US Adds One Hundred Sixty-Five Thousand Jobs in October

US employers added one hundred sixty-five thousand jobs in October, exceeding expectations. Unemployment fell to 4.1%, and revised August and September estimates rose by eighty-four thousand jobs. Job growth appeared in healthcare, transportation, warehousing and manufacturing.

By Career Ahead AI · United States — AI-assisted, fact-verified against cited sources. Readers should verify key facts.

Hourly earnings and workforce participation rose

Average hourly earnings for private, nonfarm payroll employees rose by 14 cents to $38.00 in October. Across the year, average hourly earnings increased 3.1%, slightly faster than the previous month. The monthly change puts the average at $38.00, while the annual rate measures how pay changed over a longer period.^¹²

The labor force participation rate reached 61.9% in October, up from 61.8% in September. That measure tracks the share of people who are working or seeking work. Separately, the annualized inflation rate was 3.7% in September, a measure of price increases across the year.^¹²

Revisions lifted the August and September estimates

The Department of Labor estimated that employers added sixty thousand jobs in September, up from an initial estimate of twenty-nine thousand. It reported one hundred eighty-six thousand jobs added in August. The initial figures for those two months were revised upward by a combined eighty-four thousand jobs, lifting the earlier estimates alongside October’s employment gain.^¹²³

Separate estimates differed on professional and business services.

Separate estimates differed on professional and business services. The Department of Labor estimated that the sector added seventy thousand jobs in October. ADP reported that private employers added eighty-six thousand jobs overall, but said professional and business services shed twenty-seven thousand. The sector estimates therefore pointed in opposite directions, even as the two organizations reported different totals for private-sector hiring.^¹²

Healthcare and manufacturing added jobs as layoffs shifted

Healthcare added forty-two thousand jobs in October. Manufacturing employment added nineteen thousand. Those sector figures provide detail behind the broader job gains: healthcare contributed more than twice as many jobs as manufacturing, while professional and business services had a separate, conflicting set of estimates from the Department of Labor and ADP.^¹²

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Layoffs in September fell to their lowest level in a year and a half. Challenger, Gray & Christmas tracked just under forty-four thousand layoffs in October, seventy-one percent fewer than in the previous October. The September measure and the October count cover different months; together, they show the reported decline in September layoffs alongside a year-over-year comparison for October.^¹²

Long-term unemployment and household costs remained pressures

The number of long-term unemployed Americans rose from about one point one million in 2023 to two million in October 2026. The voluntary quits rate was 2.1% in September, up from 1.9% in August. Employers also announced plans to hire four hundred forty-four thousand six hundred ninety-two workers in October; announced plans are not the same measure as jobs already added.^¹²

Glassdoor polling found that 31% of workers were dissatisfied with career opportunities at their current job. It also found that 81% had delayed leaving a job because the search felt overwhelming. A separate assessment described the economy as squeezing people financially and making it hard to get by, pairing job-market concerns with pressure on household budgets.^¹²

Gas prices averaged one dollar a gallon more than a year earlier, a rise attributed to the war in Iran. Diesel, used throughout the supply chain to power large vehicles, was reported 60% above prewar levels. The Federal Reserve raised interest rates in September for the first time since 2023, bringing the federal funds rate to a range of 3.75% to 4% and citing inflation. Officials kept rates steady at their October meeting.^¹²

Glassdoor polling found that 31% of workers were dissatisfied with career opportunities at their current job.

Weigh Sector Data Before Switching

If you are weighing a move into professional and business services, note the conflicting October estimates: the Department of Labor counted 70,000 jobs added, while ADP reported a loss of 27,000. That gap means the sector's hiring picture is uncertain, so ask for a written offer and verify the role's stability before leaving a current job. Healthcare added 42,000 jobs and manufacturing added 19,000, making those sectors more reliable targets for a job search right now.^¹²

With long-term unemployment rising from about 1.1 million in 2023 to 2 million in October 2026, plan for a longer search if you lose work. The 81% of workers who delayed leaving because the search felt overwhelming shows that staying put is common, but the voluntary quits rate rose to 2.1% in September, so some workers are moving. Use the 3.1% annual earnings increase as a baseline when negotiating pay, and expect employers to be cautious given the Fed's rate range of 3.75% to 4%.^¹²

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