U.S. Economy Adds 165,000 Jobs in October

The Bureau of Labor Statistics reported that the U.S. economy added 165,000 jobs in October, significantly exceeding analyst expectations of approximately 70,000. This growth pushed the unemployment rate down to 4.1 percent from 4.2 percent the previous month. Professional and business services led the gains with 70,000 jobs, followed by health care with 42,000 and transportation and warehousing with 25,000. Manufacturing added 19,000 jobs, bringing its total increase since December 2025 to 101,000.

Government data also included upward revisions for August and September, adding 53,000 and 31,000 jobs respectively. Kevin Hassett, director of the National Economic Council, attributed the strong report and record-low jobless claims to increased worker confidence and a surge in labor demand.

Despite the positive headline figures, the report revealed underlying weaknesses. Part-time positions for economic reasons jumped by 339,000, and the U-6 underemployment rate rose even as the U-3 rate fell. Additionally, real wages remained negative. While market indicators like ADP and Revelio Labs data showed positivity, prediction markets anticipated October CPI to be 3.7 percent year-over-year.