U.S. job growth surges to 165,000 in October, beating expectations |
The U.S. labor market has shown renewed strength, adding 165,000 jobs in October 2026, significantly exceeding economists' forecasts of 59,000, according to the Labor Department. The unemployment rate fell to 4.1%, while employment figures for August and September were revised upward by a combined 84,000. Professional and business services led hiring with 70,000 new positions, followed by healthcare with 42,000 and manufacturing with 19,000, while construction lost 3,000 jobs. Average hourly earnings increased 3.1% year over year but continued to lag inflation, highlighting ongoing pressure on household purchasing power. Despite stronger employment figures, economists expect the Federal Reserve to remain focused on persistent inflation, with an interest rate increase still anticipated in December. Analysts also noted that hiring remains challenging for recent graduates and workers seeking new opportunities.
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