Four things to note from Friday’s US jobs report

The US economy added 165,000 jobs in October, exceeding economists' expectations by 100,000, while the unemployment rate unexpectedly fell to 4.1%, according to the Bureau of Labor Statistics' report released on Friday. The workforce had contracted during President Donald Trump's first year, largely due to foreign-born workers leaving the country amid his immigration crackdown.

However, labor force participation and employment have been rising, primarily driven by foreign-born workers, reversing this trend in recent months.

The manufacturing sector, which lost 93,000 jobs during Trump's first year due to tariffs, has been on the rebound since December 2025, adding 101,000 jobs. This has led to a net gain of 8,000 factory jobs since Trump's return to the White House. Yet, the reduction in joblessness duration remains slower than the past five years, with unemployment remaining long for those who have lost their jobs.

Artificial intelligence tools' adoption by employers has not yet led to major job displacements across the economy, according to most economists. However, AI-exposed sectors such as information and finance continue to shed jobs, while professional and business services, despite also having high AI adoption, added 70,000 jobs in October. This trend of net job creation is evident in temporary help and management and technical consulting services.