October Jobs Report: U.S. Adds 165,000 Jobs

In October 2026, the U.S. economy added 165,000 nonfarm payroll jobs, marking a significant rebound in hiring compared to September.

Revisions to prior months were positive overall. August’s total was revised up to +186,000, while September was revised up to +60,000, bringing combined employment 84,000 higher than previously reported.

The unemployment rate edged down to 4.1%, with 7.1 million Americans unemployed, according to the U.S. Bureau of Labor Statistics.

Is the U.S. Job Market Growing?

October’s job gains point to renewed momentum in the labor market following several months of slower hiring.

Professional and business services led employment growth, while healthcare, transportation and warehousing, and manufacturing also posted solid gains. Meanwhile, most other major industries experienced little change in employment.

With payroll growth exceeding the average monthly gain over the past year and upward revisions to previous months, the latest data suggests hiring conditions improved in October. Unemployment remained relatively low, and labor force participation held steady.

U.S. Unemployment Rates by Group – October 2026

• Adult women: 3.6%
• Adult men: 3.9%
• Teenagers: 13.9%
• Whites: 3.7%
• Blacks: 6.6%
• Asians: 2.8%
• Hispanics: 4.7%

Unemployment rates across major demographic groups showed little change in October. The unemployment rate for Black workers declined slightly, while rates for other groups remained relatively stable.

Key Employment Statistics for October 2026

• Long-term unemployed (27 weeks or more): 2.0 million, representing 27.6% of all unemployed, little changed over the month.
• Average hourly earnings: Rose by 14 cents to $38.00, up 3.1% over the past year. Production and nonsupervisory employees earned $32.75, up 12 cents.
• Average workweek: Held steady at 34.4 hours. Manufacturing hours remained at 40.5 hours, while production and nonsupervisory employees averaged 33.8 hours.
• Labor force participation rate: 61.9%
• Employment-population ratio: 59.3%

The number of workers employed part time for economic reasons increased by 339,000 to 4.8 million, signaling a modest rise in underemployment despite stronger payroll growth.

Sectors with Notable Job Trends in October

Professional and Business Services

Professional and business services added 70,000 jobs in October, well above the sector’s average monthly gain over the past year.

Growth was concentrated in professional, scientific, and technical services (+33,000), administrative and support services (+28,000), and management of companies and enterprises (+9,000). The sector has added 269,000 jobs since a recent low in October 2025.

Healthcare

Healthcare added 42,000 jobs in October, continuing its steady upward trend and outpacing its average monthly growth over the prior year.

Hospitals added 16,000 jobs, while home health care services gained 11,000 and outpatient care centers added 5,000.

Transportation and Warehousing

Transportation and warehousing added 25,000 jobs in October, continuing its recovery from earlier employment declines.

Most of the gains occurred in couriers and messengers (+17,000) and air transportation (+4,000). The sector has added 104,000 jobs since reaching a recent low in February.

Manufacturing

Manufacturing added 19,000 jobs in October, continuing its gradual upward trend.

Gains were concentrated in computer and electronic product manufacturing (+7,000), machinery manufacturing (+4,000), and primary metal manufacturing (+4,000). The sector has added 101,000 jobs since a recent low in December 2025.

October Jobs Report Summary

The October 2026 jobs report showed a notable rebound in hiring, with payroll employment increasing by 165,000 jobs following several months of modest growth.

Professional and business services, healthcare, and transportation and warehousing led employment gains, while manufacturing continued its upward trend.

The unemployment rate edged down to 4.1%, wage growth increased slightly to 3.1% year over year, and average hours worked remained unchanged.

Overall, the labor market showed signs of renewed strength in October, supported by stronger payroll growth, upward revisions to previous months, and steady labor force participation. However, an increase in workers employed part time for economic reasons suggests some underlying challenges remain despite improved hiring momentum.

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