U.S. Employers Add 165,000 Jobs in October in Surprisingly Strong Report

The nation’s job growth had been sparse, but then came an October surprise.  

The U.S. added an impressive 165,000 jobs in October, according to the Bureau of Labor Statistics. The metric is a major increase from the 29,000 jobs that had been added in September, a number later revised to 60,000 jobs, and light years ahead of the 59,000 non-farm payroll jobs Dow Jones had forecasted as early as Friday morning. 

Moreover, the U.S. unemployment rate ticked down to 4.1 percent. At 189,000 jobless claims, layoffs now sit near the historic lows of 1969. 

The new numbers also provide clarity to the Federal Reserve, which has a dual mandate to fight inflation and keep unemployment low. With joblessness relatively under control, the Fed can devote its attention to taming inflation, which continues to bedevil an economy encountering headwinds from oil spikes, tariffs and stubborn price increases. 

Last week, in a 10-2 vote, the Federal Reserve’s Federal Open Market Committee (FOMC) kept its benchmark interest rate between 3.75 percent and 4 percent, even though inflation remains well above the central bank’s 2 percent target.

The Fed is likely to hike interest rates at least once before the year is out, per analyses of comments made by chairman Kevin Warsh. 

But the news from October has offered some respite to a shaky economy. Professional and business services added 70,000 jobs last month, health care added 42,000, while the financial sector added 7,000 jobs, according to BLS data.  

That said, the jobs picture has been muddled for quite some time. 

Payroll growth from January 2025 through September 2026 averaged just 35,000 jobs, and there has only been once in that time when more than 200,000 jobs were added in a single month, while seven months saw net job losses, according to CNBC. 

Brian Pascus can be reached at bpascus@commercialobserver.com.