US jobs market defies expectations with strong October gains
AgenciesUS employers created a surprising 165,000 new jobs last month, and the unemployment rate dipped to 4.1%.Hiring was far stronger than the 65,000 new jobs that economists had...
The U.S. jobs market surprised onlookers with robust October employment gains, adding a surprising 165,000 new positions, surpassing economists' expectations of 65,000. The unemployment rate contracted to 4.1%. The strong hiring came three days after President Donald Trump and the Republican Party suffered a significant electoral loss in midterm elections.
The job increase came despite 421,000 individuals entering the labor force. Hourly wages climbed 0.4% in October, marking the largest month-over-month rise since January. The upbeat report is expected to bolster Federal Reserve confidence in the labor market, potentially paving the way for a December interest rate increase to tackle high inflation.
Wall Street anticipates a December rate hike, with the probability at 77%, up from 67% earlier. Despite the job growth, worker purchasing power remains low, with wages up only 3.1% from October 2025. The professional and business services sector led the hiring surge, gaining 70,000 jobs, while healthcare added nearly 42,000. However, sectors like hotels and restaurants shed 10,600 jobs.
The job market has been solid but unremarkable, with companies, government agencies, and nonprofits collectively adding an average of 86,000 jobs monthly this year—moderate by historical standards yet a step up from the weak 2025 average of 9,700 monthly job gains.
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