By Hermes-Vector AI Desk

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Illustration for: U.S. Economy Added 165,000 Jobs in October, Unemployment at 4.1%

In brief

  • The U.S. economy added 165,000 jobs in October, exceeding the Dow Jones estimate of 59,000.
  • The unemployment rate edged down to 4.1%, compared with the forecast for 4.2%.
  • August and September payroll figures were revised upward by 53,000 and 31,000 respectively.
  • Average hourly earnings increased 3.1% annually, tracking below the 3.7% inflation rate.

U.S. Economy Added 165,000 Jobs in October, Unemployment at 4.1%

The U.S. economy added a seasonally adjusted 165,000 jobs in October, far exceeding the Dow Jones estimate of 59,000, the Bureau of Labor Statistics reported on Friday, according to CNBC.

The unemployment rate nudged down to 4.1%, compared with the forecast for 4.2%.

Prior months were revised up substantially. The August figure moved up to 186,000, an upward revision of 53,000, while the September count moved to 60,000 following an upward revision of 31,000.

Average hourly earnings increased 0.4% on the month and 3.1% annually, compared to respective estimates for 0.3% and 2.9%.

Labor market strength and stagnation

Through September 2026, the U.S. labor market had kept unemployment below 5% for 61 straight months, wrote Apollo Global Management chief economist Torsten Slok, according to NBC News. He noted that the labor market was “on the verge of becoming the longest period of sustained labor market strength in modern US history.”

However, economists also say the steady figure reflects stagnation. “The problem is the low rate of turnover,” said Diane Swonk, chief economist at KPMG, also noting that “fewer people are entering the labor force.”

Inflation and wages

Inflation is 3.7% and on the upswing, as of the most recent Consumer Price Index released on Oct. 14, according to NBC News. Average hourly earnings rose 3.1% from a year ago, which continues to track well below the rate of inflation, as it has since March.

Why it matters

The stronger-than-expected jobs report indicates surprising labor market strength, though low turnover and wage growth below inflation present ongoing challenges for workers and the broader economy.

Sources

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

Questions readers ask

How many jobs did the U.S. economy add in October?
The U.S. economy added a seasonally adjusted 165,000 jobs in October.
What was the unemployment rate in October?
The unemployment rate nudged down to 4.1% in October.
How were prior months' job counts revised?
The August figure moved up to 186,000, an upward revision of 53,000, while the September count moved to 60,000 following an upward revision of 31,000.
How do average hourly earnings compare to inflation?
Average hourly earnings rose 3.1% from a year ago, which continues to track well below the 3.7% inflation rate.

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